Georgia enjoys more Foreign Direct Investments

The number of Foreign Direct Investments (FDI) in Georgia has reached a five-year high.

Preliminary data released by Geostat, the National Statistics Office of Georgia, noted the number of FDIs in Georgia at the end of 2014 amounted to $1.27 billion USD. This was a 39 percent increase on the same data of 2013.

Geostat figures revealed this was a five-year high; where in 2013 FDI’s amounted to $942 million, in 2012 FDIs reached $912 million, in 2011 FDIs reached 1.1 billion and in 2010 FDIs amounted to $814 million.

Meanwhile 21 percent ($266 million) of the total $1.27 billion of FDIs were reinvestments, stated Geostat.

There were four countries who invested heavily in Georgia in 2014. These countries were the Netherlands, who invested $331 million in Georgia, Azerbaijan with $302 million, China with $195 million and the United Kingdom with $114 million.

In this respect the Netherlands’ investment made up 26 percent of Georgia’s total FDIs. Azerbaijan’s investment was 24 percent, China’s contribution was 15 percent and the United Kingdom’s investment was nine percent.

Other major investor countries in 2014 were:

• Luxembourg – $85 million;
• USA – $80 million;
• Turkey – $67 million;
• Russia – $66 million;
• Panama - $61 million and
• Malta - $38 million.

Meanwhile, most FDIs were evident in the transport and communication sector, noted Geostat. Last year this sector generated $343 million in FDIs. This was significantly higher than the amount generated in 2013.

In comparison to the past five years, FDIs in this sector reached $140 million in 2013, $73 million in 2012, $127 million in 2011 and $215 million in 2010.

Georgia’s construction sector generated the second highest value of FDIs last year – with $295 million GEL. The third sector was manufacturing, which enjoyed $174 million in FDIs.

In total, the transport and communications sector, the construction sector and the manufacturing sector generated 64 percent of all FDIs in 2014.

In terms of quarterly data, Geostat figures showed FDIs in Georgia amounted to $349 million in Q4 (fourth quarter) 2014 – up 61 percent from the same data of Q4 2013.

In Q4 2014, Azerbaijan invested the most in Georgia ($84 million) followed by the Netherlands ($67 million) and the United Kingdom ($66 million).

Geostat noted the adjusted data will be published in mid-August.