Free economic zone planned for Gali, Georgia’s breakaway Abkhazia

De facto leadership of Georgia’s breakaway Abkhazia region is looking to establish a free economic zone to contribute and stimulate the economy.

All necessary documents were already ready to create the free economic zone on the 7,000 hectares territory in Gali, 77 km southeast to Sokhumi, the capital city of Abkhazia – one of the Russian-occupied regions of Georgia.

This week de facto head of the Administration of Gali district Temur Nadaraya requested to the de facto president of Georgia’s breakaway region of Abkhazia Raul Khajimba to create the free economic zone in Gali.

Free Zones are geographic areas in which a governmental authority offers incentives, different from the host country's regular policies, to companies operating in the region. Given the nature of these incentives, designated zones are often said to function as ‘growth poles’ for the region, or even beyond.

The taxation rules are determined by each country.