Georgian PM: $6bln UAE investment to “further boost” domestic economy

Georgian Prime Minister Irakli Kobakhidze on Sunday said a recent $6 billion investment agreement signed with Emaar Group, a real estate company from the United Arab Emirates, was expected to contribute to the Government's goal of enhancing the nation’s economy by ₾40 million ($13.99mln) over the next four years.

Our goal was to increase the economy from ₾90 billion ($31.47bln) to ₾130 billion ($45.46bln) over the next four years, aiming for an additional ₾40 billion. With the investment from the Emaar group, we can further boost our country’s economy by several billion lari”, Kobakhidze told Imedi TV.

The Prime Minister highlighted the agreement, signed last week during his visit to Abu Dhabi, for a “multifunctional development project” in the Georgian capital city of Tbilisi, the Black Sea city of Batumi and the coastal town of Gonio.

We are talking about the development of two crucial infrastructure areas in Tbilisi and Adjara [region in the west], covering a total of three million square metres. This project includes not only residential zones but also enhancement of hotel infrastructure, medical facilities, sports complexes, and recreational areas”, Kobakhidze said.

In addition, there will be schools, kindergartens, and shopping malls in these locations. Notably, a significant portion of the area in Tbilisi will be dedicated to green spaces and recreational facilities, with approximately 34 percent of the territory reserved for this purpose”, he added.

The Prime Minister noted the project would involve local population, generating new jobs and accelerating economic growth.

This is a very good approach that is particularly beneficial for our country and its population, both in terms of accelerating economic growth and creating new jobs. This project holds special significance for our nation”, Kobakhidze said.

Highlighting the effectiveness of the Government’s economic policies, the Prime Minister attributed the “successful negotiations” to the “leadership” of Vice Prime Minister Levan Davitashvili and the “professionalism” exhibited by the Government’s economic team.

The primary motivation behind this decision is our outstanding economic team. The extraordinary management, led by [...] Davitashvili, played a crucial role in these negotiations. When you know there are professionals on the other side, your motivation to invest in that country naturally increases”, he said.

Maintaining peace, along with the appropriate policies and vision of our Government, has been a crucial factor that encouraged our friends in the UAE to make a large-scale investment in our country”, Kobakhidze added.

The Prime Minister emphasised it was “impossible for anyone to consider any economic activities” in Georgia without “peace” being ensured in the country.

We have actively discussed the issue of peace in the UAE with both Government and business leaders. They have a high regard for our policy focused on maintaining peace in our country and appreciate our achievements, particularly over the past few years”, he said.

Kobakhidze pointed out the country’s investment climate had also played a role in attracting  the interest from Emaar.

Additionally, we have an appropriate investment business environment, supported by sound legislation, including a very good, simple tax system with low taxes and a liberal economic framework. This is the second important factor that attracted this investment to our country”, he said.

Finally, as [Mohamed Ali Rashed Alabbar, the Founder and Managing Director of Emaar group], mentioned, he has a strong emotional connection to Georgia and spoke particularly warmly about Tbilisi and Batumi”, the Prime Minister added.

In comments on Georgian opposition’s criticism of the agreement, Kobakhidze drew parallels to the group’s project in Serbia “several years ago”, saying the opposition in the country had also initially expressed concerns about the investment “but later embraced the developments”, with “even opposition representatives purchasing flats” in the residential projects.