Irakli Kobakhidze has set out an ambitious vision for Georgia’s future since becoming the country’s Prime Minister in February 2024. After years of serving as a member of Parliament and chairman of the ruling Georgian Dream party, Kobakhidze now leads at a time when the country is experiencing broad-based economic growth, boosted by strategic investments in key sectors like real estate, tourism, and finance. At the same time, Georgia’s growing role as a key connectivity hub, particularly within the Middle Corridor, is becoming increasingly central to the country’s international ambitions.
Economic Growth and Key Priorities
Kobakhidze highlights Georgia’s impressive economic trajectory, noting that the average growth rate has been above 9.5% annually since 2021. In fact, the country started 2024 with a growth rate of 11.1%, underscoring its consistent economic expansion. “Over the past four years, we have more than doubled our nominal GDP,” Kobakhidze said.
This economic development is underpinned by Georgia’s liberal tax policies, which aim to foster a favourable environment for business. The government is also investing in strengthening the country’s connectivity, leveraging its strategic location to boost its role in regional and international trade.
A key project in this regard is the development of new highways, including a motorway linking Tbilisi to Batumi, which is set to be completed by the end of this year. This will eventually extend to the Azerbaijani and Armenian borders. The country is also making significant strides in its railway and airport infrastructure. A new international airport in Tbilisi is set to accommodate 18 million passengers, a significant increase from the current capacity of 4 million. Additionally, the expansion of Kutaisi International Airport and the development of a deep-sea port in Anaklia are further investments aimed at solidifying Georgia’s position as a transport and trade hub.
International Partnerships and Investments
Kobakhidze is focused on strengthening Georgia’s international relations, particularly with its neighbours and global partners like the UAE. He has visited the UAE twice in recent years, cementing ties that have already resulted in a significant investment by EMAAR Group, valued at $6.6 billion. This deal will boost Georgia’s economy by at least 1.5% of annual GDP, particularly in key areas like real estate development around Tbilisi and Batumi.
“The UAE is an excellent example of a nation from which we can learn,” Kobakhidze said, pointing to the UAE’s rapid development in recent years. Georgia, with its favourable tax environment and strategic location, is eager to replicate some of the UAE’s successes, particularly in sectors like tourism, real estate, and energy.
Energy and Sustainable Development
The energy sector is a major focus for Georgia’s future growth. The country has significant potential in hydro, wind, and solar energy, and the government plans to increase its electricity generation capacity to 8 gigawatts by 2028, with a further goal of reaching 10 gigawatts by 2030. This will not only make Georgia self-sufficient in energy but also enable it to export electricity to European markets via the Black Sea Submarine Cable Project.
Alongside energy, sectors like agriculture, tourism, and real estate are also seen as key to Georgia’s ongoing development. In particular, the IT sector has experienced rapid growth since 2021, and the government is keen to continue strengthening this part of the economy.
Investor-Friendly Environment
Kobakhidze emphasises that Georgia’s stable and investor-friendly environment is crucial for future economic success. The country’s taxation system is simple, with low rates and minimal bureaucracy. It is also one of the safest countries in the region, ranking highly in various global safety indices. “Georgia is a peaceful country with a clear vision,” he noted, adding that the country’s hospitality is a cornerstone of its culture, making it an attractive destination for both tourists and investors.
The government’s commitment to maintaining stability is further underscored by a constitutional clause stating that taxes cannot be increased without a referendum, providing significant assurances to investors. With a population of just 3.7 million, Georgia’s growing economy has already led to the creation of 190,000 new jobs in recent years.
Looking Ahead
Kobakhidze remains focused on continuing Georgia’s growth, with a keen eye on both local and international partnerships. His leadership and the country’s forward-thinking policies are positioning Georgia as a leading investment hub in the region. With infrastructure projects underway, strong international relations, and a thriving economy, Georgia looks set for a promising future.
For investors and tourists alike, Georgia’s rapidly improving infrastructure and stable economic environment present ample opportunities. As the country continues to develop, it is poised to become an even more attractive destination on the global stage.
For those looking to explore new investment opportunities, the energy sector and tourism are among the many areas of growth in Georgia.
