BLC Law Office Partner Rusa Tchkuaseli discusses Georgia’s growing role as a regional hub, the sectors drawing the most investor attention, and the reforms still needed to turn ambition into lasting growth.
Bridge for Global Investors
“In 2025, Georgia finds itself in a unique position: small in market size, yet disproportionately important in connectivity,” Tchkuaseli explains. “Its location along the Middle Corridor makes it a natural bridge between Europe and Asia. The investment environment is defined by a straightforward tax system, relatively light corporate formalities, and a welcoming approach to foreign ownership. Importantly, the country is moving toward EU-style regulations, which enhance legal predictability and investor confidence, though it also raises compliance obligations.” As a result, she says, “Georgia is increasingly seen not only as a frontier market but as a base of operations for companies looking to expand across the Caucasus, Central Asia, and the Black Sea region. Fitch Ratings has affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating at ‘BB’ with a Negative Outlook. This shows confidence in the country’s resilience despite internal or external challenges.”
“Capital flows into Georgia remain diverse,” Tchkuaseli adds. “European and Turkish investors, along with neighbors such as Azerbaijan, continue to play a leading role. What has changed in recent years is the growing presence of Gulf investment – particularly from the UAE and Saudi Arabia – which is moving beyond real estate into energy, logistics, and hospitality. Central and Eastern European investors are also gaining ground, often through joint ventures in manufacturing, renewables, and food processing.” Meanwhile, she adds, “Asian players, including Singaporean funds and Chinese corporates, are testing opportunities in logistics, fintech infrastructure, and digital services. International financial institutions remain central in financing large infrastructure and renewable projects, de-risking entry for private investors.”
Investors’ Favorites
Tchkuaseli highlights that foreign investors are gravitating toward several core sectors. “Renewable energy is at the forefront, as Georgia’s hydro, solar, and wind resources offer compelling opportunities supported by growing demand and improving grid capacity,” she says. “Logistics and industrial real estate are booming, driven by Georgia’s growing role in the Middle Corridor and the need for terminals, warehouses, and value-added manufacturing facilities. Hospitality remains strong, with year-round tourism and the spread of international hotel brands beyond Tbilisi and Batumi.” In addition to that, “digital services – particularly fintech, payments, and outsourcing – are attracting interest as the National Bank of Georgia has made fintech a strategic priority. A clear regulatory environment builds investor confidence.”
The Road to a Hub
Despite the opportunities, investors encounter some hurdles. “The Georgian business environment is generally open and accessible, but investors often encounter a few recurring hurdles,” Tchkuaseli explains. “Courts remain slow, and there is growing concern with respect to impartiality and independence, as well as competence and qualification of Georgian judges.” According to her, in the energy sector, Georgia has moved from feed-in tariffs to a CfD model for renewable energy, but it is still relatively new and evolving. “Investors and lenders see uncertainty in how settlements, balancing costs, and termination events will be handled in practice. Financial services and fintech investors face increasingly sophisticated compliance demands as the National Bank of Georgia raises standards in line with EU practice. Data protection and cross-border transfer rules are also becoming a decisive factor in structuring deals.” Finally, “while arbitration is generally well accepted in Georgia and arbitral awards are formally enforceable under the New York Convention, the practical reality is less straightforward,” she says. “Court proceedings for recognition and enforcement often prove slow, and in some cases, the judiciary has shown reluctance or inconsistency in supporting arbitral outcomes. Lack of an arbitration-friendly environment undermines predictability for investors.”
When it comes to Georgia’s ambition of becoming a regional investment hub, “the ambition is realistic – but conditional on execution,” Tchkuaseli notes. “Georgia has already proven it can attract attention well beyond its size in tourism, services, and logistics. To truly become a hub, several priorities stand out: investment in large-scale infrastructure, from deep-sea ports to grid modernization, more standardized and bankable project frameworks, particularly in energy and PPPs, and deeper local capital markets to support long-term financing. Equally important is the assurance of rule-of-law guarantees, underpinned by an independent and impartial court system. Strengthening dispute resolution infrastructure, and particularly supporting arbitration, will be key to providing investors with swift and reliable justice. Together, these measures would transform Georgia’s aspiration into a durable reality.”
Looking ahead, “the next few years will be shaped by several defining trends,” Tchkuaseli says. “The Middle Corridor is set to attract more capital in logistics, warehousing, and light manufacturing. Energy investment will evolve from standalone hydro projects to more balanced renewable portfolios, including solar, wind, and storage. Digital infrastructure – data centers, cloud services, and fintech platforms – will grow in importance as regulatory clarity improves and cybersecurity standards tighten. Gulf capital and international financial institutions are expected to deepen their partnerships, crowding in private players into infrastructure and green energy. Regulatory convergence with the EU – particularly around ESG, consumer protection, and data governance – will raise compliance costs but improve overall asset quality. Finally, real estate will professionalize further, with institutional management increasingly replacing fragmented, one-off development models.”
