Private Capital Markets - The Republic of Georgia

Goals

To gain a deeper understanding of the private capital markets in the Republic of Georgia and obtain insights into the the best industry verticals for private investment in the country.

Early Findings

  • In profiling Georgia, the European Bank for Reconstruction and Development (EBRD) says that “Energy is the sector with the most buzz in Georgia today, and it is one of the priority areas for the EBRD in the country.”
  • According to estimates, Georgia has one of the largest potentials for hydropower in the world.
  • An outlook report on Georgia published in 2018 points out that “the Georgian banking system is the most robust in the region, with its two largest banks now listed on the London Stock Exchange and included in the FTSE 250”.
  • According to the United Nations World Tourism Organization, Georgia is 4th fastest growing tourist destination in the world with the hospitality industry growing at a CAGR of 16.6%.
  • In 2017, transportation, financial services, and construction industries saw the most investment in Tbilisi.
  • The Sectoral Analysis of Tbilisi’s Investment Potential selected the hospitality, retail and entertainment, creative, healthcare, and pharmaceuticals industries as being strategically important for Tbilisi and potentially attractive for investors considering the growth opportunities.
  • Tourism has been one of the fastest-growing sectors in Georgia with tourist arrivals up 18% in 2017.
  • There’s a positive outlook in the tourism and hospitality sector, considering the boost by the government’s Tourism Development Strategy 2025 campaign, the simplification of visa procedures and rising number of low-cost carriers flying to Georgia.

Summary

  • During the initial hour of research, we took a more general outlook to the investment potential in Georgia, providing general industry insights.
  • Due to time limitations, we could not delve deeper for more information.
  • The early findings outlined above, however, set the pace for our research team, who will conduct more in-depth and comprehensive research covering the desired areas.
  • Please proceed to choose one or more of the proposed next steps in the scoping section below.

Proposed next steps:

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