Growing regional market - Companies operating in Georgia can benefit from the growing regional market and various regional import substitution opportunities
- Access to 2.3 billion markets without Customs Duty - Georgia has Free Trade Agreements (FTA) with Turkey, EFTA and CIS countries, Deep and Comprehensive Free Trade Area (DCFTA) with EU and FTA with the People’s Republic of China was singed in 2017
- Competitive labor costs - the average monthly salary in manufacturing industry was 350 USD (2016) including white and blue-collar workers
- Low utility costs - currently up to 80% of power is generated via hydropower plants, leading to cheaper energy cost.
- Standard cost for 1 kwh is 6 USD cents for 30-110 kV high voltage electricity
- 4 Free Industrial Zones (FIZ) - In FIZ, businesses are exempt from all taxes except Personal Income Tax (20%), which is paid from employees’ salaries
- Large import overhang on goods that are not usually traded extensively between the countries, provides regional import substitution potential in food processing, paints and coatings, construction materials, washing and polishing preparations, household goods etc.
- Georgia’s current advantages in terms of handling large transshipment flows, business stability, low cost of power generation, existing raw materials and intermediate products provide opportunities for large industrial projects, such as production of iron, aluminum and steel products.
SEVERAL HIGHLY ATTRACTIVE REGIONAL PRODUCTION OPPORTUNITIES
- Paints, varnishes and other coatings
- Washing, cleaning and polishing preparations
- Nitrogen fertilizers
- Perfumery and cosmetics
- Packaging materials
- Tubes, pipes and hoses
Other articles of plastics
- CONSTRUCTION MATERIALS
- Articles of stone, plaster, cement, asbestos, concrete and similar materials
- Glass fibres and articles thereof
- OTHER SECTORS
- Apparel and textiles
- Ceramic products - tiles, sanitary ware, refractory bricks