Untapped potential – How higher education can power Georgia’s economy

Georgia has long been recognized as a reform-minded country with a dynamic economy, attractive investment climate, and a strategic location bridging Europe and Asia. Much attention has focused on traditional growth sectors such as infrastructure, logistics, tourism, and energy. Yet one of the most promising areas for long-term development often receives less attention: higher education. If managed strategically, the sector could serve as both an engine of economic growth and a powerful tool for international influence.

A growing contributor to the economy

Higher education is already emerging as an important contributor to Georgia’s economy. The sector is expanding quickly, driven by rising enrollment in private universities, increasing government investment, and most importantly, the growth of international education. In 2023, revenue generated from higher education amounted to GEL 1.5 billion – up nearly 20% YoY due to increasing tuition fees and enrollment of foreign students.

Students from across the world are choosing Georgia as a study destination, particularly in medicine and the health sciences, but also in business, international law, engineering, and IT. The number of foreign students in Georgia’s higher education system has more than doubled over the past four years, reaching 37,100 in the 2024/2025 academic year—a 21% YoY increase. Of those, 15% are enrolled in Bachelors programs, while 85% are enrolled in graduate programs, certified physician training, or medical programs.

The impact of this trend goes well beyond tuition fees. Students rent apartments, use public transport, and spend on food, services, and leisure, fueling a wider ecosystem of jobs and businesses. In this sense, higher education is not only about academic achievement but also about stimulating everyday economic activity. Investment bank Galt & Taggart forecasts that demand could lead to 48,000 foreign students enrolled at Georgian universities by 2028, contributing an estimated $500 million to the economy.

Equally important is the long-term benefit of future diplomatic relationships. International students often return home with positive experiences of Georgia. They become informal ambassadors, strengthening the country’s visibility abroad, and creating networks that can later translate into business, tourism, and diplomatic ties.

Georgia as an emerging education hub

Georgia has many advantages that make it attractive as a regional hub for education. Universities already attract students from dozens of countries and maintain exchange programs with international partners, helping integrate Georgia into the global academic community.

Another strength is Georgia’s participation in the Bologna Process, which ensures that degrees from Georgian institutions are recognized across the world and facilitates seamless mobility with transfer of credits. Many universities are also working toward additional accreditations to further enhance their global competitiveness.

Cost is another major factor. Tuition fees and living expenses remain significantly lower than in Western Europe or North America, yet the quality of education continues to improve. English-language programs are expanding, making Georgian universities accessible to a wider pool of students. Combined with the country’s reputation for safety and hospitality, these factors create an appealing environment for young people seeking an affordable but credible international education.

Improved air links have also played a role. Georgia’s growing connectivity with India and the Middle East has opened new opportunities. In fact, in the 2024/2025 academic year, the majority of foreign students in Georgia came from India (55%), followed by Jordan (7%) and Israel (6%).

Looking ahead, there is scope to diversify beyond medicine, where most international students are currently concentrated. Business, engineering, construction, IT, and the social sciences are promising fields. Planned reforms, such as shorter degree programs aligned with international practice, are expected to attract even more students in the future.

Challenges in the sector

Despite strong momentum, Georgia’s higher education sector still faces hurdles. “Visa and residency procedures often discourage students and faculty. Changing local and international accreditation standards are difficult to follow and limited access to international certifications can reduce Georgia’s global competitiveness,” says AmCham First Vice President and President of Georgian American University Michael Cowgill. Infrastructure, particularly in medical training, remains underdeveloped, leaving many students without sufficient practical opportunities. Oversight is fragmented across several ministries, creating duplication and inefficiency.

These challenges are real but solvable. With targeted reforms and stronger coordination, Georgia could overcome them and unlock the sector’s full potential.

“Georgia has the chance to position education as a true export industry with the right positioning and marketing. Every international student here is not just a learner, but a long-term bridge to their home country, elevating Georgia’s reputation for higher education,” notes Cowgill.

AmCham and the Investors Council: advocating for change

AmCham Georgia has made higher education a priority, bringing together universities, businesses, and government to address obstacles and propose solutions. Its Education Committee focuses on easing visa and residency procedures and supporting international accreditation. It also fosters partnerships with foreign universities to expand exchange opportunities.

Through its role in the Investors Council, AmCham is working to ensure that education reforms are part of the wider economic development agenda. This coordinated advocacy helps keep higher education on the national radar and positions it as a strategic driver of growth rather than a secondary issue.

“Companies within various industries need skilled graduates, and international students bring both talent and diversity into the economy,” notes Co-chair of the AmCham Education Committee and Member of the Board of Directors Sandro Shelia.

Georgia’s higher education sector is a growing industry with the power to transform the economy, enhance foreign relations, and strengthen the country’s international standing. But to fully realize this potential, Georgia must address regulatory bottlenecks, ensure consistent quality across institutions, and build a strong international brand. With coordinated action from government, business, and academia, the country has every opportunity to unlock one of its most valuable assets: the knowledge, skills, and global connections that higher education brings.