Investment News
Investor.ge provides a brief update on investments and changes in government policy that could impact the business environment. Information in this issue was taken from BM.ge
Central bank holds monetary policy rate at 8%
At its November 5 meeting, the National Bank of Georgia (NBG) kept the refinancing rate at 8%, maintaining a “moderately tight” stance as inflation remains above target. Headline inflation stood at 5.2% YoY in October, driven primarily by food prices, while core inflation was closer to the NBG’s 3% target. The bank noted that economic activity was broadly aligned with long-run potential and highlighted global price volatility as a key risk.
FX reserves reach $5.6 billion
In October 2025, the NBG purchased $167 million on the FX market, bringing Georgia’s international reserves to $5.6 billion by month-end. The central bank continues to rebuild buffers after heavy currency-market interventions in 2024, citing geopolitical uncertainties and regional currency pressures.
Tbilisi announces tender for new tram line
In October, Tbilisi City Hall launched a tender for the design and construction of a major new tram line. The tender covers the preparation of design and budgetary documentation, as well as the construction and installation works for the line.
The new line will run from the intersection of Didi Dighomi’s 3rd and 4th micro districts to the Didube metro station, primarily along Davit Agmashenebeli Avenue, covering a total length of 7.5 kilometers with 11 stops. The project also includes the construction of a tram depot capable of servicing 10 to 11 tram sets, featuring administrative and production facilities, covered storage, washing stations, emergency access points, and all essential engineering systems.
External merchandise trade up 8.6% in Jan–Oct 2025
Preliminary Geostat data shows that Georgia’s external merchandise trade reached $20.8 billion in January–October 2025, an 8.6% increase YoY. Exports rose 6.8% to $5.8 billion, while imports grew 9.3% to $15 billion. The resulting trade deficit totaled $9.2 billion, or 44% of overall turnover.
U.S. and EU exceed 60% of remittances
According to TBC Capital’s review released in October 2025, the U.S. and EU together accounted for 63% of remittance inflows to Georgia in January–September 2025. Remittances grew 13.7% YoY in September, driven by strong inflows from Italy, Germany, Greece, and the U.S., while inflows from Russia continued to decline.
Passenger traffic rises across all airports
Georgia’s airports recorded double-digit growth in the first nine months of 2025, with passenger numbers rising across Tbilisi, Kutaisi, and Batumi. According to the United Airports of Georgia, total passenger flow grew from 4.6 million passengers in the same period of 2024 to 5.8 million passengers in the first nine months of 2025—a 27% increase YoY. The increase was supported by new routes launched earlier in the year, including India–Georgia and Türkiye–Georgia services.
Digital lari unlikely in near term, NBG says
In late October 2025, the National Bank indicated that it may not proceed with introducing a digital lari. The NBG first began exploring a digital lari concept in 2021–22, following global trends in central bank digital currencies (CBDC) and aiming to evaluate potential benefits for retail payments, financial inclusion, and innovation in digital finance.
However, officials noted in October that Georgia’s existing payment ecosystem already provides fast, low-cost, and highly accessible electronic payments, reducing the immediate need for a CBDC. The NBG highlighted several outstanding questions, including privacy safeguards, cybersecurity risks, and the impact on monetary policy transmission, which require further analysis before any pilot can proceed.
Mortgage rates rise as new loans slow
Georgia’s mortgage market continued to tighten in January–September as commercial banks raised interest rates in response to global financing conditions and a more cautious domestic credit environment. Data published in October shows that average mortgage rates increased across both GEL-denominated and foreign-currency loans, reflecting higher funding costs, elevated long-term inflation expectations, and the National Bank of Georgia’s decision to maintain a moderately tight 8% policy rate. New mortgage issuance declined over the same period, though overall portfolios remained supported by steady housing demand in Tbilisi and Batumi.
Insurance market grows 11% in 9M25
Georgia’s insurance sector expanded by 11% YoY in the first nine months of 2025, according to updated market data released by ARDI in October 2025.
The increase in premiums was driven more by price hikes than by a rise in the number of insured clients: in the health-insurance segment, the number of insured persons grew by only 4%, while premium volume increased by 11%. In motor insurance, premiums rose by 20%, whereas the number of insured vehicles increased by 9%.
According to data from the State Insurance Supervision Service, as of September end, the 19 licensed insurance companies in Georgia collected GEL 1.1 billion in premiums from direct insurance activities—an 11.6% increase compared to the same period in 2024.
Rustavi Azot, EBRD sign $65 million green loan
Rustavi Azot and the European Bank for Reconstruction and Development (EBRD) signed a $65 million green loan agreement in October 2025, aimed at modernizing Georgia’s largest mineral fertilizer producer. The financing package will support a comprehensive upgrade of the company’s production facilities, enabling Rustavi Azot to reduce energy consumption, lower emissions, and adopt more resource-efficient technologies in line with international environmental standards.
According to the agreement, the investment will fund the modernization of key production units and the installation of new equipment to improve operational efficiency. A central component of the project includes establishing a new LDAN (Low-Density Ammonium Nitrate) production line, which will help the company expand its product range and strengthen its competitive position in regional and export markets.
Construction Cost Index up 4.7% YoY
Geostat reported that the Construction Cost Index increased 4.7% YoY in September 2025, driven by higher wages (+19.2%) and equipment costs (+5.3%). Residential construction saw a 7.5% annual rise, while non-residential and civil construction grew 5.9% and 1.7%, respectively.
Silk Road Forum 2025 held in Tbilisi
The Tbilisi Silk Road Forum 2025 was held in late October, bringing together more than 2,300 delegates from Europe, Asia, and the Gulf, as well as investors and business representatives. The agenda focused on trade, connectivity, logistics, and regional corridor development, positioning Georgia as one of several hubs along emerging Europe–Asia routes.
Discussions and side meetings centered on expanding transport links, improving transit conditions, and exploring new investment opportunities in infrastructure and logistics. Participants from more than 70 countries used the forum as a platform for networking and advancing cooperation on projects that connect markets across the wider region.
UAE-based real estate company opens office on back of $6.5 billion investment announcement
In October, Abu Dhabi-based real estate company Eagle Hills opened its Tbilisi office, located in the newly renovated historic building of the former Rustaveli Cinema. Georgian officials say that Eagle Hills is prepared to invest over $6 billion in Georgia, hailing it as “the largest investment in Georgia’s history.”
The projects include large-scale residential, commercial, and hospitality components. The construction of a “green city” in Krtsanisi and a “premium-class resort” in Gonio is set to begin in the coming months, with the Georgian state holding a 33% stake in the project. According to officials, the development will include around 16,000 homes and apartments, hotels with more than 1,400 rooms and apartments, as well as commercial and recreational zones.
First announced in January and hailed by some as a major investment for Georgia, the project has also drawn criticism over the lack of transparency around the state’s involvement in the deal, as well as environmental concerns and claims that estimated returns on the investment have been inflated.
Government moves to enable full ban on single-use plastics
In November, the government announced plans to introduce a comprehensive ban on single-use plastic items, including bags, utensils, and packaging. The measure aligns national standards with EU environmental directives and will involve a phased transition for businesses.
The explanatory note of the proposed amendments highlights severe environmental concerns within the country. International studies indicate that Georgia’s consumption of single-use plastics is critically high, with the UNDP estimating that 613.5 million units of single-use plastic items are consumed annually in Georgia—equivalent to 3.9–5.9 thousand tons.
Unemployment drops to 13.3% in Q3
According to figures released by GeoStat, Georgia’s unemployment rate declined to 13.3% in the third quarter of 2025 — a drop of 0.5 percentage points compared with the same quarter last year.
Key labor market figures for Q3 2025 include:
– Employed persons (salaried): 975.3 thousand — up 0.1% YoY.
– Self-employed persons: 418.4 thousand — down 3.3% compared with Q3 2024.
– Unemployed persons: 213.7 thousand — down 5.4% YoY. Employment rate (share of population employed): 47.3%, up 0.2% YoY.