Foreign Direct Investment in Georgia: Trends, Impact, and Future Prospects

Abstract

It is undeniable that foreign direct investment plays an important role in the development of countries around the world, and Georgia is no exception. It can be said that Georgia is a country in the post-Soviet space that stands out for its policy towards foreign direct investment. Since gaining independence, foreign direct investment has become an important factor in its economic development, and to this day, dynamic and statistical analysis of the volume of FDI in the country does not lose its importance.

As a small, open economy strategically located between Europe and Asia, Georgia relies on foreign direct investment to support infrastructure development, energy projects, logistics, tourism, and financial services. Although foreign direct investment inflows to Georgia have fluctuated in line with global trends and regional dynamics, they continue to play an important role in strengthening economic resilience, improving the business environment, and deepening the country's integration into global value chains.