The National Statistics Agency of Georgia has published an update on FDI in 2022, according to which the United Kingdom, Spain and the Netherlands invested the most in the country.
According to the agency, the total volume of foreign direct investment made in Georgia in 2022 is $2,097.9 million, which is 1.7 times higher than the corresponding figure for 2021. And 38% of these investments come from the UK, Spain and the Netherlands.
The largest volume of foreign direct investment was made in the sphere of finance and insurance and was $538 million – 25.6% of the total. In second place is the real estate sector ($366.5 million), and in third place is water supply and waste management ($197.2 million).
What is foreign direct investment?
Foreign direct investment (FDI) is a long-term business investment made by a foreign entity (non-resident). For an investment to be considered as a foreign direct investment, a non-resident person in a local company (for example, a foreigner in a company registered in Georgia) must own at least 10% of the shares or authorized capital of the enterprise.
Foreign direct investment includes the creation of a new enterprise, the purchase of a stake in an existing enterprise, the acquisition of real estate, the reinvestment of profits, lending, the provision of goods and services, etc.
Foreign direct investment is of great importance for the economic development of the country, as it increases production and employment, provides an influx of foreign currency, knowledge and technology.
Source : Jam News