Georgia's Strategic Leap: Prime Minister Kobakhidze's vision for economic growth and connectivity

After serving as a member of the Georgian Parliament for eight years and chairman of the ruling Georgian Dream party from 2021 to 2024, Irakli Kobakhidze assumed the role of Prime Minister at a pivotal time in Georgia’s development. Broad-based economic expansion has accompanied strategic plans to diversify the economy, driven by key sectors including real estate, finance and tourism. On the international stage, Georgia’s positioning as a key connectivity hub in the Middle Corridor has continued to gain momentum, backed by government investment in large-scale infrastructure. And global relations remain critical to national development, with strong bilateral ties with the UAE providing a platform for investment and growth.

In this interview, the Prime Minister sets out his agenda for the coming years, outlining the policy framework designed to maintain the country’s robust economic performance, priority sectors for collaboration with UAE partners and his administration’s efforts to position Georgia as a destination for both tourists and investment.

We have multiple priorities, and one of the key priorities is Georgia's economic growth. Since 2021, the average economic growth in Georgia has been more than 9.5%; it was 9.5% last year, and we started this year with 11.1%. This means we are keeping this trend of economic growth consistent. That is one of the country's key goals.

We have very liberal economic and tax policies. Georgia offers a favourable environment for business and investment, which supports the country’s economic development. We are doing a lot to further promote economic development and invest in strengthening Georgia’s connectivity functions, which is another one of our key priorities. Georgia's strategic location adds to the strength of our connectivity function, and we use it to unlock our economic potential as much as possible. We want to strengthen this function of Georgia within the framework of the Middle Corridor.

We are investing strongly in infrastructure for that purpose. We are constructing new highways that will span the entire country, and by the end of this year, the motorway from Tbilisi to Batumi will be completed. This highway is planned to extend to the Azerbaijani and Armenian borders, but it was originally designed with regional connectivity in mind.

Additionally, we are investing in railway and airport infrastructure and will soon begin construction of a new international airport in Tbilisi. The current airport's capacity is around four million passengers, but the new one is designed to accommodate 18 million. The number of visitors to Georgia is increasing steadily annually, and the new airport will address this demand. We aim to establish Georgia as a hub for tourism and other forms of connectivity.

We are also expanding the capacities of the second-largest airport, Kutaisi International. We have specific projects designed for that, which were initiated last year. Seaport infrastructure is another priority for investment, and we plan to build a new deep-sea port in Anaklia, on the Black Sea. This is in cooperation with a Chinese and Singaporean consortium and other partners. The Tbilisi Dry Port has also successfully commenced operations.

Over the past four years, we have more than doubled our nominal GDP. In 2020, GDP per capita stood at approximately $4,250, and by 2024, it had risen to around $9,000. We are committed to sustaining this positive economic trajectory.

This growth is positively impacting the social conditions of our citizens too, with the number of employed individuals consistently increasing. In the last three years, we have improved employment rates by creating 190,000 new jobs overall. In a country like Georgia, with a population of 3.7 million, it reflects a positive trend in terms of employment. 

Economic development is one of the key priorities, but we have other priorities to focus on as well, such as strengthening Georgia's international position and Georgian partnerships. We are conducting many visits to our neighbours and the broader region. We visited all our southern neighbouring countries last year, including Romania, Azerbaijan and Turkey, as well as the Central Asian countries Kazakhstan, Uzbekistan and Turkmenistan. These visits all contribute to strengthening economic cooperation and enhancing Georgia's role as a connectivity hub between countries.

I have visited the UAE twice: first for an official state visit, and then for the signing of the memorandum of understanding regarding EMAAR Group’s $6.6 billion investment. This investment will boost economic development, representing at least 1.5% of annual GDP. We look forward to the development of this project, especially around Tbilisi and Batumi. We are proud of having excellent cooperation, strong partnerships and shared values with the UAE. The deal makes our ties stronger, and the UAE is an excellent example of a nation from which we can learn.

Nowhere has the world seen the kind of progress achieved by the UAE in the last few years, marked by dramatic and impressive changes. To achieve this progress, we have to examine the key pillars of the reforms and changes they implemented. We are grateful for the excellent cooperation we have with them. It is crucial to study all aspects of their progress, given the remarkable leadership of the UAE, which has successfully realised its national vision. The UAE’s leaders are deeply committed to their people and have worked tirelessly to open up the country to development; we must learn from that. We will continue to enthusiastically promote our cooperation.

In terms of cooperation, there is a significant interest in various areas, especially for investment. Tourism is a key area of Georgia's development, and we are happy to see that numbers are increasing permanently. We are partnering across various sectors to drive progress and will continue working on improvements.

There is huge scope for investment activities in the energy sector, with a focus on hydro, wind and solar energy. Georgia is rich in these resources, and we have a clear plan to steadily increase our electricity capacity to eight gigawatts by 2028 and ten gigawatts by 2030. This will ensure Georgia becomes self-sustainable in terms of electricity supply, while the Black Sea Submarine Cable Project will enable us to export electricity to European countries and position Georgia as a digital hub.

Other advantageous sectors to invest in include tourism and agriculture, which are traditional pillars of the economy. Real estate is a growing sector in the Georgian economy too. Meanwhile, there has been a rapid increase in growth in the IT sector since 2021, and we want to further strengthen this sector of the Georgian economy. We are covering all of these sectors and are focused on sustaining Georgia's progress. 

We have a very liberal economic policy, which includes straightforward taxation policies. Under Georgian legislation, there are only a few taxes, with low rates and minimal bureaucracy. We are doing well in keeping corruption low based on different indexes—better than several EU member countries. All these different conditions create a good space for potential investors to conduct their business activities. We regularly develop specific investment projects to offer to investors from various countries. Georgia provides a favourable and profitable environment for launching economic activities. We have tailored opportunities in sectors like IT, which benefit from lower taxation.

We are also trying to further improve our investment climate. We have a clause in the Georgian Constitution that states that taxes cannot be increased without a referendum. There has been no single referendum conducted so far, which shows huge stability and investor protection. This also assures investors that there will be no tax increases or new taxes without a vote. 

The government is also investor-friendly, and we have frequent meetings with both current and potential investors. It is also easy to approach government officials. We have built good conditions for different types of businesses to flourish in Georgia. 

Georgia is a peaceful country with a clear vision, and we are committed to maintaining stability within it. We are one of the safest countries, as reflected in various global indices. Peace, safety and stability are key priorities for us. Georgia is a beautiful country that deserves to be promoted.

We are a very open country for tourists, investors and all kinds of guests. They are always welcome in Georgia, whether for a holiday or for investment. They will always be treated not as tourists or businesspeople, but as guests. Georgia's hospitality is one of the key features of Georgian culture that we are proud of.

I started as a lawyer by profession. Before I became Prime Minister, I taught at the Tbilisi State University and worked at the United Nations Development Programme. In 2014, I was invited to join as the executive secretary of Georgian Dream. After that, I managed the 2016 parliamentary elections, before becoming party leader in 2016. Since then, I have served as the Chairman of the Parliament of Georgia.

I have a diverse background, but my focus remains on being fully committed to my role and the responsibility I have towards my country and its people. While holding a high position may present various interests, the key and ultimate priority should always be to serve the country. I try to ensure success and development. Addressing challenges effectively and avoiding problems for Georgia creates pride and satisfaction.

I invite everyone to visit Georgia as we take great pride in our hospitality, and I am confident that everyone will enjoy our country. Whatever the purpose of their visit, I urge them to come. Once people experience Georgia, they often return.