Industry Voices: Georgia, a hidden gem for high-return investments and green energy potential

I see Georgia as a highly lucrative investment location, and we are always looking for investors.

A major reason for the country's success is that foreign markets aren’t paying close attention. There’s a prevailing perception that Georgia is a small country, which is a misconception. In fact, our banks are delivering some of the highest returns on equity in the world. We’re talking about returns as high as 35%—figures you won’t easily find elsewhere.

In Georgia, 80% of electricity is generated from renewable sources, placing us third globally, behind only Norway and Brazil. This figure is just the beginning—we have barely begun to tap into the full potential of our green energy capacity. 

There is a huge opportunity here for partners from the UAE, for example, who come from an energy background and understand what is happening in this space to come and help us develop. With support, we could unlock our potential on a much grander scale.

Our mission is to support Georgia's economy by funding commercially viable projects in knowledge-based industries. DFG focuses on non-traditional sectors over traditional ones; we are a development-oriented financial institution aiming to diversify the economy.

Our organisation does not compete with Georgia’s commercial banks. Instead, we identify gaps where banks are reluctant to invest and step in to support those projects. In essence, we try to make non-bankable businesses bankable.

DFG often acts as a bridge connecting foreign investors to Georgia. While foreign companies can visit and meet with ministries, identifying the right local partner for actual business execution is critical, and that is where we come in.

If investors have specific project ideas, our presence brings the weight of a state-backed, commercially-minded partner. This often provides added comfort to foreign investors.

We balance the interests of companies, suppliers and customers. We prepare and adopt secondary legislation in the energy sector. In the past five years, we have adopted over 50 such acts, including tariff calculation methodologies and technical documents like grid network codes.

In the Doing Business ranking methodology, one criterion was ‘Getting Electricity,’ where we ranked in the top 10 in recent years. As a regulator, we manage this process, ensuring ease of electricity access for new customers, including during construction projects. Improving this system has been one of our priorities.

Opportunities in the energy sector are extensive, as Georgia’s electricity and gas tariffs are competitive in the region. Our tariffs are lower than in Turkey, Armenia and all EU countries, providing a competitive advantage for energy-intensive industries.