INVEST IN GEORGIA

Connecting East to West

Georgia has a wealth of investment and development opportunities for those looking to open new markets

Agateway between East and West, Georgia is a politically stable investment destination with sound macroeconomic environment, backed by prudent fiscal, monetary and financial policies with low and fair taxation for business including aerospace investors with maintenance, repair and overhaul activities.

Georgia has developed a feasibility study for an MRO project in the country. With a market of 5,395 aircraft that can be sought for MRO facilities in Georgia the feasibility study has shown positive results. A four bay, 9,000 square meter hangar, will need an investment of $32 million to be constructed. It is designed for four narrowbody aircraft to be maintained at the same time. The aim is to take 3% of this 5,395 aircraft market share and serve 162 aircraft from Europe and the Middle East. In accordance with the feasibility study, the payback period for the project is eight years and the IRR stands at 12%. Invest In Georgia plays the role of moderator between foreign investors and the Government of Georgia, ensuring that the investor gets different types of updated information and has a means of effective communication with the Government bodies.

Georgia has an Association Agreement with the European Union, establishing a long-term foundation for EU-Georgia’s political association and economic integration. Georgia and the European Community signed a Common Aviation Area Agreement on 2 December 2010. This agreement provides a modern framework and high standards for a wide range of aviation issues, such as passenger rights, air traffic management, economic regulation, competition issues or social aspects. Today, Georgia has a young, skilled and competitively priced labor force and easy access to materials. It also has centres for customized training which can provide short-term courses per an investor’s request.

In aerospace relevant materials, Georgia is rich in deposits of copper, manganese and lead ore. In addition, some other raw materials such as plastic, steal, aluminium, nickel and lithium are available in neighboring countries with which Georgia has 0% import tax.

With access to markets totalling 2.3 billion people and no Customs Duties, Georgia has a Deep and Comprehensive Free Trade Area (DCFTA) with EU.

Georgia provides the shortest transit route between Western Europe and Central Asia. Transit networks running through Georgia can bring goods from China to Europe in 10-15 days instead of 45 days along traditional routes.

For its geographical position, access to markets, highly trained cost competitive labour force, attractive business policies and taxation, Georgia is a desirable place to locate aviation businesses and Invest In Georgia is here to help you make the most of this business friendly country. l

“We are trying to use all the avenues available. We believe that before the next show, we’ll have specific investors. We will be glad to attend the next MRO Europe as well.”

Mikheil Khidureli, CEO, Invest in Georgia

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l For further information contact David Tavlalashvili, Head of Investment Department at dtavlalashvili@enterprise.gov.ge