Foreign Direct Investments (FDI) in Georgia amounted to $346.6 million in the second quarter of 2017, which is 14.3% less than the adjusted data for the same period of the previous year, according to a report published by Geostat.
In the first half of 2017, FDI in Georgia amounted to $751 million, which is 5.5% less y/y.
Azerbaijan is the largest investor country in Georgia. This is primarily connected to the Shah-Deniz pipeline construction project. In the first six months of 2017, Azerbaijan invested $224 million in Georgia, which is 20% less than in the previous year.
In the first six months of 2017, Georgia's largest investors were:
Azerbaijan - $224 million, 20% decrease y/y
Turkey - $120 million, 35% increase y/y
UK - $112 million, 13% increase y/y
The Netherlands - $63 million, 178% increase y/y
US - $29.3 million, 15% increase y/y
Panama - $29 million, 1% increase y/y
China - $17.1 million, 1325% increase y/y
Other countries - $150 million, 33% decrease y/y
Two offshore financial zones were included in the list of Georgia’s largest investors of 2017. Offshore zones are often used for reinvestment reasons by business firms.
Some of the large Georgian companies are registered in the European Union, therefore their turnover is also perceived as a foreign investment. The reinvestment level reached $355 million in the first half of 2017, accounting for 47% of total foreign investment in the period.
The most popular sector for foreign investment was transportation and communications, which received $271 million in the first half of the year. Construction followed with $125 million in total foreign investment. FDI in the energy sector amounted to $25.9 million, a 63% decrease y/y.