1. The Covid 19 crisis and the Russian war have transformed foreign policy. Could you please give us some insight into Georgia’s current foreign policy?
The war in Ukraine has altered global security in the world as well as in the South Caucasus region. This region had already been shattered by the recent war in Karabakh, armed incidents, the pandemic, as well as through the increase of Russian military presence in the Black Sea, not to mention that 20% percent of the Georgian territory is still under the Russian occupation.
We stand strongly by the position that any attempt to intervene on the sovereign choice of countries to define their foreign policy directions is totally unacceptable. Peace and stability are the strong precondition to development and long-lasting prosperity in the region.
Having this in mind, Georgia has been promoting the so-called peaceful neighbourhoods initiative, which envisions the participation of the South Caucasus countries; Armenia, Azerbaijan and Georgia. Through this initiative Georgia hopes to be a broker in the normalisation of regional relations. We also vividly see the importance of Western engagement as the key to peace, stability and swift economical development in the region.
The Georgian foreign policy is mainly based on the historical wish and desire of Georgia to become an EU member, because we consider that Georgia, with its historical heritage, belongs to Europe. In order to achieve membership, Georgia continues to make progress and takes steps to achieve maximum harmonisation with the EU legislation as well as a high level of institutional integration.
On March 3rd 2022, Georgia officially applied to the European Union; on June 23rd 2022 the European Consul formally recognised Georgia’s European perspectives, opening the door to Georgia’s entrance to the EU. This took our relations with the EU to a completely new level, transforming it into a new institutional framework.
2. Talking of regional politics and geo-strategy, how could Georgia become one of the main partners of the UAE in the Caucasus Region?
The UAE is very active in its bilateral relations with the South Caucasus countries. When it comes to Georgia it is important to take into consideration our location. Historically, Georgia has always been at the centre of the region.
The relationship between the UAE and countries in the South Caucasus region is mainly based on economical cooperation. Taking into account the current political situation, Georgia’s importance as an economical partner has increased and as such, the country offers wider perspectives of cooperation with the UAE.
The role of the South Caucasus as a transit region connecting East and West is undeniable. Nowadays it has even strengthened.
3. The IMF projects Georgia’s growth to reach 9% in 2022. What can we expect from Georgia’s economy in the coming years?
The average real GDP growth from January to September 2022 was 10.2% according to the national statistics office of Georgia. These numbers are very positive and have increased Georgia’s appeal in terms of international investments.
Economic cooperation between Georgia and the UAE is increasing in terms of trade, of Foreign Direct Investment and more. The recent visit of the Prime Minister of Georgia to Abu Dhabi in November 2022 will only enhance our relationship.
4. The UAE and Georgia are currently in negotiations over a Comprehensive Economic Partnership Agreement (CEPA). Prime Minister Irakli Garibashvili recently met Sheikh Mohamed bin Zayed Al Nahyan, president of the UAE to discuss cooperation between the countries and prospects of boosting trade ties and investment. What is the collaborative potential of such an agreement for both countries in terms of trade? What are the best investment opportunities for UAE companies wanting to enter Georgia?
Georgia currently enjoys preferential trade regimes with countries that have over 2.3 billion customers. The diversification of our export markets and products as well as the enhancement of preferential trade agreements are primary objectives for the government of Georgia.
In December 2020, the ministers of economy of the two countries made a decision to start negotiations on a CEPA, to promote economic trade and investment relations between Georgia and the UAE. On May 9th 2022, the document on the terms of negotiations of CEPA was signed. The first round of negotiations was launched in September 2022, and the second round took place in Dubai from the 6th to the 8th of December 2022.
This CEPA agreement will allow Georgia to benefit from a free trade regime with the UAE, a big market and international trading hub. The results of the first round of negotiations were very positive and as such, it gives hope to both sides that we’ll be completing this agreement very soon. Our aim is to have it finalised in the first quarter of 2023 which would make it a record-breaking negotiation for Georgia and for the UAE; concluding such a complex agreement in such a short period of time will be a huge achievement.
5. Which Georgian products or companies would you want to see in UAE?
The food industry is a sector we are looking into, we have a lot of naturally grown fruits and vegetables in Georgia. We are increasing our exports of citruses, apples, blackberries, tomatoes and more. Bottled mineral water and juices are another niche, Georgia is amongst the biggest countries in terms of natural water supply.
We look forward to welcoming Georgian IT companies in the UAE. Georgian manufacturing companies can also use the UAE as a trading hub to reach other regions.
Moreover, we look forward to welcoming UAE companies and investments in Georgia. Sectors that could be of interest to them are: manufacturing, food processing, energy, logistics, IT, BPO (Business Process Outsourcing), hospitality and real estate.
We are also trying to enhance B2B relations between the two countries. In September, the Federation Of U.A.E Chambers, the Chamber of Commerce of Georgia and the enterprise of the Ministry of Economy of Georgia “Produce in Georgia” decided to put in place a Georgia-UAE Business Council.
At the governmental level, in September 2021, we signed an “MoU (memorandum of understanding) on economical and technical cooperation” which laid the foundation of the “bilateral economical cooperation Comittee”.
We have made huge strides in our relationship with the UAE, at a government and business level. We look forward to signing 5 or 6 agreements next year.
6. Georgia received 1.8 million tourists in 2021. What is the tourism potential between Georgia and the UAE?
Georgia has become a very popular tourist destination for the people living in the UAE, there are 40 flights per week during summer which is the peak season. These flights go from Sharjah, Dubai and Abu Dhabi to Tbilisi, the capital city; to Kutaisi, the 2nd biggest city and to Batumi, one of the most popular Black Sea resorts. Air Arabia has continued providing flights between the two capital cities, which facilitates cooperation between the two countries.
On June 4th 2022, a visa free travel agreement for the holders of Georgian ordinary passports came into force, it has significantly increased tourism arrivals in both countries. Nowadays, there are many Georgian tourists visiting the UAE.
7. What is your final message to the readers of Khaleej Times? Why is it time to invest in Georgia? What would Emirati citizens love about your country?
Georgia’s government policy is to achieve maximum openness, transparency and regional/global integration. Georgia took a number of economic reforms targeting streamlining, liberalisation and the simplification of trade regulations.
Our country has one of the most liberal foreign trade policies in the world, it implies facilitated foreign trade regime and custom’s procedures, low import tariffs and minimal non-tariff regulations. Free trade zones and our access to the EU single market provide huge opportunities for companies investing in Georgia.
Georgia ranks 7th in the ease of doing business ranking meaning companies can be registered in a few hours, bank accounts can be opened very quickly in any foreign currency and managing your company is very easy and can be done online. Many government funds are assisting SME’s in various fields of activity.
Foreigners that come to Georgia are amazed by the country’s hospitality, safety and security, food and hotels. The banking system is based on international standards.
Georgia can be reached from any part of the world.
We have a subtropical zone in the western part of Georgia, desert, glaciers, skiing resorts, waterfalls and much more. You just name it, we have everything, on top of the hospitality of the local people!
