Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694824603433.pdf (Georgia)
Invest in Kakheti - Investment Climate and Potential KAKHETI - An Investment Destination of Choice Basic Details • 16% of the country's total area • Population (2019) - 312 500 • Administrative center - Telavi • Number of municipalities - 8 Competitive facts of the region • Attractive geographical location – proximity to Tbilisi and border with Azerbaijan • A major wine producer and wine tourism destination in Georgia • A major producer of agricultural goods in Georgia • Access to healthcare and education services in the region • All levels of the educational system – State university, vocational colleges • Access to gas, electricity, water and internet in most areas of the region • Skilled and competitively priced labor force Named as the cleanest region of Georgia (2019) Sustainable Economic Development Growing Regional GDP (million Gel) 2,500.0 2,000.0 1,500.0 1,693.1 1,755.3 1,530.6 1,000.0 6.0% 10.6% 3.7% 1,971.1 12.2% 2,144.8 8.9% 500.0 0.0 2013 2014 2015 2016 2017 Nominal (mln.
GEL) Real growth (%) 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Diversified Nominal GDP in 2017 Other sectors 20% Agriculture, forestry and fishing 32% Health and social work 6% education 6% Transport and Communication 1% Public administration 11% producing goods 5% trade 4% construction 3% Industry 12% Source: National Statistics Office Rapid Growth of Economic Activities TOP sectors based on 2017 statistics: Total turnover sectors – manufacturing, construction, trade, agriculture Goods and services produced by business - manufacturing, construction, trade, agriculture Active registered businesses – trade, manufacturing, hospitality and real estate, agriculture Source: National Statistics Office 23553.6 26068.6 29993.9 34156.9 38206.8 goods and services produced mln lari 2013 2014 2015 2016 2017 1425.5 908.6 1018.3 963.4 1104.4 total turnover mln lari 2013 2014 2015 2016 2017 Foreign Direct Investments 20,000.0 10,000.0 11,028.6 8.0% 15,796.3 16,118.6 43.0% 2.0% 80.0% 58.0% 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% -60.0% -80.0% -100.0% 6,179.7 3,903.8 -75.0% 0.0 2013 2014 2015 2016 2017 FDI(thousand $) FDI growth (%) Source: National Statistics Office Top FDI sectors: Agriculture, Hospitality and Real Estate, Energy, Manufacturing Top investor countries  Russia  China  EU countries  Turkey  Iran Perspective Investment Sectors Agriculture and Food Processing Hospitality and Real Estate Energy Sector and Natural Resources Why to Invest in Agriculture and Food Processing SHARE OF KAKHETI IN TOTAL PRODUCTION 2017(%) Georgia Kakheti 36 64 35 65 15 85 52 48 82 18 77 23 40% of total agricultural land of Georgia Fertile soil and favorable climate conditions Clean and Safe environment Source: National Statistics Office Viticulture and Winemaking By 2018 year  Income gained through the grape production – 288 mln lari  Export from Georgia reached 86.2 mln bottle-203 mln $ - 70% of total export is from Kakheti Rapid growth of grape production(thousand tons) 235  Kakheti is a unique ancient region with unique
 Kakhetian traditional method of winemaking +70%  8000-year tradition of wine making in Qvevri vessel 129.5 124.3 150.3 134.8 111.0  75% of total country production  Rapidly growing areas of vineyards  15 appellations of origin of wines 2013 2014 2015 2016 2017 2018 Source: National Statistics Office Investment opportunities in Agriculture Wine and spirits Organic production Food processing Livestock farming Aquaculture • 8000 years of continues wine making tradition • Unique wine • • making method Special micro- climate zones and fertile soils Bio wine producing possibilities • • Rich and pesticide free soil Arable land resources • Increased production due to currently ongoing projects, nuts, walnuts, almonds, pistachio, olives have the best processing potential nowadays • The biggest area of agricultural land, especially – arable lands • • Access to clean mountainous water Currently unused resources Why to Invest in Hospitality and Real Estate Number of international visitors has been growing rapidly 503416 +17% 593778 291143 354239 2015 2016 2017 2018 Top Reasons of visit:  Holiday-wine, adventure tourism  Religion  Medical and wellness tourism  Economic activity Already-Operational International Hotel Chains include Radisson, Holliday Inn Source: GEOSTAT, national tourism administration Top countries by international arrivals in 2018 25% 32% 2% 2% 3% 3% 3% 5% 3% 6% 17% russia azerbaijan ukraine germany iran emirates kazakhistan israel turkey poland other Hospitality and Real Estate Investment Opportunity Medical and wellness resorts Four season resorts Conference towns Hunting tourism Gambling  Wine Heritage – home to both ancient wine making techniques and artifacts and high- quality modern wines  Cultural Heritage – predominantly early Christian-era monuments, art, architecture, and living culture (food, music, dance, and other cultural traditions)  Nature and Adventure – dramatic landscapes, hiking, trekking, biking, and winter sports, home to
 numerous natural heritage and cultural monuments - 37% of the country’s protected areas – 2 national parks and 16 different categories of protected areas  Rapid increase in the number of new hotels in recent years.
The existing number of hotel bed is 4,109 with additional 1,733 hotel beds coming soon Why to Invest in Energy Sector Investment Opportunities in the Solar Energy and the Natural Resources  In the southern part of Kakheti there are 250-280 sunny days in a year, which is approximately 6000-6780 hours  Currently unused resources  Deposits of Mineral Resources Administration of the State Attorney KAKHETI – The Destination of Your Future Investment Thank You N16, Erekle II Ave. Telavi, Georgia project@kakheti.gov.ge Natia.Tatishvili@Kakheti.gov.ge