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FDI Grant – The State Program

FDI Grant – The State Program

1. Introduction

The new state program “Mechanism for Promoting Foreign Investment Projects” (FDI grant in Georgia) was approved by the government on November 19, 2020. 

The program will be implemented by the agency Enterprise Georgia, who had been working on developing the program for past several months.

The goal of the program is to promote the growth of foreign direct investments in country, the inflow of technology and the creation of new jobs.

2. Requirements of FDI Grant Program in Georgia

The FDI grant incentive applies to following economic sectors:

  • Production of electrical and electronic engineering products;
  • Manufacturing of aircraft parts and components
  • Manufacture of vehicles and equipment, as well as their parts;
  • Export of business services/ business process outsourcing (BPO);
  • Developing Warehouses and logistic centers;
  • Aircraft repair and maintenance (MRO);

The eligibility criteria includes:

  • An international company participating in the program will have obligation to invest at least 10 million GEL (~3 mln USD) and create minimum 150 jobs.
  • For companies operating in the field of business process outsourcing (BPO), the minimum amount of investment equals 5 million GEL (~1.5 mln USD), with a creation of at least 200 new jobs.

3. Benefits of FDI Grant in Georgia

Upon fulfilment of the investment obligation, Companies will get cashback of up to 1 million GEL (~300 thsd. USD). This means that when an investor arrives and invests and employs a certain number of people, he receives a grant from the state of GEL 300,000 (~ 100 thsd. USD) of GEL 1 million, which he spends for a specific purpose, for example, in training workers and providing light infrastructure. 

4. Conclusion

Companies, interested in applying to the program, have to send an application to Enterprise Georgia along with their investment project business strategy. A relevant agreement is concluded between the agency and the investor, by which the investor undertakes the investment commitment and starts the implementation of the project, the maximum term of which is 39 months.

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If you need assistance on FDI Grant Program in Georgia and interested in investing in Georgia please contact us.

Source: Invest in Georgia; Ministry Of Economy And Sustainable Development of Georgia

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