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Georgia-Iran Chamber of Commerce: Major Iranian Investor Alters His Mind to Invest Several Millions of USD in Georgia

Rahim Abachi, director general for Georgia-Iran Chamber of Commerce, talks about consequences of restrictions on sales of land to foreign citizens.

Since the country banned sales of land to foreign citizens, one of the major Iranian investors altered his mind to invest several millions of USD in the country, he said.

This restriction directly hits investments and any foreign investor, who wanted to make investments in agrarian sector. A lot of investors have changed mind to make investments in this country and decided to implement their projects in other countries. All these moves directly hit the Georgian economy, Abachi said.

“Georgian economy is oriented on investments, mainly. Government and people of Georgia should decide tow beneficial this decision is”, Abachi said.

One of the Iranian investors wanted to build a cattle-breeding farm in Dmanisi and invest several millions of USD in the project implementation, but the mentioned restrictions made him change his mind, Abachi noted.

“They has already selected a land plot and planned to buy it. Negotiations were in final stage, but the project implementation was suspended. Investors, who want to invest several millions of USD in the country, but cannot have a land in ownership, avoid taking risks”, Abachi said.

Moreover, the private sector representatives assert that the Law on Land does not enable commercial banks to take lands in ownership and then sell them. As a result, commercial banks will refuse to credit agrarian sector.

The banking sector has also submitted its position on Land Law to the Business Ombudsman of Georgia. Lasha Papashvili says commercial banks may face problems with crediting the agriculture sector.