Spain Becomes the Largest Investor in Georgia

Geostat released updated statistics on foreign direct investment. According to the document, a total of $ 568 million was imported into the country in the first quarter of 2022. Compared to 2021, this amount is 4.3 times more. Moreover, this volume of investments is a record high since the start of statistics accounting.

The majority of the funds came from Spain, totaling $ 196 million. According to information shared by Geostat, the largest Spanish investor is the business "Aqualia Georgia," which is 100% owned by the major participant in the water supply industry, Aqualia.

The deal was completed in the first quarter of 2022. Spanish water management company Aqualia has invested $180 million by purchasing 80 percent of Georgian Water and Power, a leading company in the water supply market of Georgia and the South Caucasus. In total, GWP's assets are valued at $ 225 million and Aqualia also plans to repurchase the company's remaining stake in 2025-2026.

Aqualia itself operates water supply systems in 17 countries and ranks third in Europe with this indicator. The deal between the parties became known on December 31, 2021, and officially ended in the first quarter of 2022.

The ranking of top investor countries is as follows:

1) Spain - $ 196 million, an increase of 98,000%;
2) UK - $ 87.2 million, down 1.4%;
3) Turkey - 67.1 million dollars, an increase of 130%;
4) China - $ 36.4 million, an increase of 12,030%;
5) Netherlands - $ 33.6 million, an increase of 500%;
6) US - 31.7 million dollars, investments in the same period last year were minus 59.8 million;
7) Marshall Islands - $ 18.3 million, an increase of 154%;
8) Malta - 10.2 million dollars, investments in the same period last year were minus 11.9 million;
9) Germany - 9.2 million dollars, an increase of 26%;
10) Other countries - 78.5 million dollars, an increase of 17%.

The UK is the second-largest investor in the country, which is probably due to the fact that the three largest financial holdings in Georgia are legally British companies. We are talking about TBC, Bank of Georgia, and Capital of Georgia. The rating also includes offshore zones, including Malta and the Marshall Islands, which are also used by Georgian companies for reinvestment.

$ 318 million of the $ 568 million FDI was reinvestment in existing companies, accounting for 56% of the investment.

In the first quarter of 2022, the largest foreign direct investment was made in the energy/water supply sector and amounted to 236.4 million. USD, which is 41.6 percent of total foreign direct investment. The second place is taken by the financial sector - 111.1 million. USD (19.5 percent), while the third is the real estate sector with 81.3 million USD (14.3 percent).

$ 19.1 million in foreign investment was allocated in construction and $ 12 million was invested in tourism.