Georgia Showed up in Davos; What’s Next?
07 February, 2013
Georgia Showed up in Davos; What’s Next?
In the second half of the year, Georgia expects results of its attendance at the reputable World Economic Forum of Davos -2013. Skeptics doubt it.
After the shift of power in fall of 2012, Georgia decided to tick itself at the snobbish global economic forum that brings together around 2500 top business leaders, international political leaders, selected intellectuals and journalists to discuss the most pressing issues facing the world yearly in the Swiss mountain resort Davos. Davos - 2013 held
on January 23-27 was no exception fixing traditionally high participation charges. For example the only entrance ticket costs USD 71 thousand per person plus at least USD 156 thousand for participating clubs for private discussions. Notwithstanding high expenses, Georgian delegation headed by Prime Minister Bidzina Ivanishvili, a billionaire and the richest Georgian businessman, left for Davos to get in touch with the world economic policy-makers personally and put Georgia in a favorable light for potential investors.
Although, Ivanishvili had a number of interesting meetings with European officials, shaking hands with his Russian peer Dimitry Medvedev and invitation to Russian dinner caught the attention of media most of all: as a matter of fact, this was the first hand-shake of Georgian and Russian top officials after terminating of political relations in August of 2008 when Russia routed Georgia. Amiable hugging of Ivanishvili with George Soros did also attract some attention.
After his arrival from Davos, Giorgi Kvirikashvili, Minister of Economy and Susutainable Development, reported to media that results of very interesting meetings [that were invisible to outsiders ] with private companies and investments funds who expressed desires to invest in Georgia will be tangible in the second half of the year.
According to Kvirikashvili, they met with JP Morgan, Meridian Capital, and Blackton. Talks were conducted on high technological projects with Philips, Intel and Indian-based Tata. Philips made some suggestions that will be revealed in the second half of the year. Some groups took an interest in Georgian metallurgy and tourism; specifically hotel construction. Several groups of investors appear intent to participate in Tskaltubo development project. JP Morgan was negotiated to invest in the upcoming Investment Fund Georgian government intends to set up to attract private investments and deliver cheaper credits to small business.
Presentation of this Investment Fund expected to attract USD 1 billion this year, was actually planned in Davos; however, it was canceled ultimately, which disappointed Georgian economic analysts, who had been expecting launching of the Fund since the end of 2012.
“ Davos was the best place for launching the Investment Fund, however, it did not take place,” Irakli Lekvinadze, an economic analyst, said in the interview to Georgian Journal. “The sooner this project will be launched, the better, for there is much talk that something is done but we cannot see what is done actually.”
He approves the fact that Georgian delegation attended Davos even if it was quite costly, because in fact, Davos is a rostrum to show yourself and build up contacts that lays ground for future investment projects. Lekvinadze does not rule out that investors mentioned by Georgian government can really come to Georgia, attracted mainly by the personal trust in Ivanishvili. On the other hand, investors interested in Russian market that seems to open up soon to Georgia again may be enticed to invest here.
Ditrich Muller, co-founder of Georgian Investment Group, seems skeptical that Davos results may come true in the second part of the year. The impending second tide of economic crisis in Europe makes him wary. Moreover, the sluggish Georgian Stock Exchange leaves fewer opportunities to attract serious fishes.
“The stock market bubble is inflated again, leading economic including Chinese that is the global locomotive in fact shrunk, European leader Angela Merkel warned this year will be difficult and how are we supposed to attract investors here while our stock exchange is half-dead?” Muller wonders.
On the other hand, he finds governmental policy of elaborating potential investment projects far below par. Otherwise, government would not have gone so far to chase investors. “There is around GEL 8 billion on deposits at Georgian banks that means people do not see opportunity to invest. Banks in their turn, avoid crediting economy due to its high risks and this money lays futile. Government should work out very clear projects where the money can be invested and I believe local investors - owners of those GEL 8 billion will invest in them,” Muller said.
Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
19.02.2019
20.02.2019
USD
1
USD
2.6404
2.6498
EUR
1
EUR
2.9908
2.9977
GBP
1
GBP
3.4130
3.4246
RUB
100
RUB
3.9898
4.0023
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6498
EUR
1
EUR
2.9977
GBP
1
GBP
3.4246
RUB
100
RUB
4.0023
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28