BAKU, Azerbaijan, Sept.10
By Tamilla Mammadova – Trend:
The volume of foreign direct investment (FDI) in Georgian Adjara reached $51.9 million in the second quarter of 2020, Trend reports via the Adjara government.
Compared to the same period last year, the volume of FDI increased by 35 percent.
During the reporting period, construction ($28.9 million) and energy ($15.5 million) are characterized by high investment activity in Adjara.
According to the Adjara government, as of the first half of 2020, FDI in Adjara amounted to $73.2 million, which is 15 percent more than in 2019.
As reported, against the backdrop of global challenges, despite the economic difficulties, the existing business in Adjara not only maintains its position in the market but also reinvests and expands its activities. It should be noted that in addition to traditional countries, about 35 percent of investments to Adjara come from the Netherlands, Austria, and Switzerland.
Most of the investments in the second quarter in Adjara were formed at the expense of equity capital and reinvestments. In particular, the share of equity investments in the total investment volume is 90 percent, and the reinvestment ratio is 7 percent.
As of the second quarter of 2020, the registered capital is $46.5 million. This indicator is a direct indicator that business in Adjara is expanding its activities using its financial resources and capital.
The Adjara government started the process of active privatization this spring. Also, several initiatives have been taken at various stages in the spread of the novel coronavirus to improve the investment environment and stimulate the economy. In particular, investors are given an additional 12-month grace period to fulfill their obligations.
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