Israeli businessmen invest in Georgia

Israeli businessmen have invested $300 million in Georgia and still keep on investing. According to the estimate of the Chamber of Commerce, the change of power in Georgia will in no way influence the attitude of the Israeli business elite towards the country. Some even claim that, due to close ties between Ivanishvili and a number of Israeli businessmen, the activities of Israeli businessmen in Georgia will only develop.

Currently, the bulk of Israeli investments in Georgia are in real estate and are mainly aimed at Tbilisi. Israel is governed by analytical reports which indicate the present shortage of hotel rooms in Georgia, which is going to exascerbate by 2015. Israelis are planning to build hotels in Georgia with a total capacity of 10 000 rooms. All in all, hotels with 3500 rooms will be located in Tbilisi. Some Israeli capital is being invested in housing construction in the Georgian capital. The Israelis know that, despite the relatively cheap labour costs, a one-bedroom apartment in Tbilisi costs 100 thousand dollars, while monthly rents amount to $800 on average. Such high prices can help a quick return of invested capital.

At the moment Israel is starting to consider the possibility of investing in joint exploration and development of Georgia's mineral resources, given that large deposits of non-ferrous metals are not being explored today in Georgia. However, at the moment it is hard to tell in what conditions Israeli businessmen might be involved in this development and whether these plans are going to be implemented at all.

Adapted from vestnikkavkaza.net