Azerbaijan invests $ 240 mln in Georgia

By Azernews

By Leman Mammadova

Azerbaijan has been named a "number one investor in Georgia" in 2018.

Last year, Azerbaijan invested $ 240 million in Georgia's economy, the preliminary report of the National Statistics Office of Georgia said, AZERTAC informs.

Azerbaijan's share in direct investments in the economy of Georgia was 19.5 percent. Although it is 1.9 times less than in 2017, Azerbaijan has maintained its leadership.

Among the countries most investing in the economy of Georgia, Great Britain holds the second place with $ 203.7 million and the Netherlands - the third place with $ 167.9 million.

In general, the total amount of foreign investments in Georgia amounted to $ 1.232 billion last year, which is 34.9 percent less than in the previous year.

The main reasons for the decline were the completion of major pipeline projects, the transfer of property rights from non-residents to residents and decline in liabilities of non-resident direct investors in some companies.

In the reporting year, most investment in Georgia was made in the financial sector ($ 279.9 million), transport ($ 209.9 million) and energy ($ 157.2 million).

Azerbaijan and Georgia maintain high-level relations in all spheres, especially in economic field. Two countries have already taken initiatives for global projects in the region together for a long time. Close bilateral ties play a key role in the development of regional cooperation.

The trade turnover between Georgia and Azerbaijan amounted to $1.1 billion in 2018. The share of Azerbaijan in the total trade turnover of the neighboring country made 8.7 percent last year. Azerbaijan became the third largest trading partner of Georgia after Turkey and Russia in 2018.

Georgian exports to Azerbaijan amounted to $ 502.7 million in 2018. In turn, Azerbaijan exported goods worth $ 586 million to Georgia.

Georgian exports to Azerbaijan include cement, locomotives and other railway vehicles, mineral and chemical fertilizers, mineral waters, strong drinks, glass and glass wares, and pharmaceuticals, among other things. Azerbaijani mainly exports to Georgia oil and petroleum products, natural gas, electricity, plastic, cement, anhydrite and gypsum binders.

The trade turnover between Georgia and Azerbaijan amounted to about $ 97.6 million in January 2019.

In 1995-2018, Georgia invested $ 93.8 million in Azerbaijani economy and Azerbaijan invested $ 3 billion in Georgia. Since 2012, Azerbaijan is in the first place in terms of investments in Georgia. More than 300 Georgian companies registered in Azerbaijan, about 650 Azerbaijani investment companies, especially SOCAR, operate successfully in Georgia.

Azerbaijan and Georgia have taken initiatives for global projects in the region together for a long time. Close bilateral ties play a key role in the development of regional cooperation. The both countries broadly cooperate in regional energy development, transportation and economic partnership projects such as Baku-Tbilisi-Ceyhan pipeline (BTC), Baku-Tbilisi-Erzurum, Southern Gas Corridor, Kars-Tbilisi-Baku railway (BTK), the TRACECA and BSEC (Black Sea Economic Cooperation).