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DOING BUSINESS IN BATUMI          2011
CONTENTBatumi MiracleAbout Batumi Investment Agency (BIA)Why Batumi?Economic SnapshotBusiness RankingsProject Proposals
BATUMI MIRACLE
BATUMI INVESTMENT AGENCY (BIA)   Batumi Investment Agency (BIA) is the first point of contact for all   foreign investors....
BATUMI INVESTMENT AGENCY (BIA) Furthermore: • Facilitate visits by foreign investors, including organization of meeting wi...
WHY BATUMI?7    REASONS TO    INVEST IN    BATUMI
Strategic Geographic LocationBatumi is a bridgeconnecting         severalimportant     economicregions     with    moretha...
Investor-Friendly Environment               Batumi‟s safe and friendly environment plays               decisive role while...
Liberal Trade Regimes• Low tariffs• Streamlined border clearance  procedures• MNF Tariffs with WTO members• GSP with the U...
Low and Simple TaxesIn 2005 Georgia enacted a new tax code, which introducedlower, flat-tax rates and significant procedur...
Cheap & Competitive Labor Forceo The most liberal Labor Code worldwideo Labor Freedom Index (99.9) > world average (60)o L...
Abundance of Natural Resources              Batumi is rich with diversity              of      natural     resources.     ...
A Unique Culture and CosyEnvironment to Live and Work             Since ancient times Georgia has preserved its unique    ...
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
ECONOMIC SNAPSHOT
BUSINESS RANKINGS“Ease of Doing Business 2011” (IFC/World Bank) – 12thplace (out of 183 economies)                        ...
PROJECT PROPOSALS –            Free Industrial Zone Located in Khelvachauri      district near Batumi along the road ofst...
PROJECT PROPOSALS –    Ski Resort Development                              Master plan prepared by the                   ...
PROJECT PROPOSALS –        Free Touristic Zone                               Kobuleti is a seaside health resort on      ...
Batumi Investment Agency (BIA)74, Gogebashvili str., 6010 Batumi, GeorgiaTel: +995 422 27 72 09Mob: +995 93 23 32 32E-mail...
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Doing Business in Batumi 2011

  1. 1. DOING BUSINESS IN BATUMI 2011
  2. 2. CONTENTBatumi MiracleAbout Batumi Investment Agency (BIA)Why Batumi?Economic SnapshotBusiness RankingsProject Proposals
  3. 3. BATUMI MIRACLE
  4. 4. BATUMI INVESTMENT AGENCY (BIA) Batumi Investment Agency (BIA) is the first point of contact for all foreign investors. It is the sole government agency responsible for promoting and facilitating foreign direct investments in Batumi and Ajara as a whole. BIA was launched in early 2011 and it acts as a “one- stop shop” for potential investors. The main goal of our agency is to promote Batumi’s investment climate and investment opportunities abroad.
  5. 5. BATUMI INVESTMENT AGENCY (BIA) Furthermore: • Facilitate visits by foreign investors, including organization of meeting with government officials, suppliers, potential partners and business chambers, among others; • Provide assistance and informational support to foreign businesses before, during and after their entry to Batumi; • Increase awareness of Batumi as an investment destination; • Provide up-to-date information on the legal, tax and tariff frameworks of the city as well as other information necessary for making investment decisions; • Offer investment opportunities to potential investors and arrange site visits for them.
  6. 6. WHY BATUMI?7 REASONS TO INVEST IN BATUMI
  7. 7. Strategic Geographic LocationBatumi is a bridgeconnecting severalimportant economicregions with morethan billion people,including EuropeanUnion, CIScountries, Turkey andthe Caucasus Region.
  8. 8. Investor-Friendly Environment Batumi‟s safe and friendly environment plays decisive role while considering it as an investment destination. Investment-Promotional Regime is widespread all over the country and is highlighted in the law on “Investment Activities and Guarantees”.
  9. 9. Liberal Trade Regimes• Low tariffs• Streamlined border clearance procedures• MNF Tariffs with WTO members• GSP with the USA, Canada, Switzerland, Norway and Japan• GSP+ the EU and Turkey• FTA with CIS countries (except Russia)• FTA with Turkey• ISA and DTAA with various countries Batumi an attractive production platform to serve diverse markets.
  10. 10. Low and Simple TaxesIn 2005 Georgia enacted a new tax code, which introducedlower, flat-tax rates and significant procedural and institutionalinnovations. The taxation framework in Georgia is as follows: 20% flat personal income tax decreasing to 15% (2014) 18% VAT 15% corporate income tax 5% interest income and dividend tax rates decreasing to 0% by 2014 1% (max) property tax 0% dividend income tax on dividends from publicly-traded equities 0% tax on interest income from bank deposits and publicly-traded debt securities 0% capital gains tax 0% social insurance or similar taxes 0% wealth tax
  11. 11. Cheap & Competitive Labor Forceo The most liberal Labor Code worldwideo Labor Freedom Index (99.9) > world average (60)o Leading Adult Literacy Rate indicator (2006 Human Development Report)
  12. 12. Abundance of Natural Resources Batumi is rich with diversity of natural resources. Abundance of fresh water and hydro-mineral deposits grant Batumi competitive advantage while comparing to other investment destinations. In spite of such diversity, wealth and healing qualities, only few mineral waters are being utilized commercially.
  13. 13. A Unique Culture and CosyEnvironment to Live and Work Since ancient times Georgia has preserved its unique culture and traditions. So the tradition of hospitality, warm climate of the city and beautiful landscapes makes Batumi attractive place to live and work.
  14. 14. ECONOMIC SNAPSHOT
  15. 15. ECONOMIC SNAPSHOT
  16. 16. ECONOMIC SNAPSHOT
  17. 17. ECONOMIC SNAPSHOT
  18. 18. ECONOMIC SNAPSHOT
  19. 19. ECONOMIC SNAPSHOT
  20. 20. ECONOMIC SNAPSHOT
  21. 21. BUSINESS RANKINGS“Ease of Doing Business 2011” (IFC/World Bank) – 12thplace (out of 183 economies) “Corruption Perception Index 2010” (Transparency International) – 68th place out of 178 economies“Index of Economic Freedom 2011” (HeritageFoundation) – 29h place (out of 179 economies) 2011“The Enabling Trade Index 2010” (World Economic • Long-term foreign and local currency IssuerForum) – 37thplace Default Ratings (IDRs) – B+„. • Short-term foreign currency IDR - B„ • Country Ceiling - BB-„ ( upgraded from B+ )
  22. 22. PROJECT PROPOSALS – Free Industrial Zone Located in Khelvachauri district near Batumi along the road ofstrategic importance by which the Caucasus is connected to EasternEurope Area of FIZ = 15 ha 8 km from Batumi Sea Port 3 km from Batumi Airport 4 km from Railway 15 km from Georgian-Turkish border Probable leasing term = 49 years 15 ha of land with developedtransport infrastructure At least 2 500 new jobs Development of 15 ha territorywithin 2 years Leasing price 1 GEL/0.57 USD form2 per year
  23. 23. PROJECT PROPOSALS – Ski Resort Development  Master plan prepared by the HOK Planning Group  Plan aims to maximize the opportunities of the site for a four-season resort  Goderdzi Pass, located two hours drive from Batumi  At an elevation of 2000m, the mountains are snow- covered from November to April.  The wilderness setting offers the visitor unique experiences, fresh-air and world-class scenery.
  24. 24. PROJECT PROPOSALS – Free Touristic Zone  Kobuleti is a seaside health resort on Black Sea just 20 min from Batumi  Average temperature in August is +25 C  Resort Priority-warm and humid climate  Development area of 11.3 ha for 30 hotels  Investment range 1-3 million USD  Completion of works within 15 months since signing the contract.  Free Land  Free Hotel Master Plan  No Profit and Property taxes for 15 years  Fully Provided engineering utility networks and corresponding outdoor infrastructure such as electricity, gas, water and new roads
  25. 25. Batumi Investment Agency (BIA)74, Gogebashvili str., 6010 Batumi, GeorgiaTel: +995 422 27 72 09Mob: +995 93 23 32 32E-mail: lputkaradze.mofea@gmail.comSkype: lelaputkaradze

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