The impact of construction, infrastructure, and real estate development projects on Georgia’s economic development was discussed at the 30th Economic Forum, organized by Business Insider Georgia.

At the event, the Minister of Infrastructure of Georgia, Revaz Sokhadze, and representatives of the construction and development sectors delivered presentations.

The participants were addressed by Shota Berekashvili, Chair of the Economic Policy Committee, who spoke about the country's economic development, support for business, and the role of the legislative branch in fostering growth.

“The construction and real estate sector is a significant part of our economy, accounting for approximately 18% of GDP. These sectors are characterized by high productivity, which is directly reflected in the incomes of those employed within them. Therefore, their proper development is of critical importance to our country”, - Shota Berekashvili stated.

According to him, Parliament has supported numerous legislative initiatives aimed at ensuring the stable development of infrastructure and real estate development sectors.

Berekashvili noted that Georgia’s ongoing and planned infrastructure projects include construction of the East–West Highway corridor; development of high-speed railway connections; expansion of port infrastructure; construction of a new airport. 

He emphasized that these projects collectively form a multimodal logistics system, positioning Georgia as a key component of the transit corridor connecting Asia and Europe.

“By creating modern and integrated multimodal infrastructure, we will significantly strengthen the region’s role within the Middle Corridor transport and logistics system. This strategic corridor is important not only economically but also from the perspective of regional security. Successful implementation of infrastructure projects is one of the main prerequisites for sustainable development and economic progress”, - he said.

The Committee Chair also highlighted the close connection between infrastructure development and growth in the construction and real estate sectors. As an example, he pointed to the recent entry of major international development companies into the Georgian market. According to Berekashvili, their increasing interest in Georgia demonstrates the attractiveness of the country’s investment climate and contributes to the development of tourism and growth in foreign visitor numbers.

“Georgia has already established itself as an attractive tourist destination, but one of the challenges remains attracting higher-spending visitors. A tourist in Georgia spends on average between USD 640 and 700 per visit, while in Dubai and Abu Dhabi the figure reaches approximately USD 2,400. The arrival of large international development companies will provide a substantial boost to the tourism sector. We believe tourism revenues could significantly increase and potentially double, which would directly contribute to economic growth and improve the well-being of those employed in the sector”, - he noted.

Berekashvili also identified the shortage of qualified professionals as a major challenge facing many companies.

"In this regard, both the Parliament and the Government of Georgia are taking significant steps, including plans to establish new vocational colleges and retraining centers. As a result, human capital development and workforce reskilling will be carried out in sectors where productivity levels are currently relatively low. One such area is the construction and development sector, where ensuring the availability of a qualified workforce remains one of the key challenges today”, - he stated.

According to him, the implementation of major international infrastructure projects and the entry of experienced international companies into the Georgian market also facilitate the transfer of modern technologies, management expertise, and professional know-how.

“Our primary objective is to make businesses more efficient and competitive while significantly increasing productivity. Georgia’s economy needs more foreign direct investment and greater capital inflows, which will help businesses reduce their dependence on credit financing. Parliament has also adopted legislation providing tax incentives for companies investing in research and development. Such initiatives encourage innovation, enhance competitiveness, and support the long-term development of the economy”, - Berekashvili stated.

The forum was attended by Members of Parliament Levan Machavariani and Zurab Rurua, as well as representatives of the executive branch, the banking sector, construction and development companies, and industry experts.