Forbes Georgia in English – Issue N36 • Forbes Georgia

We are pleased to present the 36th English issue of Forbes Georgia. This issue features a variety of articles on topics such as business, entrepreneurship, and economics. We hope you enjoy reading it as much as we enjoyed putting it together.

◾ Cover Story: A Vision for Georgia’s Energy Independence

Gross Energy Group (GEG), founded by Anguli Tkebuchava and led by his sons, Davit and Irakli, has become a cornerstone of Georgia’s energy infrastructure. The company has spearheaded projects totaling approximately 1,000 MW in capacity, with investments exceeding two billion dollars. With its first hydropower plant, Tashiskari HPP, set to launch in 2025, the company stands at the threshold of a new chapter in its history.

Leaderboard

◾ Georgia’s 2024 Rankings

As is tradition in our start of the year issue, Forbes Georgia presents Georgia’s positions in ten of the most significant international indexes last year. Some of these are economic indexes, while others rank countries by their level of corruption, democracy, and media freedom. A high-quality functioning democracy and a free press are essential prerequisites for a country’s stability and long-term economic development.

◾ The Top 10 State Enterprises by Number of Employees

According to the National Statistics Office of Georgia, 920,000 people were employed in Georgia at the end of last year, 321,000 (35%) of whom were employed in the public sector. Public sector employees mainly work in executive bodies, legal entities of public law (LEPLs), and non-entrepreneurial (non-com-mercial) legal entities (NNLEs) established by the government.

People working in state-owned enterprises are also considered public sector employees. While the total number of employees in state-owned enterprises is unknown, it is estimated to be at least 50,000.

◾ The Top 10 Programs Funded by the State Budget

According to the draft law on the State Budget of Georgia for 2025, budgetary expenditure will amount to ₾27 billion. This sum will be distributed across various programs implemented by state institutions, mainly ministries. Allocating expenditure through programs is a practical approach, as each program has specific objectives to be achieved by utilizing budget funds. However, questions remain about the planning and execution of these programs in Georgia, as effectiveness often takes a back seat to ensuring full utilization of allocated funds. This practice is increasingly seen as outdated and inefficient.

◾ The Top 10 Largest Taxpayers

The following is a ranking of Georgia’s ten largest real estate companies based on their assets. The companies are ranked according to the total amount of property tax they paid in the period 2019-2023.

◾ The Top 20 Largest and Most Profitable Construction and Development Companies

The Construction Sector is vital to the Georgian labor market. It employs 117,900 people, 8.8% of the total Georgian workforce. The industry accounts for 12% of the economy’s total output and has recently expanded rapidly.

Opinion

◾ Lost Allies: How U.S. Sanctions Threaten Georgian Officials
By: Vakhtang Partsvaniya

The United States’ recent sanctions against Georgian officials mark a significant escalation in Washington’s response to democratic backsliding and human rights abuses in the country. On December 19, 2024, the U.S. Department of the Treasury sanctioned Vakhtang Gomelauri, Georgia’s Minister of Internal Affairs, and Mirza Kezevadze, Deputy Head of the Special Tasks Department, for their roles in orchestrating violence against protesters, journalists, and political opponents. The announcement came just days after visa restrictions were imposed on a broader group of Georgian officials linked to undermining democracy and weeks after the United States suspended its Strategic Partnership with Georgia.

◾ A Turning Point in Georgian History and the Role of Business in the Country’s Peaceful Democratization
By: Giorgi Tskhadaia

The level of brutality shown by law enforcement officers against demonstrators during the ongoing protests has reached alarming levels. According to the Public Defender of Georgia, their representatives visited 352 people in temporary detention centers and hospitals between 28 November and 11 December. Of these, 226 people spoke of ill-treatment, and 157 had visible bodily injuries.

◾ A Geopolitical Earthquake in Syria
By: Aka Zarqua

In 2017, Vladimir Putin visited the Khmeimim military airfield in Syria to proclaim a “glorious victory against terrorists” on the back of a two-year military operation. “If the terrorists raise their heads again, we will deal them the kind of blows they have never experienced before,” the Russian president stated. Putin’s words were but a distant memory as the events of the past ten days unfolded in Syria.

Reporting

◾ Tbilisi Loves the EU – Interview with the Winning Team of DemTech
By: Kakhi Chakvetadze

From January 17 to 19, a dynamic hackathon focused on democratic technologies took place in Tbilisi. The event attracted over 100 participants, each eager to contribute their skills and ideas. Ultimately, these individuals formed 8 diverse teams, ready to collaborate and innovate in the pursuit of solutions that promote democratic values and engagement.

◾ Trump Inauguration Beats Funding Record as Donors Line Up

During Donald Trump Inauguration on January, donors lined up to contribute to the president-elect’s swearing in ceremony and accompanying events. According to the New York Times, Trump’s inaugural committee has raised more than $170 million, easily beating the previous record set at Trump’s first inauguration eight years ago.

Interviews, Profile Features and Business Stories

◾ The Fire is Lit, the Game Has Begun
By: Anina Tepnadze

Electric vehicles boast numerous advantages but face a critical challenge: lithi-um batteries are prone to spontaneous combustion. To address this, the Georgian-American company Elven Technologies has developed a groundbreaking material that can endure 2,000°C flames for hours and extinguish fires caused by battery ignition. The company is now developing its products in Estonia, and the world’s largest automakers are awaiting the results of its work.

◾ A Trusted Partner for Employers
By: Anina Tepnadze

Founded only a year ago, Helio AI is already changing the rules of the game in the labor markets around the world. The platform employs artificial intelligence to streamline recruitment and uses situational gaming to assess candidates’ soft skills. According to founder and COO Nini Mosiashvili, Helio AI’s rapid progress is driven by its team of professionals and users who help refine the technology every day.

◾ She Leads Peace
By: Kakhi Chakvetadze

Peace requires more than belief; it demands action. Inspired by this ethos, Georgians Sopiko Gugava and Marina Kutubidze founded She Leads Peace in the U.S. combining their professional expertise and a shared vision of women at the forefront of progress and peace. In this interview, Sopiko and Marina share how their backgrounds shaped She Leads Peace and their vision for its future.

Economy

◾ Georgia’s Role in Sanctions Evasion: A Transit Hub for Russia?
By: Vakhtang Partsvaniya, Erekle Pirveli

Georgia’s Delicate Geo-political positioning presents a dual Challenge: balancing the economic benefits derived from trade with Russia against the need to align with western sanctions policies.

◾ Construction and Real Estate Trends in Georgia
By: Beso Namchavadze

The Construction and Real Estate Sectors form a critical pillar of Georgia’s economy, with their performance often reflecting and influencing broader economic trends. A boom in these sectors can drive nationwide economic growth, while a downturn can have the opposite effect.

◾ The National Bank, Elections, and Currency Reserves
By: Egnate Shamugia

The Post-election monetary policies pursued by the National Bank of Georgia (NBG) have become a subject of discussion among political actors due to a reduction in reserves caused by large-scale foreign exchange interventions.

◾ A Comprehensive Guide for Individuals and Companies Planning to Relocate to Georgia in 2025
By: Gela Barshovi

In this article you will find a comprehensive guide on the steps, procedures, timing, and essential information for
business registration in the Republic of Georgia.