Georgia Emerging as the Startup Hub of the Caucasus

TEHRAN (Iran News) Moqimi discussed how the harsh sanctions have made international connections for Iranians more challenging and emphasized the need for specific strategies to maintain and strengthen these relationships. She pointed out that in recent years, the Iran-Georgia Chamber of Commerce has been exploring various strategies to safeguard their economic and commercial relations under these difficult conditions, with the main goal of keeping the economic ties alive. She noted the ongoing impact of politics and economics on each other.

One of the key priorities for the Chamber, she stated, is to continuously review strategies for preserving and expanding international economic relations, sharing these with members, and examining the current ecosystem.

She emphasized that today, innovation and startup activities are receiving special attention globally. Georgia has become an attractive destination for entrepreneurs due to its favorable tax policies, easy access to international markets, and government support for innovation and investment.

Referring to the 2019 World Bank report, Moqimi highlighted Georgia’s ranking as 6th in terms of ease of doing business. Additionally, the 2023 Startupblink index listed the country among the top 100 startup ecosystems globally.

Moqimi identified the key players in Georgia’s startup ecosystem as the government, growth centers and accelerators, investors and investment funds, and universities and research centers. She mentioned that starting a business in Georgia comes with several incentives, such as low taxes, a fast company registration process (which can take as little as two hours), access to international markets, and low operational costs.

These incentives are also available to foreign investors, she noted, adding that approved business plans from designated authorities could benefit from the outlined incentives. Furthermore, businesses can register their brands in Georgia. However, like other countries, there are challenges for businesses entering the market, including a lack of venture capital, which could restrict foreign investment, a limited domestic market, and access to a limited pool of skilled labor.

Moqimi also discussed export regulations for startups in Georgia, explaining that businesses can either establish a new company in Georgia or open a branch of a foreign company.

She described Georgia not just as a destination but also as a gateway, especially considering its strong position in transit and transportation. China, the UAE, and India have made significant investments in the region and have developed its ports.

Looking ahead, Moqimi forecasted that Georgia’s market, given its available resources, has the potential to become a key player in the region’s economic landscape.