About BatumiInvest, Why Batumi? Project Proposals for Investments

1. DOING BUSINESS IN BATUMI
2011

2. CONTENT
Batumi Miracle
About Batumi Investment Agency (BIA)
Why Batumi?
Economic Snapshot
Business Rankings
Project Proposals

3. BATUMI MIRACLE

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. 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. WHY BATUMI?
7
REASONS TO
INVEST IN
BATUMI

7. Strategic Geographic Location
Batumi is a bridge
connecting several
important economic
regions with more
than billion people,
including European
Union, CIS
countries, Turkey and
the Caucasus Region.

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. 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. Low and Simple Taxes
In 2005 Georgia enacted a new tax code, which introduced
lower, flat-tax rates and significant procedural and institutional
innovations.
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. Cheap & Competitive Labor Force
o The most liberal Labor Code worldwide
o Labor Freedom Index (99.9) > world average (60)
o Leading Adult Literacy Rate indicator (2006 Human Development Report)

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. A Unique Culture and Cosy
Environment 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. ECONOMIC SNAPSHOT

15. ECONOMIC SNAPSHOT

16. ECONOMIC SNAPSHOT

17. ECONOMIC SNAPSHOT

18. ECONOMIC SNAPSHOT

19. ECONOMIC SNAPSHOT

20. ECONOMIC SNAPSHOT

21. BUSINESS RANKINGS
“Ease of Doing Business 2011” (IFC/World Bank) – 12th
place (out of 183 economies)
“Corruption Perception Index 2010”
(Transparency International) – 68th
place out of 178 economies
“Index of Economic Freedom 2011” (Heritage
Foundation) – 29h place (out of 179 economies)
2011
“The Enabling Trade Index 2010” (World Economic • Long-term foreign and local currency Issuer
Forum) – 37thplace Default Ratings (IDRs) – 'B+„.
• Short-term foreign currency IDR - 'B„
• Country Ceiling - 'BB-„ ( upgraded from 'B+ )

22. PROJECT PROPOSALS –
Free Industrial Zone
 Located in Khelvachauri district near Batumi along the road of
strategic importance by which the Caucasus is connected to Eastern
Europe
 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 developed
transport infrastructure
 At least 2 500 new jobs
 Development of 15 ha territory
within 2 years
 Leasing price 1 GEL/0.57 USD for
m2 per year

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. 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. Batumi Investment Agency (BIA)
74, Gogebashvili str., 6010 Batumi, Georgia
Tel: +995 422 27 72 09
Mob: +995 93 23 32 32
E-mail: lputkaradze.mofea@gmail.com
Skype: lelaputkaradze