The increase was observed in the production value of the business sector as well. In 2024, production value equaled 90.5 billion GEL, which is 16.3 percent more year-on-year.In the 2024, large businesses generated 67.7 percent of total turnover, while medium-sized businesses generated 15.8 percent, and 16.5 percent was generated by small businesses. A distribution was slightly different in case of total production value: 46.8 percent was on large businesses, 25.5% - on medium, and 27.7% - on small businesses.In 2024, total purchases of goods and services carried out by enterprises equaled 114.9 billion GEL (year-on-year 5.4 percent more), while the purchase of goods and services for resale amounted to 71.4 billion GEL (year-on-year 0.2 percent more).In the 2024, the average number of persons employed in business sector equaled 866.2 thousand, which is year-on-year 5.2 percent more. Out of the total number of persons employed, 43.2% were female and 56.8% were male.Large businesses employed 39.4% of total number of persons, while 20.3% were employed by medium, and 40.3% - by small businesses. The total number of employees amounted to 801.6 thousand (year-on-year 3.9% more).The total personnel costs of enterprises equaled 19.9 billion GEL (year-on-year 15.3 percent more).In the 2024, average monthly remuneration of employed persons equaled 2 024.4 GEL (197.2 GEL increase year-on-year) while remuneration of employed women specifically was 1 601.4 GEL(156.2 GEL increase year-on-year). Average monthly remuneration of employed persons by size of enterprises is as follows: Large business - 2 297.4 GEL Medium business - 2 443.8 GEL Small business - 1 437.5 GEL In the 2024, the trade sector (including repair of motor vehicles and motorcycles) has the highest share (34.4 percent) in the total turnover in the business sector, followed by arts, entertainmentand recreation with 33.5 percent share, manufacturing - with 7.9 percent, construction - with 6.6 percent, transportation and storage - with 4.6 percent, and other sectors - with 12.9 percent share.In the 2024, trade (wholesale and retail trade, repair of motor vehicles and motorcycles), manufacturing, and human health and social work activities led business sector by number of employees (accordingly with 29.0 percent, 11.3 percent and 9.3 percent share). However, enterprises engaged in transportation and storage (8.6 percent), construction activities (8.0 percent), information and communication (5.9 percent), and accommodation and food service activities (5.3 percent) had also a significant share.

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Turnover increased about 4.1 times in manufacturing and about 2.0 times in healthcare and social work activities. Turnover also increased in the professional, scientific and technical activities (78.8 percent), financial and insurance activities (74.5 percent), administrative and support service activities (31.6 percent), information and communication (22.3 percent), other services (15.0 percent), accommodation and food service activities (9.3 percent), and transportation and storage(0.8 percent) sectors.The production value (of goods and services) of non-profit institutions amounted to 2 720.6 million GEL, 15.9 percent higher compared to the previous year.The biggest shares in production value was generated by organizations in following sectors: other services (25.4 percent), arts, entertainment and recreation (22.1 percent), healthcare and social work (16.5 percent), education (14.6 percent), professional, scientific and technical activities (6.4 percent), and water supply, sewerage, waste management and remediation activities (5.3 percent). 62.5 thousand people (51.9 percent women and 48.1 percent men) were employed in nonprofit organizations in 2024. Compared to 2023, this figure has increased by 4.2 percent.Education sector held the biggest share (24.8 percent) in employment, followed by the similar share of arts, entertainment and recreation (24.8 percent), then followed water supply, sewerage, waste management and remediation activities (13.9 percent), healthcare and social work (12.7 percent), while other sectors held the rest of 23.8 percent.Out of all employed, 62.1 thousand were hired, which is 4.1 percent more compared to 2023.

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The financing package will include €10 million for new automation, efficiency and maintenance projects, €15 million to refinance a portion of short-term debt, aligning repayment profiles with the long-term nature of recent renewable energy investments, and €15 million to support working capital, providing a more stable and resilient financing base for the company.The project will strengthen inclusivity by providing training through a ‘digital operator school’, launching an internship programme with local universities, and introducing childcare solutions to support gender inclusion and better work-life balance.It will also deliver environmental benefits through investment in solar energy and the procurement of recyclable and certified packaging materials. These steps will reduce emissions, improve resource efficiency and support circular-economy practices.Natalia Zhukova, EBRD Head of Food and Agribusiness, said: “It is wonderful to see our partnership with Kervan Gıda continue to flourish, as this latest collaboration further enhances the company’s financial competitiveness. This strengthened position will also provide new momentum for Kervan Gıda to advance its climate goals.”Devrim Kılıçoğlu, CEO of Kervan Gıda, commented: “Our longstanding partnership with the EBRD is a key driver in our transformation journey. This financing strengthens our foundations and provides the resources to accelerate our sustainability and inclusive goals, ensuring that our growth benefits both our employees and the wider community.”The EBRD is one of Türkiye’s key investors, with more than €22 billion committed through 499 projects and trade finance limits since 2009, largely in the private sector.

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According to the economic activity the highest monthly earnings were observed in the following fields:• Information and communication – 4 176.5 GEL (increased by 5.4 percent compared to the corresponding period of the previous year);• Financial and insurance activities – 3 732.2 GEL (increased by 2.5 percent);• Construction – 3 467.7 GEL (increased by 17.7 percent);• Professional, scientific and technical activities – 2 995.3 GEL (increased by 4.3 percent)In 2Q2025, the average earnings for women equaled 1,769.5 GEL, while for men, they were 2,655.8 GEL. The annual earnings growth amounted to 179.3 GEL (11.3%) for women and 242.3 GEL (10.0%) for men. In most sectors, men’s average monthly earnings were higher than women’s.In 2Q2025, the average monthly earnings of employees in the business sector increased by 212.2 GEL (10.1%) and equaled 2 317.6 GEL. According to the economic activity,the highest monthly earnings were observed in Information and communication (4,234.4 GEL, increased by 4.3% compared to the corresponding period of the previous year) and Construction activities (3,472 GEL, increased by 17.7%).In 2Q2025, compared to the same quarter of the previous year, the average monthly earnings of employees in the non-business and financial sector increased by 197.1 GEL (10.8%) and amounted to 2,024 GEL. According to the economic activity, the highest monthly earnings were observed in the Financial and insurance activities.

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The export of IT technologies in Georgia has reached a record level, exceeding 2 billion lari. Experts consider tax incentives, enjoyed by companies with the "Virtual Zone Resident" status, as the primary factor driving the industry’s growth. Despite rising trends in the sector, challenges remain, the overcoming of which could accelerate its development in the country. Shorena Kopaleishvili, Chairperson of the Association of Georgian Virtual Zone Persons, discusses the current state of the IT sector, trends, and challenges.What has been the dynamics of IT technology exports in Georgia in recent years?– The export of IT services from Georgia has grown significantly in recent years. A particularly notable increase began in 2022. Looking at the dynamics of the last few years, it’s worth noting that export revenues quadrupled between 2021 and 2023, reaching 892 million USD in 2023, with a total turnover of 5.1 billion lari. Thanks to this rapid growth, the ICT sector took eighth place among the largest economic industries in 2023. However, in 2024, the income of Georgia’s IT sector decreased by approximately 12% compared to the previous year. This was due to objective reasons, as nearly all business sectors faced various challenges in 2024. Nevertheless, the first quarter results of 2025 exceeded all expectations: during this period, the sector’s external revenue reached 266 million USD, a 70% increase—or 110 million USD more—than the previous year. The primary market for Georgia’s IT service exports remains the United States of America.In your opinion, what has contributed to such growth in the sector?– The growth and development of the sector were initially supported by tax incentives. Since 2022, the growth rate accelerated due to the relocation of international companies and IT specialists to Georgia, prompted by the Russia-Ukraine war. Additional incentives include affordable internet costs, relatively low living expenses compared to other attractive locations, and the country’s favorable geographical position. Moreover, local companies are actively adapting to global trends, further enhancing Georgia’s investment appeal.In my view, tax incentives remain the key factor in the attractiveness of IT business in Georgia. Specifically, when considering the context of benefits for virtual zone companies. The "Virtual Zone Resident" status offers unique opportunities for IT companies operating on Georgian territory. This status provides significant tax advantages, fostering both the development of existing companies and the establishment of new businesses in the technological sector. Virtual zone residents are fully exempt from profit tax on income derived from IT services provided abroad. This benefit is particularly crucial for fast-growing tech companies, allowing them to direct all profits toward development and expansion. Exemption from value-added tax (VAT) is another significant advantage. Companies do not have to pay the 18% VAT on services provided to foreign clients, enabling them to offer more competitive prices on the international market.How many international IT companies are registered in Georgia today, and what has been the dynamics of their numbers in recent years?– As of July 1, 2025, 38,525 entities are registered in the information and communication technology sector, of which 24,265 are active. The number of medium and large companies is around 200, with the rest primarily consisting of foreign individual entrepreneurs, a trend linked to migration effects. The share of IT companies of foreign origin in this statistic is significantly higher than that of local companies, accounting for approximately 80%.Interest in conducting business in Georgia in this field continues to grow. The interest in the virtual zone status also remains strong. Between January and July 2025 alone, this status was granted to 28 legal entities, which is a positive and encouraging trend for the sector.Do challenges remain for international IT companies in Georgia, and if so, what problems do tech companies face?– Despite rapid growth and positive trends, IT companies operating in Georgia encounter various structural and operational challenges. In my opinion, several key factors can be highlighted:1. Deficit of Qualified PersonnelThere is a noticeable shortage of mid- and high-level specialists on the market, particularly in areas such as software engineering, cybersecurity, and DevOps.A trend of "talent drain" is observed: a portion of highly qualified professionals opts for careers and high-paying positions abroad.Most specialists live and work in urban centers, confirming that, despite the potential for remote work, the sector remains highly centralized.2. Limited Local Market SizeLocal demand for IT products and services is limited, increasing companies’ dependence on external markets.3. Challenges in the Education SystemEducational programs at universities and vocational institutions do not always meet the real needs of the market. The imbalance between formal education and the private sector’s requirements significantly reduces the quality of professional training.4. Technological InfrastructureAlthough internet infrastructure in Georgia is actively developing, regional coverage and reliability issues persist.5. Regulatory and Legal EnvironmentForeign investors and companies note that Georgian legislation is insufficiently predictable and stable, especially in the area of tax regulations.6. Political and Geopolitical FactorsRegional security challenges and the risk of political instability encourage investors to exercise greater caution.7. Competition on the Global MarketGeorgia’s IT sector must compete with strong regional and international hubs such as Ukraine, Poland, and the Baltic states, where the workforce is represented on a larger scale.What prospects do you see for this sector despite the challenges? Will it continue to grow in the coming years?– The outlook is promising. Georgia’s IT sector is at a pivotal stage of development. The growing potential of its workforce, close collaboration with international partners, and the trend toward integration into global markets create a solid foundation for the country’s technological progress. With the right state policies, education reforms, and strengthening of business infrastructure, the sector can not only solidify its position in the region but also become a significant innovation hub.

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The increase was observed in the production value of the business sector as well. In the II quarter of 2025, production value equaled 23.2 billion GEL, which is 13.0 percent more year-on-year.In the II quarter of 2025, large businesses generated 68.1 percent of total turnover, while medium size businesses generated 14.9 percent, and 17.0 percent was generated by small business. A distribution was different in case of total production value: 46.8 percent was on large businesses, 24.1 percent — on medium, and 29.1 percent — on small businesses.In the II quarter of 2025, total purchases of goods and services carried out by enterprises equaled 31.0 billion GEL (year-on-year 9.3 percent more), while the purchase of goods and services for resale amounted to 17.8 billion GEL (year-on-year 4.6 percent more).In the II quarter of 2025, the average number of persons employed in business sector equaled 795.6 thousand, which is year-on-year 3.3 percent more. Out of the total number of persons employed, 44.1 percent were female and 55.9 percent were male.Large businesses employed 42.9 percent of total number of persons, while 20.4 percent were employed by medium, and 36.7 percent — by small businesses.The total number of employees amounted to 745.3 thousand (year-on-year 2.9 percent more) and the total personnel costs of enterprises equaled 5 284.0 million GEL (year-on-year 13.5 percent more).In the II quarter of 2025, average monthly remuneration of employed persons equaled 2 317.6 GEL (212.2 GEL increase year-on-year) while remuneration specifically for employed women was 1 783.5 GEL (147.2 GEL increase year-on-year). Average monthly remuneration of employed persons by size of enterprises is as follows: Large business — 2 466.9 GEL Medium size business — 2 741.8 GEL Small business — 1 823.3 GEL

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According to the Agency’s analysis, over 1,000 entities operated in the GPS services market in 2024, with a total market volume of GEL 2,181,758,521.2. The Herfindahl-Hirschman Index (HHI) was 990.4, indicating low market concentration. The Agency also evaluated Tegeta Motors LLC’s planned acquisition of control over GPS Georgia LLC, concluding that the change in the concentration index (ΔHHI) would be negligible, even if both acquisitions occurred. In the GPS and related device import market, 523 entities were active in 2024, with a total market volume of GEL 39,488,597. The HHI was 132.8, and the change in the concentration index (ΔHHI) was 2.5.Based on the market analysis, structure, and shares of the involved parties, the Agency determined that the concentration will not significantly affect competitionFYI: In 2025, the GCCA has approved 12 concentrations to date, while 2 cases remain under review.

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Based on its market analysis, the Agency identified eight companies that held a dominant position (market share exceeding 40%) in relation to 14 specific medicines. The investigation focused on the following companies: Global CBS LLC, Concept Pharma LLC, Bardi LLC, Nuvea Pharmaceuticals LLC, Rich Group LLC, Crocus Pharma LLC, Gea LLC, and BIH LLC.The investigation focused on whether price mark-ups ranging from 300% to 3,000% resulted from anti-competitive conduct by these dominant entities.The GCCA found that four of the companies abused their market dominance by imposing unfairly high prices on seven medicines. Unfair pricing was determined based on profit margins exceeding 30%, combined with additional mark-ups surpassing 20%, which were deemed unjustified. As a result, the four companies were fined a total of GEL 559,358, with individual fines calculated at up to 5% of each company’s 2024 annual turnover, proportionate to the harm caused.- Global CBS LLC- Oflab-Oz, Hyzine, Ioril -10 – Fine 249 144 GEL- Concept Pharma LLC – Floxazol - Fine 21 646 GEL- Rich Group LLC – Zinasen- Fine 77 936 GEL- Gea LLC - Biseptol 120 ml - Biseptol 480 ml - Fine 210 632 GELThe investigation revealed that the pricing structures for some of the medicines included costs unrelated to standard price formation, suggesting potential price inflation. These costs included: Expensive gifts (including gold jewelry); Entertainment at cultural and theater events; Informal stakeholder meetings; Conference and luxury hotel expenses in Georgia and Europe; Cosmetic and dental services; Legal sanctions and fines; Maintenance of luxury-class vehicles, among others.As part of the enforcement outcome, the GCCA issued a mandatory recommendation to dominant undertakings. They are expected to develop internal pricing policies that proactively prevent anti-competitive conduct, in line with the Agency’s guidelines. Prices must not be unfairly high, either in absolute terms or relative to alternative products or services. In cases where the GCCA identifies reasonable grounds for suspicion, a formal investigation may be initiated.The Agency also noted that the period under review preceded the implementation of Georgia’s reference pricing mechanism. Since its introduction, this mechanism has significantly reduced the possibility of inflated medicine mark-ups.

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The issuer will use the raised funds for the construction of a logistics center in Tbilisi.Investor demand for the bonds exceeded the volume of securities.“This is the 8th transaction since 2016, 7 of which were carried out in cooperation with TBC Capital. This is also the 7th transaction for TBC Capital on the Georgian securities market this year: this year we participated in an issue of more than 300 million GEL. TBC Capital is the market leader with a 68% share,” - Otar Sharikadze, Director of TBC Capital said.

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GCAP today announces that the transaction has closed and the cash proceeds of USD 70.4 million have been fully received. The use of proceeds, in line with GCAP’s 360-degree capital management framework, will be announced together with Georgia Capital PLC’s 2Q25 and 1H25 results, currently scheduled for release on 6 August 2025.As a reminder, GCAP announced its full exit from Georgia Global Utilities back in December 2021, and in accordance with the terms of the deal concluded during the same period, the Spanish holding company Aqualia was also to buy out the remaining 20% stake in Georgia Global Utilities.

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