General Director, Organizer, & Founder of Georgian International Holdings (Georgian International Holdings)

Can you provide us with a brief history and some of the key developments of the Kutaisi FIZ?

After the Rose Revolution, Georgia completely changed. Corruption was diligently fought and was practically eliminated. Crime was cracked down upon and the criminals were jailed or removed from the country. This newfound emphasis on transparency and security was the best move to invite business people to Georgia. The new government, with a strong focus on democracy and having highly educated governmental officials, created a much more attractive business climate. Among many new policies put into effect, the government decided to develop a Free Industrial Zone in Kutaisi.

Once this decision was taken and the laws were written concerning the FIZ, I contacted the president of the Egyptian home appliance company, FRESH, who I knew from New York. I invited him to come to Georgia to meet the Prime Minister to explain all the incentives and benefits available to investors looking to work in this FIZ. He immediately saw the potential and we began to plan the development process of the Kutaisi FIZ as a partnership between Georgian International Holding and FRESH.

Our zone is 27 hectares and has one building that is 110,000 sq meters alone. This particular factory appealed to FRESH as the perfect location for a new factory. After 7 months of development they began assembling home appliances there.

Starting in August 2010, the factory will be capable of producing at all levels of production starting from raw materials and it will be able to distribute to 52 different countries. This year we plan to add 3 additional companies to the FIZ and aim to have 12 companies operating in the FIZ by 2012.



…and how many workers are currently employed in the FIZ?

There are 450 workers, including construction workers. The minimum salary is 375 GEL, which for Kutaisi is very big. We care a lot about the development of the skills of our workers and send people to Egypt every month for training seminars. We are looking to hire workers with more specialized skills such as engineers and are ready to offer desirable financial packages.



What will be the total investment in the Kutaisi FIZ project?

The whole project will represent a USD 1,200,800,000 investment, finishing in 2012. By this year we hope to have 12,000 workers employed and 12 factories producing on the FIZ.



All you looking for additional foreign investors?

Yes we are. My dream is to invite some American investors, such companies as Home Depot and Starbucks, as I feel they would have a lot to gain from setting up operations here and we would gain by having them. However, as of now, we are mainly focused on inviting Egyptian companies.



What incentives do you offer to potential investors?

They don’t pay income tax, they don’t pay social, and they don’t have to worry about customs or VAT. They have the opportunity to produce and sell their products at a low cost and then they maintain all the potential income.



How are you helping Georgia, and specifically Kutaisi with your project?

For me one of the main points of this project is to help the area. The idea is that all the workers will come from this area. We, as Georgians, need to make more projects similar to this to help build up the county and reach its potential. Georgia is not only Tbilisi as many other areas carry great potential. Helping the development of such a region is crucial for my country.



As you are working with government, which sends a strong message of stability to the investment community, what specific relationship do you have with them?

It’s a very simple relationship. We do our job and they do theirs! I believe that if you promise something you must deliver. So far, we are delivering on our promise and are on schedule with the development of the FIZ. The government has helped greatly by establishing the incentives that lead to the creation of the zone. We continue our collaboration as both parties stand to gain from a successful project.



On a personal level you must be very proud to be behind such an important project for Georgia. What are you the most proud of?

I feel like I’m driving a big and important project for my country and I am proud to say that this will be the first of many.