The volume of investments made in Adjara region (Western Georgia) in 2007 grew by an impressive 43 percent as compared to the previous year and totaled USD 200 million, including USD 133 million in foreign investments. In 2008 investments in the region are expected to reach USD 255 million with USD 170 million coming from foreign investors.
In 2005-2007 investments were accomplished in various spheres of the Adjarian economy although tourism held the leading position. This is mainly due to the regions high development potential in this segment, as well as recent successful privatization processes and the interest of foreign investors in making the most of Adjaras tourism opportunities. The investment scale is reflected in the number of modern hotel complexes and entertainment infrastructure currently under construction in the region. A significant Kazakhian investment is being made in a project that features 22 tourist objects located on the coastline of Adjara region. The objects will be fully reconstructed with a plan for further development and the consequent increase of the utilization of the regions tourism potential. Along with this the following top-class hotel networks are entering Adjara Region: Radisson, Sheraton Palace, Hilton, Hyatt, Hotel Belle Vue, and the Sea Shore Hotel.
Scaled investments have also been made in the construction sector, which is currently booming in Adjara region. Several multi-storied residential complexes are under construction. Apart from that, it should be mentioned that the USD 35 million reconstruction of the Batumi International Airport was accomplished thanks to Turkish investments. Reconstruction work is also underway in Batumi port and oil terminal, which will positively affect the inflow of foreign investment.
In 2005-2007 Adjara region saw the opening of several food-processing, clothing, industrial and trade factories and the commissioning of a chemical and pharmaceutical plant as well as several mills. In general, over the course of the last four years the investment climate in Adjara region has improved significantly and has become more appealing for foreign investors.
