According to Shorena Kopaleishvili, Chairman of the Association of Georgian Virtual Zone, 2024 was a negative year for the IT sector. The trend that has developed over the years of turning Georgia into a regional center is gradually disappearing, since not only do foreign companies not come to the country, but existing ones are also difficult to support. As Kopaleishvili told Сommersant, the main reason for this is the unstable business environment. As Kopaleishvili told Сommersant, the main reason for this is the unstable business environment.
"The Association of Georgian Virtual Zones is an IT intra-industry, which is mainly represented by small and medium-sized international companies. Compared to the boom in the sector and even compared to the 2023 figures, unfortunately, in 2024 growth declined both in terms of interests and the trend of existing companies to leave Georgia. With companies with the status of a virtual zone, we had other prerequisites, because they had had a two-year dispute with the tax authorities, although we still managed to maintain positive dynamics. The unstable environment and political and economic fluctuations had their impact. some parameters are set for the IT sector that this business strives for as well as certain needs that are to be met.
Several years ago, Georgia positioned itself as a regional leader in this area due to several factors, such as the preferential regimes established by the state for the virtual zone and international IT companies. For this reason, many successful or start-up IT companies got interested in entering the jurisdiction of Georgia. In addition, it is important that the activity in the country to be stable and predictable. These parameters were combined for a certain period of time that boosted the attraction of financial resources," Shorena Kopaleishvili notes.
They stress in IT intra-industry that, despite favorable conditions are preserved, the business and economic environment is still the main thing. Some IT representatives who have left Georgia settled in neighboring Armenia.
"The preferential regime in Georgia remains and has not changed, although in fact the current situation in the country has hampered the development of the IT sector. Companies are trying to find other preferential regimes. Some of our member companies have left Georgia for Slovakia, as well as for Armenia, which is very actively working on changing and improving legislation.
I want to emphasize that we can’t attract companies only with benefits and tax preferences, and will not preserve the existing ones either," Shorena Kopaleishvili, Chairperson of the Georgian Virtual Zone Association, points out in an interview with Commersant.
