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Investment opportunities in Georgia, often referred to as the "Swiss Alps of the Caucasus" due to its stable political climate and high economic potential.

Investing in Georgia's banking sector offers a lucrative entry point into this burgeoning country. Two primary banking institutions stand out, boasting affordability and providing solid dividend payouts.

Georgia's attractive investment landscape - the "Swiss counterpart of the Caucasus"
Georgia's attractive investment landscape - the "Swiss counterpart of the Caucasus"

Investment opportunities in Georgia, often referred to as the "Swiss Alps of the Caucasus" due to its stable political climate and high economic potential.

Georgia, nestled between Europe and Asia on the shores of the Black Sea, is a country with a rich history and a promising future. With a population of 3.7 million, the majority of whom are Christian Orthodox (85%) or Muslim (11%), Georgia is strategically located and has embraced new technology and the digital revolution in both its public and private sectors.

One of the key sectors driving Georgia's growth is its transportation corridors. These corridors enable Kazakh uranium to reach global markets, and Georgia also houses key oil and gas pipelines. This strategic positioning has positioned Georgia as a vital link between East and West.

In the financial sector, two of the most significant players are TBC Bank and Bank of Georgia. TBC Bank, a member of the FTSE 250, boasts a market value of £1.7 billion and a yield of 7%. With a strong digital presence catering to 1.6 million customers, TBC Bank is the largest banking group in Georgia. Bank of Georgia, another FTSE 250 stock, has a market capitalisation of £2 billion and a yield of 5%. Both banks are expanding abroad, with Bank of Georgia recently entering the Armenian market.

Georgia's economy has been recognised as one of the fastest-growing in Eastern Europe by the World Bank. This growth is due in part to the country's representative democracy and relatively low taxes, which currently stand around 20%. Georgia has also centralised key databases with digital technology to reduce corruption.

The country's economy is not limited to finance and technology. Georgia is still a prolific wine producer, with a history dating back to ancient times. The country's ports, notably Batumi and Poti, are at 100% capacity, reflecting the country's economic vitality.

Georgia's future looks promising, with the potential to join both the Shanghai Cooperation Organisation (SCO) and the EU. The country has already made strides in this direction, with an application to join the EU. However, it remains to be seen how these applications will be received.

In conclusion, Georgia is a country with a strong economy, strategic location, and a promising future. Its banks, TBC and Bank of Georgia, are key players in a rapidly growing economy. Investors looking for opportunities in Eastern Europe may find Georgia an attractive prospect, as suggested by presentations at a recent conference in London. With its rich history, vibrant culture, and economic potential, Georgia is a country worth watching.

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