Georgia and Israel represent "2 sides of 1 Medal" in Greater Middle East
- says Mr. Itsik Moshe, the President of Georgian-Israeli Chamber of Business
GEORGIAN TIMES
'Two years ago 70% of investors left Georgia. Now Jewish businessmen return back. This is a revolution in Georgian economics,' Itsik Moshe, president of Georgian - Israeli Chamber of Business stressed at the presentation at the Tbilisi Marriott Hotel on May 26. Meantime as the Executive director of the Federation of Georgian Businessmen Giorgi Isakadze pointed out 'this is a landing force, which strives for developing Georgia,' meaning that it is due to Israeli Ambassador to Georgia Shabtai Tzur and Itsik Moshe, the Georgia is already popular among Jewish investors.
The Georgian Times spoke with Mr. Itsik Moshe:
Q: The Israeli business chamber in Georgia held a presentation of various projects this week. Could you speak about these projects in details?
First of all I should note that the key issue of the presentation was inclusion of about 30 new Companies into the membership of Israeli-Georgia Chamber of Business. These are Jewish companies from America and Israel and Georgian companies as well which are linked and make cooperation with foreign firms through our support.
Q: What spheres are Israeli investors more interested to invest in?
The spheres of investors' interests have various features. These are: Real Estate, Agriculture, Logistics, Defense, Insurance and Financial Systems, different municipal projects. While the last period attention of companies of international scale is focused on formation of trade relations with the states of Eastern Europe and to open the first Representation Office in Tbilisi.
Q: I understand that Israeli investors intend to invest in real estate, in areas where construction is slated for Tbilisi's historic areas. Have the architects considered the importance of preserving Tbilisi's historic appearance?
2-3 years ago, 70% of Jewish investors in Georgia suffered break down in business and their quantity has permanently diminished. At present we may observe recovery in the process of return of Jewish investors, new waves undertakings of investments from Israel. Visually we are facing the current process in the sphere of the real estates, though other spheres are also drawing interests. Concerning the real estates, I think, it is vividly seen that the projects implemented by foreign companies are distinguished by quality and high level of performance. In particular, I would like to note the relation of Jewish investors towards care and keeping of general view of historical part of the city. For instance, company DDI is carrying on restoration of the monument in Abanot Ubani area to make resemblance of 100 years view. The owners of "ARCADA" Business center have introduced not only valuable elements but they are going to take active part in developing of Gudiashvili Street. In regard of limits existing in the center of the city for construction, it is rather painful issue for the investors. As far as it is known to me in the corresponding entities of Mayor's Office the activation is going on for creation of smarter and fit and light system to save the city Center.
Q: The interest of Israeli investors in Georgia seems to have intensified lately. What factors have contributed to this?
Relation towards Georgia has been changed throughout the World. Aiming to investigate for investors The Chamber of business has revealed by implemented survey that Western support, the State PR, Reforms, Political Course, corruption combat - are the key factors by which Georgia has become the attractive country for businessmen.
Q: Could you speak about the large projects that the Israeli business chamber in Georgia has implemented in Georgia already?
As it is known the Chamber of business is non-profit organization and it is in charge for maintaining and support of economical, political and cultural relations between two countries. Correspondingly the Chamber of Business doesn't implement the projects but it promotes and supports investors undertakings in adaptation of business culture and cares for their success. In regard of the projects already completed their enumeration is rather unlimited. For example I would note one of the last projects which have been successfully completed and now is functioning. This is a Business Center on Khetagurov Str., owned by Company "DGM", which represents one of the supreme business centers. Mr. David Elua, the owner of the Company has specially arrived in Georgia, Tbilisi for presentation and expressed readiness to take part with his team in two large projects. There is an existed rather extended investment project which was going on throughout the years. The best example of it is huge complex for rest in Bazaleti done by Company "CENTER". The project is successfully coming to an end despite the fact that the investor frequently faced the problems artificially created; though let us avoid such bitter issues on this date of Holiday.
Q: How intensely is the chamber striving to strengthen business cooperation between our two countries?
Owing to increased interests towards Georgia while last years the activation mode of the Chamber of Business is rather loaded. Each week we invite delegations from Israel on a working visit. This week the Poti port delegation is going to leave for Israel for study of Israel experience in logistics sphere. Though there are the forms of links which don't need investment and the community never learns their results. Such links in relation of two countries are not of less importance. The detailed information over above trends of activities of the Chamber of Business may be obtained on the Site (www.ig-chamber.org). We have extended the Chamber of Business and with new members and investors will work Eka Toroshelidze, experienced and professional PR-Manager.
Q: Are any business forums planned in Georgia or Israel in the near future?
26 May presentation was very important for there was settled the engagement with Georgian Minister of Economics to conduct Business Forum with participation of 10 leading companies organized by The Israeli-Georgia Chamber of Business and Ministry of Economics at the end of summer. The most extended Business Forum which has been held by Israeli-Georgia Chamber of Business was meeting of Georgian President with Jewish businessmen during his visit in Israel. I may declare with full sense of responsibility that this meeting was a immense motivation for return of Jewish investors to Georgia. 60% of the Forum participant-businessmen have already undertaken activities and marketing survey in Georgia.
Q: What can you say about investment possibilities or the climate for successful business in Georgia?
In 1997 Israel has the first place in capacity of private investments in Georgia. Then the situation changed and while the Israel investments to Eastern Europe involved 10 billion USD, the Georgian sure was miserable. I have a delight for at present Israel businessmen again expressed their interest towards Georgia and Israel return its natural place in Georgian Economy. These are two states with distance of 2-hours flight, with capacious past, two small states closely connected from the old history. They are capable to play key role in regional policy, so the relations of our states can't be defined only by business indices. Despite my occupation represents study of past Georgian-Jewish relations (GEORGIAN JEWS), homesickness this is clear that in Israeli-Georgian relations will always exist feature of old sole past fate and political vector. We should focus the future and we have to be conscious that in "Extended Middle East, Georgia and Israel represent 2 sides of 1 medal". I am not going to make political allegations, the diplomatic missions are being here, however it is clearly seen that each phenomenon in 1 region caused the swift reaction in -2 region. At present both countries are occupied by their regional problems, therefore some of expressed ideas are not convincing. It was also unbelievable that in the worst period in economic relations, the Forum of meeting with President we held in Jerusalem under motto: "Let's bring Israel back to first place in Georgian Economy... is in process of coming true to day, 1 year later.
Q: What should be changed to attract more Israeli investors in Georgia?
Through 26 May presentation we declared the return of the Jewish investors. Though we shouldn't forget, that for business is not enough only one-sided desire and motivation. "The successful business resembles tango-dancing", which needs appropriate movements to be harmonious. Certainly, there are numerous problems; however the desire of Georgian side for improvement of investment background in Georgia is vividly seen. The significant steps were made in trends of corruption combat, relieving of business from clans and criminal press, correct tax policy and we hope this tendency will not be changed. The whole planet was changed, not only Georgia. Investments entailed much power, self-defense, insurance etc., therefore investor protection is an urgent covenant of Georgian Government. If the state declares that it needs investments it has to make corresponding measures for their protection. I am not able to observe any progress in any country without investments.
Q: Recently, there was also a presentation for the Chamber's web page. Will this help encourage Israeli businessmen to invest in Georgia?
Despite all of above the potential capacity between Israel and Georgia is adopted only by 5% and the Israeli people have lack of information about Georgia. This is why the web site of Israel-Georgia Chamber of Trade was thoroughly elaborated. For Georgian it may be trivial site. But for foreigners and what is more for those businessmen who are interested in these issues there are significant items for investments. It is very important that you may learn "10 testaments" on the site (main rules) for successful business based on our experience and it is universal for Georgian and foreign businessmen. Each Jewish businessman should learn that for successful business in Georgia, one must pass the Embassy of Israel therewith the Chamber of Trade efficiently cooperates. Each Jewish investor in Georgia should feel closely the Embassy of Israel, The Georgian Authorities and coordination function is carried on by The Chamber of Business.
