In the second quarter of 2026, foreign direct investment (FDI) in Georgia experienced a significant decline, amounting to $468.8 million. This represents a 23.2% decrease compared to the same period last year. According to the National Statistics Service of Georgia (Geostat), the main reason for the decline was a reduction in reinvestment volumes. Despite the overall decline, the real estate sector maintained its position as the second most important direction for attracting capital into the country's economy.
Investment Flow Structure
A detailed analysis of investments reveals an uneven distribution among their components. Equity investments amounted to $210.5 million, representing 44.9% of total FDI volume. Meanwhile, reinvestments reached $300.5 million, accounting for 64.1% of the investment flow. The decline in reinvested profits of foreign companies already operating in Georgia became the main driver of the negative dynamics in the second quarter.
Foreign Investors
Geographic concentration of investments remains high. China occupies a leading position with $219.5 million in investments, corresponding to 46.8% of the total volume. The United Kingdom invests $123.5 million (26.3%), and the United Arab Emirates — $47.7 million (10.2%). Thus, these three investor countries account for 83.3% of all foreign direct investments in Georgia.
Sectoral Distribution of Capital
In the structure of sectoral investment, the financial and insurance sector leads, attracting $207.6 million (44.3%) of the total investment flow. In second place is the real estate sector with $119.9 million (25.6%), confirming steady foreign capital interest in the Georgian residential and commercial real estate market. Manufacturing occupies third place with $59 million (12.6%) in investments.
The three leading economic sectors accumulated 82.4% of all foreign direct investments. This highlights the concentration of foreign capital in the most attractive industries for investors, where Georgia has competitive advantages — be it geographic position for trade and finance, growing real estate demand, or the potential of local production.