According to data from the Economic Policy Research Center (EPRC), the number of Iranian companies registered in Georgia has surged dramatically, increasing by approximately 510% since 2012 and exceeding 12,800 by 2025–26. The figures, drawn from data provided by Geostat and the National Bank of Georgia, reveal a striking expansion of Iranian business presence in the country over the past decade and a half.
Investment Flows vs. Company Growth
Despite the sharp rise in the number of companies, foreign direct investment from Iran into Georgia has remained surprisingly modest. Between 2013 and 2024, total Iranian investment reached only $41 million—a figure that, while larger than in previous periods, amounts to relatively small sums per company. More significantly, net foreign direct investment from Iran stood at -$0.65 million in 2024, with preliminary 2025 figures showing around $0.4 million. This stark discrepancy between the explosive growth in company registrations and the minimal levels of capital inflow has raised serious questions about the true nature of these business operations.
Business Activities and Economic Sectors
Iranian companies registered in Georgia are primarily involved in small-scale operations. The main areas of activity include:
- Small-scale trade
- Real estate transactions
- Services and construction
- Logistics and re-export operations
According to EPRC, most of this activity involves small and medium-sized businesses and is notably disconnected from large-scale manufacturing, industrial projects, or technology ventures. The organization also notes that these companies have not generated significant employment in Georgia. A particularly striking detail is that dozens of companies are often registered at the same address, a pattern that warrants closer examination.
Tourism: The Exception to the Rule
Tourism represents the most notable exception to the trend of low economic activity. Between 2022 and 2024, tourism revenues from Iran grew significantly, rising from $91.1 million to $151.1 million—an increase of 65%. However, this growth reversed sharply in 2025, with revenues falling by 17.8% compared to the previous year.
Questions About Transparency and Financial Flows
EPRC has raised critical concerns about why the number of Iranian companies is growing so much faster than corresponding levels of investment and official financial inflows. The organization points out that a significant portion of Iran's financial sector operates under international sanctions, which may push economic transactions into alternative and potentially less transparent financial channels. This situation could make it more difficult for Georgian authorities to effectively monitor financial flows and increases the risks of sanctions evasion and money laundering.
The centre also highlights the international practice of establishing nominal or so-called "paper" companies—entities that are officially registered but conduct minimal actual economic activity. Such companies are sometimes used for re-export operations, intermediary financial transactions, or to circumvent sanctions and regulatory requirements across different countries. As EPRC stated, "When the number of companies grows rapidly but this is not accompanied by a corresponding increase in investment, production, exports or employment, questions arise about the real economic significance of their activities."
Additional risk factors noted by EPRC include Georgia's visa-free regime with the European Union, which could make the country more attractive to Iranian citizens and businesses, and the case of Shelbit, a cryptocurrency company registered in Georgia and owned by an Iranian citizen, which was subject to US sanctions. These examples underscore the range of possible methods to circumvent international restrictions, suggesting that the current rapid growth in Iranian company registrations should be viewed with heightened scrutiny and concern about potential sanctions violations and financial irregularities.