1. www.investingeorgia.org 1
REGIONAL SERVICE HU B
HUB
(Retail/Healthcare/BPO/Financial Services/Education)
Georgian National Investment Agency 2013

2. REGIONAL SERVICES HUB
• Georgia’s service sector achieves leading ranks
IN
among regional economies in terms of value
added and trade
• Services have major share of FDI inflow of 45% in
2011 with USD 500 million:
» Financial services have grown at 19% p.a. since
2009 and is the leading service sub-sector for FDI
attraction with 15% of total inflows in 2011
» Consultancy services attracted 12% of total FDI
IN GEO
inflows in 2011
» Wholesale/retail trade accounts for 40% of
service GDP, and strong FDI inflows rebound
at 48% p.a. since 2009
» FDI inflows in healthcare/social work have
grown at 146% p.a. since 2007
• OPPORTUNITY TO CAPITALIZE:
» Financial services/headquarters
» Retail hub as the destination-of-choice
for shopping
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3. www.investingeorgia.org 3
OVERVIEW OF GEORGIA’S SERVICE SECTOR
• Service accounts for 43% of GDP, 14% of exports, 7% of imports and
~ 10 % of employment (plus another ~ 20% in the form of informal
V
VEST
employment)
• Georgia’s service sector achieves leading ranks among regional
economies in terms of value added and trade
Large share of GDP and employment
• High fixed asset investment share (26% - USD 466 million in 2010)
• Major share of FDI inflow of 45% in 2011 with USD 500 million
ORGIA
R
Leading investment engine
• Financial services have grown at 19% p.a. since 2009 and is the
leading service sub-sector for FDI attraction with 15% of total inflows
in 2011
• Consultancy services only started to receive FDI in 2010 but attracted
12% of total FDI inflows in 2011
• Wholesale/retail trade accounts for 40% of service GDP, and strong
FDI inflows rebound at 48% p.a. since 2009
Several sub-sectors with high growth • FDI inflows in healthcare/social work have grown at 146% p.a. since
investment potentials 2007
• Several medium size projects placed by Middle East investors (Abu
Dhabi Group USD 42 million, Grand Cinema USD 30 million)
Few projects placed except for real
estate

4. OVERALL SECTOR TRANSPARENCY
CONTRIBUTION TO THE ECONOMY
In percent USD mn or ‘000 FTE
IN
100%
43
10 14 7
1 1 2
GDP Employment Exports Imports2
40 166 443 438
IN GEO
INVESTMENT
% of total
Investment in fixed FDI inflow2
assets, USD mn USD mn Top projects
Investor Project Volume
466 690 USD mn
RAKIA (UAE) Imedi TV 42
299 (90% stake)
393
Abu Dhabi Standard Not
Group (UAE) Bank JSC disclosed
Grand Entertainment 30.2
Cinema (UAE)
2009 2010 2009 2010 Dentsu Inc Social Thinker Not
(Japan) GmbH disclosed
23% 26% 60% 62%
1 2011 data; additional 20% of employment in the form of
informal employment
2 2010 data
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5. www.investingeorgia.org 5
SUB-SECTOR TRANSPARENCY
SECTOR DETAILS
VEST
GDP contribution of service sub-sectors 2009-2011 CAGR
2011, percent, USD mn Percent
100% 6,340
Retail trade of motor fuel 2 11
2 3 11
Repair of motor vehicles, -3 9
personal and household goods 6 19
Other construction work 7 9
Financial intermediation
8 11
Post and telecommunications
ORGIA
General construction 10 3
Education
11 9
Other service activities
Health and social work 14 2
Wholesale, except motor vehicles 17 11
Retail trade, including motor vehicles 19 11
2011

6. GEORGIA HAS A VIBRANT SERVICE SECTOR WHICH
CONTRIBUTES SIGNIFICANTLY TO THE ECONOMY
REGIONAL BENCHMARK OF SERVICE SECTOR CONTRIBUTION
IN
Service value added/GDP2 Trade in services/GDP3
2011, percent 2011, percent
Georgia 75 Kyrgyz Republic1
c 38
Turkey 64 Bahrain 26
Ukraine 60
Georgia 23
Tajikistan 60
Kyrgyz Republic 51
Ukraine 21
Kazakhstan 50 Armenia 19
IN GEO
Syria1 46 Syria1 18
Iran1 45 Saudi Arabia 16
Uzbekistan 45
Azerbaijan 13
UAE1 44
Armenia 42
Oman 13
Saudi Arabia 38 Tajikistan1 11
Turkmenistan 34 Kazakhstan 8
Azerbaijan 27 Turkey 8
1
Estimate based on 2010 data
2
Include ISIC item 50-99. Value added is the net output of a sector after adding up all outputs and subtracting
intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion
and degradation of natural resources.
3
Include ISIC item 50-99. Trade in services is the sum of service exports and imports divided by the value of GDP, all
in current U.S. dollars.
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GEORGIA HAS HIGH AVAILABILITY OF PHYSICIANS YET NEEDS
IMPROVEMENTS IN HEALTHCARE INFRASTRUCTURE
REGIONAL BENCHMARK OF HEALTHCARE ECOSYSTEM
VEST
ST
Number of physicians Number of hospital beds
per 1000 population, 2011 per 1000 population, 2011
Georgia 4,2 Ukraine
Belarus Kazakhstan
3,8
Bulgaria
Kazakhstan 3,8
Tajikistan
Bulgaria 3,7 Azerbaijan
Ukraine 3,5 Uzbekistan
Azerbaijan 3,4 Turkmenistan
Armenia 2,8 Armenia
ORGIA
GIA
Uzbekistan 2,6 Georgia 2,91
Turkmenistan 2,3 Albania
Romania 2,4 Turkey
Tajikistan 1,9 Saudi Arabia
United Arab Emirates 1,9 Kuwait
Turkey 1,7 United Arab Emirates
Bahrain
Syria 1,5
Oman
Saudi Arabia 1,5 Iran
Albania 1,1 Syrian Arab Republic
Iran 1,1 Iraq
Pakistan 0,8 Qatar
Iraq 0,7 Pakistan
1
Despite number of hospital increased from 229 to 241 from 2000-2009, number of beds declined sharply
from 21,200 to 13,600; Bed utilization rate was low at 30% due to outdated facilities; By 2013-end, 8,000
beds will be privatized to improve facilities and use efficiency

8. GEORGIA HAS STRONG FOUNDATION TO DEVELOP
A REGIONAL FINANCIAL CENTER
REGIONAL BENCHMARK OF HEALTHCARE ECOSYSTEM
IN
Strength of legal rights in financial Credit depth of information2
sector1, 2011, 0= lowest; 10=highest 2011, 0= lowest; 6=highest
Ukraine 9 Georgia 6
Georgia 8 Armenia 6
Armenia 6 Saudi Arabia 6
Azerbaijan 6 Azerbaijan 5
Saudi Arabia 5 Kazakhstan 5
Bahrain 4 Turkey 5
IN GEO
EO
Iran 4 United Arab Emirates 5
Kazakhstan 4 Iran 4
Oman 4
Kyrgyz Republic 4
4
Oman 4
Qatar
Qatar 4
Turkey 4
Ukraine 4
United Arab Emirates 4
Bahrain 3
Tajikistan 2 Uzbekistan 3
Uzbekistan 2 Syria 2
Syria 1 Tajikistan 0
1
Strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of
borrowers and lenders and thus facilitate lending; 2 Credit depth of information index measures rules affecting the
scope, accessibility, and quality of credit information available through public or private credit registries
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9. www.investingeorgia.org 9
GEORGIA’S POTENTIAL REGIONAL SERVICE HUB CAN BE
BASED ON THREE COMPLEMENTARY COMPONENTS
VEST
A regional lifestyle
and service hub
Connectivity and Regional head- Regional
traffic hub quarters and service platform
expatriate hub
ORGIA
Financial
Airline + Airport Regional Headquarters Retail
services
• Financial
• Non financial
Tourism Health-care Education
Hospitality Expatriates hub BPO
Entertainment
Key assets
Attractiveness Connectivity Fiscal policies

10. OPPORTUNITY TO POSITION TBILISI AS A FINANCIAL CENTER FOR
CAUCASUS, WEST ASIA AND EASTERN EUROPE AROUND 4 SERVICE PILLARS
GEOGRAPHIC DEPTH: CAUCASUS, HUBBING AROUND KEY FINANCIAL
EASTERN EUROPE AND WEST ASIA AND PROFESSIONAL SERVICES
IN
Regional HQ’s
(MNC’s, Banks)
IN GEO
Wholesale Tbilisi
Multiservice hub
Banking Financial City
Capital markets
Caucasus
West Asia
Eastern Europe+
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11. www.investingeorgia.org 11
OPPORTUNITY TO POSITION GEORGIA AS
A REGIONAL RETAIL DESTINATION
VISION IS TO DEVELOP MEGA MALLS IN KEY LOCATIONS TO TRANSFORM GEORGIA INTO THE REGIONAL
VEST
RETAIL HUB LEVERAGING HIGH TRAFFIC OF FOREIGN TOURISTS AND STRATEGIC GEOGRAPHY
ORGIA
RGIA
BATUMI TBILISI
Benefits of destination mega mall development Tbilisi and Batumi as most potential locations
• Complement overall tourism strategy with solid retail • Established tourist destinations with 80% of foreign
value proposition tourist traffic in Georgia
• Retail magnet for foreign tourists and affluent local with • Accessible with existing international airports and
longer duration of visit (1/2 to 1 day), higher share of major transnational highway/ railway
wallet, and repeated visits • Solid retail, hospitality and other supporting services
• Presence of flagship brands will drive retail brand infrastructure
cluster growth • Integration with other tourism offerings e.g. sun &
beach, casino
• Easier to drive investments

12. GEORGIA NEEDS TO DEVELOP DESTINATION MALLS WITH
CLEAR OVERARCHING CONCEPTS AROUND 4 PILLARS
OVERARCHING CONCEPT
IN
Clear positioning (target segment, value proposition) reflected in all activities through the overall
atmosphere, architecture, music, décor, and materials, and offering a unique experience
Leisure Retail
• Attractions and • Souvenir stores
activities • Concept stores
• Shows and • Everyday stores
IN GEO
entertainment • Services
• Themed setting and
atmosphere
• Culture
Food and Beverages Services and transport
• Themed restaurants, • Transport systems
bars, clubs • Roads
• Dinner shows • Connectivity
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13. www.investingeorgia.org 13
OPPORTUNITIES TO TRANSFORM GEORGIA INTO
A REGIONAL HEALTHCARE HUB
KEY PILLARS OF HEALTHCARE STRATEGY DEVELOPMENT
VEST
3
Urban plan
How to integrate healthcare city into the city?
Operating model
2 How does Developer position itself to maximize value from
Sector (e.g., engaging 3rd party operator?)
Vision is to develop
Healthcare city to
ORGIA
transform Georgia 2A 2B 2C
into the regional
healthcare hub Tenant strategy Real estate strategy Financial and
leveraging high
traffic of foreign Which anchor How to create investment strategy
tourists, existing tenants to attract maximum value from How to invest to
qualified low-cost and how? the land? maximize returns?
physicians
Healthcare sector strategy and industry value proposition definition
1 • What is the aspiration and optimisation function for the developer/creator of City?
• What are key supply/demand gaps within healthcare sector that City should target?
• What are the key elements of a value proposition for each targeted industry?

14. O&O ENCOMPASSES USD 1.6 TRILLION ADDRESSABLE MARKET BY 2020; NEW
UNTAPPED SEGMENTS WILL DRIVE 75% OF FUTURE INCREMENTAL GROWTH
TOTAL ADDRESSABLE MARKET FOR GLOBAL SOURCING
IN
AND DOMESTIC OUTSOURCING, 2020, USD BILLIONS
380-420 1,500-1,640
200-220 ESO/
R&DO
230-250
405-440 ITO
190-220
200-250
IN GEO
500 895
BPO
150
130
220
Core Growth New verti- New Domestic Total ad-
markets in core cals in customer outsourcing dressable
2008 markets developed segments mkt. in new market in
countries geographies 2020
• BFSI, telecom,
• Public
retail, pharma, • Brazil
sector
manufacturing, • EE
• Health SMBs
travel • India
• Media
• NA, WE, Japan • China
• Utilities
• Large enterprises
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OPPORTUNITIES TO TRANSFORM GEORGIA INTO
A REGIONAL BPO HUB SERVING EU MARKETS
+5 years
0-5 years
VE
VEST
Advanced transactional services/
Basic transactional services basic knowledge services
Positioning Transaction center primarily for EU/global center for core
Western European markets competencies
• Deep talent pool
• Low-cost labor • Engaged workforce
Drivers
• Building career models
ORGIA
RG
• Finance & accounting
BPO
• Employee services & payroll • Business analytics
• Selected vertical processes in • Mathematical modeling
banking, financial services and • Business research
Potential plays
insurance (e.g. CRM, mortgage, • Market research
for Georgia
investment) and logistics • Data management services
management
“Dedicated BPO center”
• Advanced CAD/CAM
ITO/ESO
• Basic CAD/CAM services programming
Destination of choice for (e.g., reformatting)
companies operating in
• IT infrastructure services
the field of BPO/ITO for
EU markets
Non-voice back-office services model

16. INVEST
IN GEORGIA
A
GEORGIAN NATIONAL
INVESTMENT AGENCY
www.investingeorgia.org
E-mail: enquiry@investingeorgia.org
Portfolio Manager: Mamuka Chikhladze
E-mail: mchikhladze@investingeorgia.org