AGP Executive Report

Central Banking & Reserves: Azerbaijan’s central bank deputy chairman Ali Ahmadov joined a Tbilisi roundtable on asset and reserve management, hosted by the National Bank of Georgia and J.P. Morgan, focusing on liquidity, risk and reserve allocation. Trade & Markets: Georgia’s external merchandise trade rose 8.4% year-on-year in Jan-Aug 2026 to $17.926bn, with exports up 22.1% to $5.423bn; exports to Iran surged 746.8% to $162m, while Kyrgyzstan stayed the top export destination and Turkey the top import partner. Energy & Infrastructure: Georgia’s power ambitions got a boost as officials discussed plans to increase electricity production 2.5 times by 2036, while a US court ordered Georgia to pay over $400m to ENKA over the Namakhvani HPP. Politics & Oversight: Georgia’s State Audit Office launched an investigation into the Tbilisi School of Political Studies over alleged receipt of a grant without government consent. Food Safety: Tbilisi suspended dairy items from kindergarten menus and launched probes after suspected intoxication cases, with operations paused in seven facilities. Real Estate & Investment: Eric Trump said a Trump Tower project in Tbilisi will bring “Western standards” while adapting to local traditions, positioning Georgia as a business and tourism hub.

Political Oversight: Georgia’s State Audit Office has started monitoring the Tbilisi School of Political Studies after allegations it received a grant without government consent; the probe targets the NGO led by Armaz Akhvlediani and will be carried out under the Law on Grants. Trade & Markets: Geostat data show Georgia’s exports to Iran jumped 746.8% in Jan–Aug 2026 to $161.9m, driven mainly by passenger cars (7,360 units, $129.2m). Regional Business Push: Busan plans a Nov. 8–14 trade mission to Baku and Tbilisi, aiming to diversify exports amid tariff and geopolitical uncertainty, with support for 10 local firms. Aviation & Sanctions: Iranian airlines’ flights to Georgia are being restricted after US sanctions hit Iran’s aviation sector; the last flights ran Sept. 20. Energy & Economy Snapshot: In Jan–Aug 2026, Georgia’s external trade turnover rose to $17.9bn (+8.4%); exports grew 22.1% to $5.42bn while imports increased 3.4% to $12.50bn, leaving a $7.08bn trade deficit. Real Estate/Investment: Eric Trump says Trump Tower Tbilisi will bring “Western standards” adapted to Georgian traditions, positioning the project as a magnet for further international investment.

EU4Business Support: The EU says it backed 76,378 SMEs across Armenia, Azerbaijan, and Georgia in 2025, disbursing €135.2m and supporting 48,006 firms with €80.7m in finance, while creating 89,388 jobs and sustaining more than 474,000. Public Health Shock in Tbilisi: Georgia’s National Center for Disease Control says norovirus likely caused mass illness at public kindergartens; operations were suspended in seven facilities as dozens of children were hospitalized and an investigation continues. Energy & Investment Signals: Georgia’s economy ministry says “PASHA HOLDING” plans additional investments in Georgia, while separate coverage highlights plans to boost electricity production 2.5 times by 2036. Regional Politics With Business Impact: The EU and Georgia condemn South Ossetia’s “presidential” vote as illegal, with the EU saying it has no legal effect—raising ongoing risk for cross-border projects. Diplomacy: Serbia and Georgia held bilateral political consultations in Tbilisi, with both sides pointing to further cooperation including the economy and Expo 2027 in Belgrade.

EU4Business Results: The European Commission says its EU4Business programme backed 76,378 SMEs across Armenia, Azerbaijan, Georgia, Moldova and Ukraine in 2025, supporting €135.2m in funding and creating 89,388 new jobs (plus 474,000 sustained). South Ossetia Vote: The EU condemned the “presidential election” in Georgia’s occupied Tskhinvali region as illegal, while Georgia’s Foreign Ministry said it has no legal effect; meanwhile, Marat Kambolov was reported as the winner. Tbilisi Kindergarten Poisoning: Georgia’s Health Ministry says over 100 children were hospitalized after suspected poisoning at 20 kindergartens; investigations are under way into food safety and possible bacterial causes. Middle Corridor Logistics: Burgas officials argue the Middle Corridor could turn Bulgaria’s ports into a major China-Europe transit hub, citing rail and road upgrades and port capacity. Tourism Push: Georgia was selected to host the UN Tourism Innovation Forum in 2027 in Kutaisi, aiming to boost tourism and connect local startups with global partners. Energy/Trade Context: Azerbaijan’s fuel exports are framed as easing Armenia’s supply and price pressures, highlighting how regional energy trade is reshaping local markets.

Black Sea Shipping Security: Turkey has proposed a targeted memorandum to Ukraine and Russia to curb attacks on civilian vessels, including safer coastal corridors for Romania, Bulgaria, Georgia and Turkey, ship verification steps, and a ban on strikes on grain facilities. Middle Corridor Logistics: Bulgaria’s Burgas mayor says the China–Kazakhstan–Azerbaijan–Georgia route could turn Burgas ports into a strategic logistics hub, with EU-backed upgrades to roads, rail and port capacity. Tourism & Business: Georgia will host the UN World Tourism Organization Innovation Forum in 2027 in Kutaisi, aiming to boost tourism, tech innovation and startup links. Georgia Economy Outlook: The UN cut its growth forecast for CIS and Georgia to 1.8% (2026) and 2.2% (2027), citing weaker Russia/Ukraine activity. Public Health Risk: Georgia launched an investigation into suspected poisoning at 20 Tbilisi kindergartens, with 55 children and one educator showing symptoms; operations were suspended in seven facilities. Occupied Region Politics: South Ossetia’s acting de facto leader Marat Kambolov won the snap “presidential” vote with about 85% amid EU/UK condemnation. Regional Mobility: Russia’s MFA says visa restrictions for Georgians have been lifted and calls it “long-awaited,” highlighting growing tourism and trade ties.

Georgia-Russia Mobility: Russian FM spokeswoman Maria Zakharova said the “Georgian and Russian peoples have missed each other” after visa restrictions were lifted, adding that trade, economic and humanitarian ties continue and that broader travel could boost tourism flows. Tourism & Innovation: Georgia was selected to host the UN World Tourism Organization’s Innovation Forum in 2027 in Kutaisi, with the event expected to raise Georgia’s tourism profile and connect local startups with international firms. Tbilisi Economy & Growth: Geostat reported Georgia’s Q2 2026 real GDP growth at 6.9% y/y, with transport, retail trade, information/communication and health/social work among the fastest-growing sectors, while construction and agriculture contracted. Public Health Probe: Georgia’s Finance Ministry investigative service launched an inquiry into suspected intoxication affecting 55 children and one educator across 20 Tbilisi kindergartens; education activities were suspended in seven facilities. Regional Trade Corridors: A TITR meeting in Bulgaria highlighted Middle Corridor momentum, with MF Port Burgas pitching its capacity to handle rising China-Europe cargo flows. Real Estate Spotlight: Trump Tower Tbilisi held a global launch celebration, positioning the project as a flagship anchor for a roughly $2bn Downtown Tbilisi development.

Energy Strategy: Georgia plans to boost electricity production 2.5 times by 2036, adding new HPPs, wind and solar, plus 250 MW of storage and major grid upgrades, with a Black Sea undersea cable and a “Green Corridor” aimed at linking the Caspian, Black Sea and Europe. Macroeconomy: Geostat says Georgia’s real GDP grew 6.9% year-on-year in Q2 2026, with gains led by transport/storage, arts and health services, while construction and agriculture contracted. Finance & Regional Banking: Tbilisi hosted a regional meeting of central bank governors with J.P. Morgan, the World Bank and the Asian Development Bank, focusing on capital markets, reserves management and monetary stability amid volatility. EU & Occupied Regions: The EU invalidated South Ossetia’s “presidential elections,” calling them illegal and warning Russia is moving toward annexation; the UK echoed condemnation. Business & Investment: EU President von der Leyen said the Middle Corridor could attract up to EUR 12bn to cut transit times and triple trade flows by 2030, directly linking South Caucasus and Central Asia to Europe. Real Estate Spotlight: Trump Tower Tbilisi held a global launch celebration for the roughly $2bn Downtown Tbilisi project.

Food Safety Crisis in Tbilisi: Georgia’s Finance Ministry Investigation Service has launched a probe after 55 children and one teacher showed signs of intoxication at 20 Tbilisi kindergartens; searches were carried out at four kindergartens and three food-supplier companies, and officials say the cause may be a bacterial infection linked to kindergarten food, with lab results expected. Public Health Response: Tbilisi Kindergarten Management Agency says classes are suspended at seven kindergartens as a precaution, while 183 continue operating, and the National Food Agency is collecting samples and will publish findings. Accountability Focus: Prime Minister Irakli Kobakhidze said agencies must determine which catering company (or companies) were responsible, adding that accountability will follow once investigations conclude. Finance & Energy Lending: Georgia’s Economy Ministry reports banking lending to the energy sector hit a record 3.2bn lari as of July 2026, up 30% year-on-year. Regional Finance Infrastructure: Tbilisi hosted a SWIFT Payment Forum for the Caucasus and Turkey, centered on improving cross-border payments and financial interoperability. Tourism Diplomacy: UN Tourism’s secretary-general is visiting Georgia and meeting PM and business representatives. Consumer Protection Link: Azerbaijan was elected to ICPEN’s advisory group for 2026-2027, with Georgia also listed among the group’s members. Big Real Estate Launch: Trump Tower Tbilisi held a global debut launch celebration for its roughly $2bn Downtown Tbilisi project, signaling continued foreign investment interest in Georgia’s property market.

Airport Deal Watch: Singapore’s Changi Airports International says it’s interested in investing in and operating Georgia’s planned Vaziani international airport, a $1.2–1.3bn project near Tbilisi aimed at 20m passengers a year by 2031. Energy Strategy: Georgian officials unveiled a 10-year plan to boost power generation 2.5 times by 2036, including the Black Sea submarine cable and a “green corridor” linking the region. Legal & Investment Risk: A US court ordered Georgia to pay ENKA Renewables over $400m tied to the Namakhvani HPP dispute, after protests halted the project; the government says external NGOs and the “Party of Global War” sabotaged it. Diplomacy & Trade: Georgia’s Economy Minister met the US Chargé d’Affaires to discuss cooperation in trade, energy, transport, logistics and the Middle Corridor. Policy at Home: New school rules start this September: uniforms for grades 1–6, phone storage, and gradual textbook and grading reforms. Government Shake-up: Georgia saw senior security and finance leadership changes, including the resignation of SSS chief Geka Geladze. Economy Signals: Georgia expects higher freight traffic and power growth, while the ENKA case keeps investor confidence in the spotlight.

EU Enlargement & Georgia’s Role: Georgian Foreign Minister Maka Botchorishvili told the Arab Media Summit that the EU lacks South Caucasus experience and needs “intensive dialogue” with Georgia, pointing to about 8% growth and Georgia’s growing Middle Corridor role. EU–Canada Deal: European Commission President Ursula von der Leyen backed making Canada the EU’s first “associate member,” aiming to deepen cooperation as US–Canada tensions rise and Trump warns of “heavy tariffs” if the move is seen as hostile. Trump Tower Tbilisi: The $2bn Trump Tower Tbilisi project officially launched in Tbilisi with PM Irakli Kobakhidze in attendance, featuring a high-security global event and plans for a new luxury district. Sanctions & Iran Flights: Kobakhidze said Georgia is not imposing bilateral sanctions on Iran and will suspend US-sanctioned Iranian airline flights only within the existing sanctions regime. Food Safety Crackdown: Georgia’s National Food Agency suspended production at two Tbilisi food establishments after inspections found critical hygiene and labeling violations. Energy Cooperation: Georgia’s economy minister said Tbilisi is strengthening energy cooperation with Azerbaijan, including full operation of the Baku–Supsa oil pipeline. Corruption Case: Former State Security Service chief Grigol Liluashvili was sentenced to 13 years for corruption-related charges. Transport & Trade Finance: Brussels pledged up to €12bn for the Middle Corridor, signaling a shift toward faster, diversified freight routes.

US-Georgia Business Climate: Georgia’s government says it will comply with US sanctions on Iranian airlines, a move that will disrupt direct flights to Tbilisi and Batumi from Sept. 21, drawing a sharp response from Iran’s ambassador. Legal & Governance: Former State Security Service chief Grigol Liluashvili was sentenced to 13 years for corruption; prosecutors say the case involved bribes tied to “call centers” and other deals, while defense and supporters call it politically motivated. Diplomacy & Investment: Georgian PM Irakli Kobakhidze met China’s DBH Group to discuss energy and renewable projects and the Middle Corridor’s role in trade; Georgia’s Economy Minister also met PASHA Holding to review $60m of past investment and future expansion. Regional Trade Routes: Azerbaijan and regional partners discussed extending China–Central Asia connectivity via the Caspian Sea to Azerbaijan, reinforcing Middle Corridor ambitions. EU Watch: EU Commission President Ursula von der Leyen backed a new “associate member” model for Canada, signaling deeper economic and security cooperation. Energy & Logistics: Batumi Oil Terminal reported a record August transshipment volume since 2017, supported by resumed crude and aviation kerosene cargo. Finance: Remittances from Russia to Georgia fell 87.74% in August year-on-year, dropping Russia’s rank among sources. Corporate/Legal Risk: A US court ordered Georgia to pay ENKA over the Namakhvani HPP project, with Georgia saying it will appeal.

Political Finance Watch: Transparency International Georgia says Georgian Dream received GEL 2.4m from Adjara in Jan–Aug 2026, 41% of its donations, with many donors linked to firms that later benefited from state procurement and permits—raising fresh state-capture concerns. Major Investment & Real Estate: Trump Tower Tbilisi was officially launched, with the $2bn “Downtown Tbilisi” plan covering about 600,000 sq m and a 280m, 62-storey tower aimed at boosting jobs, tourism and international visibility. Arbitration Shock for Namakhvani HPP: A US court ordered Georgia to pay ENKA more than $400m after losing an arbitration case tied to the Namakhvani HPP termination, with the final figure expected to rise due to interest. Security Leadership Change: Parliament approved Tamaz Borashvili as head of Georgia’s State Security Service, setting priorities from counterintelligence and cyber protection to risks linked to Abkhazia and Tskhinvali. Regional Money Flows: Georgia’s money transfers from Azerbaijan fell to $2.98m in August, while transfers from Georgia to Azerbaijan rose, according to the National Bank of Georgia. Urban Mobility: Tbilisi announced staged traffic restrictions around Europe Square for the Red Bull Soapbox Race (Sept 11–14). Business & Compliance: Georgia’s Revenue Service leadership was reshuffled, with Mamuka Baratashvili appointed head and Merab Gamkrelidze leading the Investigative Service.

Trump Tower Tbilisi: Georgia’s PM Irakli Kobakhidze unveiled the Trump Tower project in central Tbilisi, pitching a $2bn investment and a 62-storey, 280m landmark, with construction due to finish in 2031 and a wider “Downtown Tbilisi” complex planned by 2033. Middle Corridor & rail: Georgia is expected to launch an Anaklia railway construction tender by end-October, while Moody’s highlights the Middle Corridor’s role in regional growth and a Georgian expert says it can become a more reliable multimodal trade system. Energy corridors (Azerbaijan–Türkiye–Europe): Azerbaijan and Türkiye are coordinating “coming decades” energy projects, including green power exports to Europe and a strategic electricity link via Nakhchivan, with ADB discussions also focusing on green corridors and grid expansion. Georgia–Russia politics: Georgian PM Kobakhidze urged that “Russophobia” be “nipped in the bud,” saying hostility toward Russia is being fuelled by foreign forces. Remittances shock: Netgazeti reports Georgia’s money transfers fell 8.2% y/y in August, driven by an 88% plunge in remittances from Russia after sanctions hit Zolotaya Korona. Georgian legal & governance: The Georgian Prosecutor’s Office concluded a plea bargain with former defense minister Juansher Burchuladze, cutting his 10-year sentence to 3 years served; meanwhile, a court fined Malkhaz Machalikashvili for insulting Bidzina Ivanishvili. Local economy (wages & transport): Geostat says average monthly salary rose 8% to 2,389.3 GEL, and a Tbilisi tramway design-and-build contract was signed.

Energy Deal: UAE’s XRG has completed its purchase of an equity stake in Azerbaijan’s Southern Gas Corridor CJSC, gaining exposure to the 3,500-km gas network that runs via Georgia and Türkiye to Southern Europe. Energy & Finance Flows: Azerbaijan reported $531m net inflows from money transfers in H1 2026, with Russia the biggest source, and said direct investments abroad reached about $5bn, with Italy a key destination. Retail & Mobility: BYD officially entered Georgia via GT Group, opening its first authorized showroom in Tbilisi and planning a wider rollout including Batumi and a fast-charging network. Jobs & Wages: Georgia’s average monthly nominal salary rose 8% to GEL 2,389.3 in Q2 2026, with the highest pay in information/communication and financial services. Urban Infrastructure: Tbilisi signed a GEL 288m contract with a Turkish consortium to design and build a 7.5 km tram line from Didi Dighomi to Didube metro. Consumer & Business Climate: Tbilisi hosted the ICPEN Global Consumer Protection Conference, while a GMAP Market Development Forum also drew regional finance-market stakeholders. Safety Incident: An explosion at Tbilisi’s Nova production site caused facade damage but no injuries. Politics Watch: Georgian Dream PM Irakli Kobakhidze said the Constitutional Court’s ruling on a bid to ban opposition parties is awaited. Real Estate/Branding: The Wall Street Journal reports a Trump Tower Tbilisi project tied to land linked to Bidzina Ivanishvili, with Eric Trump set to attend next week.

Transport & Trade: Georgia logged “decade-high” freight momentum in Jan–Aug 2026, with seaports and terminals handling 13.7m tons (+24% y/y), containers up to 554,174 TEU (+9%), rail freight at 9.7m tons (+11%), and air cargo rising 30% to 29,300 tons—another push for the Middle Corridor. Energy & Costs: Fuel prices stayed volatile abroad and in the region, with U.S. metro Atlanta regular gasoline averaging about $4 and Georgia diesel around record territory, underlining how global oil disruptions keep feeding local cost pressures. Regional Connectivity: Moody’s says Middle Corridor investment in transport, logistics, data centers and fiber networks is already boosting growth across Kazakhstan, Azerbaijan and Georgia, with spillovers to neighbors and rising cross-border power projects. Policy & Finance: Canada’s PM Mark Carney is moving toward a “unique alliance” with the EU (not EU membership), while Georgia’s court process continues and Georgia’s security leadership reshuffle adds political uncertainty. Business Watch: A major Trump Tower Tbilisi launch is set to draw international attention, with reported investment estimates around $2bn. AI & Security: New AI safety warnings and debates over regulation are intensifying, alongside real-world security tech showcases in Georgia.

Georgia Infrastructure & Trade: Georgia expects to launch the Anaklia deep-sea port railway access tender by end of October after negotiations with international financial institutions were completed and Georgian Railway finalized the design. State Security: Head of Georgia’s State Security Service Geka (Gela) Geladze has tendered his resignation, saying he will continue work at another agency after consultations with the political team. Real Estate & Investment: Eric Trump is set to visit Georgia next week for the official presentation of “Trump Tower Tbilisi,” a Downtown Tbilisi complex with six skyscrapers and reported $2bn total investment, with the Trump Organization earning brand and sales-linked revenues rather than direct construction funding. Sanctions & Aviation: Iran’s ambassador pushed back on Georgia’s plan to comply with US sanctions against Iranian airlines, arguing Georgia is only one of several destinations for Iranian travelers. Regional Connectivity: Analysis highlights how the Middle Corridor’s expansion is increasingly tied to financing and domestic financial market development across Central Asia and the South Caucasus. Education & Tech: Business and Technology University marks its 10th anniversary, citing AI-focused programs and international projects. Tourism & Culture: Georgia’s film “Guria” has been selected as the country’s Oscar submission for Best International Feature Film.