The Georgian government signed an agreement with the Investment Authority of Ras Al Khaimah (RAK) emirate on the development of a free economic zone in Georgia’s Black Sea port of Poti on April 11, 2008. The President of Georgia Mikheil Saakashvili, the Prime-Minister of Georgia Lado Gurgenidze, the Minister of Economic Development of Georgia, Ekaterine Sharashide and the First Lady, Sandra Roelofs attended the ceremony New Poti Port and Free Industrila Zone presentation.
"This is the golden opportunity for our country. My strong wish is to develop the economy of the country and create jobs for the Georgian citizens”, said Mikheil Saakashvili.
Ras Al- Khaimah Investment Authority (RAKIA) will develop a Poti free economic zone in a 49- year management concession. Government selected investors from UAE to manage a free economic zone in Poti and upgrade the town’s port. Around USD 200 million will be invested into the development in the next three to four years. The Poti free economic zone will employ 16,000 to 22,000 people and an inflow of USD one billion is expected in the region. The Poti Free Industrial Zone will be created, which will include hundreds of new modern enterprises, container stocks and logistic centres. According to the development project plan, the Poti Industrial Zone will be spread over 305 hectares.
"RAK Investment Authority has a very good experience of operating such zones, as well as managing ports in the UAE,” Prime-minister Lado Gurgenidze said.
RAK’s own free trade zone consists of three business parks: for trading and services, for heavy industries and warehousing of raw materials and for manufacturing. Established in 2000, the zone had more than 3 000 registered companies with trade turnover of around USD 8 billion within two years. The UAE investors will also construct the new Poti port terminal. The terminal will improve and enlarge the existing port, rather than replace it entirely.
RAK’s real estate development company Rakeen Development is building a large residential and business complex in the capital, and bought the Sheraton Metekhi Palace hotel in Tbilisi.
