Shorena Kopaleishvili says that some IT companies have preferred Slovakia and Armenia to Georgia

Shorena Kopaleishvili, Chairman of the Association of Georgian Virtual Zone, assessed 2024 as a negative year for the IT sector due to gradual disappearance of the trend of turning Georgia into a regional center that developed over the years. The reasons of that are leaving of foreign companies from the country and difficulties with the support of existing ones. Kopaleishvili told Сommersant that the unstable business environment had mainly caused this situation.
According to Kopaleishvili, small and medium-sized international companies mainly represent an IT intra-industry called the Association of Georgian Virtual Zones. In 2024 the growth declined both in terms of interests and the trend of existing companies to leave Georgia compared to the boom in the sector and even compared to the 2023 figures. There were other prerequisites with companies with the status of a virtual zone, because they had had a two-year dispute with the tax authorities, although positive dynamics was still maintained in spite of the unstable environment and political and economic fluctuations. They set some parameters for the IT sector, and this business strives for as well as it needs to meet certain needs.
Several factors, such as the preferential regimes established by the state for the virtual zone and international IT companies, let Georgia become regional leader in this area several years ago. This made many successful or start-up IT companies get interested in entering the jurisdiction of Georgia. Moreover, activity in the country was stable and predictable in addition to that. As Shorena Kopaleishvili notes, the combination of these parameters for a certain period of time boosted the attraction of financial resources.
It is highlighted by IT intra-industry that, in spite of preservation of favorable conditions, the business and economic environment is still the main thing. Neighboring Armenia has been chosen for settling in by some IT representatives who have left Georgia.
In fact, the development of the IT sector has been hampered by the current situation in the country, although the preferential regime in Georgia remains and has not changed. Other preferential regimes are being looked for by companies. Slovakia, as well as Armenia, which is very actively working on changing and improving legislation, have been chosen by some of member companies that have left Georgia.
Shorena Kopaleishvili, Chairperson of the Georgian Virtual Zone Association, emphasizes the impossibility to attract companies only with benefits and tax preferences, without preservation of the existing ones either, in an interview with Commersant.

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