The FINANCIAL — The FINANCIAL interviewed Itsik Moshe, President of the Israel-Georgia Chamber of Business (IGCOB), regarding the major highlights in Georgian-Israeli business-economic relations within the 10 years of IGCOB activities and the strategy Israeli investors might have set in different sectors of Georgia’s economy.
Israeli-Georgia trade relations as well as investment volume have increased by 500%. By 2010 daily flights are expected to be conducted from Israel to Georgia. Summer 2008 is expected to be a peak of Israeli investment in the country.
Q. It has been ten years already that the Israel-Georgia Chamber of Business (ICGOB) has been steadily promoting mutually beneficial cooperation between the two friendly countries through acting as a guide for Israeli investors on the Georgian market. Which sectors are the most attractive for Israeli investors nowadays?
A. The 12 years stand for the great experience of IGCOB, including both success stories and hard times caused directly by the ongoing political or economic processes in the country. Still, notwithstanding all the difficulties, several factors remained unchanged during the last 12 years, which was on the one hand the crucial importance of foreign investment flow to Georgia and on the other hand Georgian-Israeli relations. This format is constantly being carried out by IGCOB and based on this very approach we keep attracting investors to the country and act as an important guide for those interested in putting money in Georgia.
As of today the spectrum of Israeli companies represented in Georgia is considerably wide. The major occupation of Israeli businessmen in Georgia cover: real estate, construction, industry, tourism infrastructure, insurance. Lots of these companies are a great success and leaders in the field.
As for the priorities Israeli investors have set in Georgia, the direction concerns: real estate development, tourism. Lately agriculture and banking technologies have appeared to be the major focus as well.
Q. Israel-Georgia Chamber of Business (IGCOB) and Georgian National Investment Agency-Invest in Georgia plan to organize a business forum on the May 12, 2008 in the Courtyard by Marriott Hotel. What are the main topics to be discussed during the event?
A. On May 12, 2008 IGCOB is holding a forum dedicated to the assessment of Israeli investment flow to Georgia. The event is to be carried out under the name “We Build Together”.
The 12 years of experience of IGCOB activities is a case of high importance for investor profile organizations. So far we’ve gained a rich understanding of the attitude balancing the volume of investments and the local market’s demands.
Till now, hundreds of millions of dollars attracted to Georgia as Israeli FDI through IGCOB support, has been due to the cooperation and joint effort made by the broad range of investors and their ultimate commitment to get their businesses adjusted to the local market principles.
The road from the very beginning of the first USD 50 million lost was harder than the next 1 billion value investments.
Q. You were born in Georgia and only in 1971 moved to live in Israel. What’s been the motivation for your return to Georgia and what do you see to be the basic attractions about the country to make foreigners come, start business and even become residents here?
A. My public activities started during a very specific period. I was the very first international representative not only in Georgia but in the whole Post Soviet region. Back then my mission and goal was to manage the return of each Jew to the homeland. As time passed I came to the point when my potential in this respect was fully expired as 500 thousand Jews had already been returned to Israel.
The job I’m engaged in today I regard the continuation of my public activities. IGCOB is a non-commercial and non-profit organization providing free service to investors. Besides, our profile is not limited only to business relations. The IGCOB mission envisions the sound management of social, political, tourism related and cultural relations between Georgia and Israel.
Q. So far the area of your activities covered: Israel, Georgia, Azerbaijan,Uzbekistan, Kazakhstan, Russia and France. Which countries did you feel to be the most harmonious for Israeli business expansion?
A. During the last 15 years I’ve worked in 6 countries. Unlike the U.S.A and Russia or other world giants, it’s impossible to deal with small countries like Georgia and Israel unless you have a deep love for them.
Besides, my special commitment to Georgia is to a great extent due to the fact that I was born in this country and so I happen to be working in a very familiar atmosphere.
As far as the above mentioned question’s concerned, I’d like to quote Haaretz, the well-know Israeli newspaper: “Shift your thoughts from Europe to Georgia.”
Lately trade relations between Georgia and Israel as well as the investment volume were increased by 500%. Economic indicators and reforms conducted also showed a stable growth and improvement while the inflation level is being reduced.
These are the arguments why from a country with a non-attractive image Georgia has turned into one of the most high priority countries for Israel.
Q. IGCOB, a non-governmental, non-profitable organization, was established in 1996 by the former Chairman of the Parliament of Georgia – Zurab Zhvania and the president of the Federation of Israeli Chambers of Commerce – Dan Gillerman. How successfully has the number of IGCOB members been increased since then and what are the major advantages companies get by joining it?
A. ICGOB activities could be summed up in three major phases: 1996-1997, the years of huge anticipation and investment flow from Israel and the latter was the leader investor in Georgia, 1998-2003, the years when lots of Israeli investors fled their businesses in the country and lost millions of dollars and logically leadership positions, 2006-2007, the positive changes are too obvious based on the growth interest level of Israeli investors toward Georgia.
Q. IGCOB contributed to opening of the State Department of Tourism and Resorts of Georgia in Israel. What’s the number of Israeli tourists in Georgia and vice versa in 2007 and how is IGCOB managing to further develop this approach?
A. I’d like to admit that a record amount of tourists travelled to Israel from Georgia during the Easter holidays. The same high indicators are estimated on the Israeli tourists to Georgia.
By 2010 daily flights are expected to be conducted from Israel to Georgia.
Considering the growth interest of Israeli investors and potential forecast, I could assume that this summer will be the very peak of Israeli investments in Georgia over the last 12 months. The real estate sector especially faces a “hot summer”.
Q. IGCOB assisted in organizing President Saakashvili’s visit to Israel, USA, and Turkey in order to promote and protect common business interests and relations. What is concretely implied in the common business interests and relations?
A. The strategy chosen by the Georgian government gives an ultimate incite and hope to foreign companies that their businesses will be safe, secure and successful in Georgia.
IGCOB was actively involved in arranging the Georgian President’s meetings with local businessmen during Mikhael Saakashvili’s visit to Israel, the U.S.A, and Turkey. In the frame of his visit to the U.S.A President Saakashvili met with world Jew the presidium- Conference of Presidents.
The above mentioned meeting was the very first precedent of opening new and wider opportunities for Georgian-Isreali relations by adding a global concept to the subject. Being a participant and organizer of the event, I’m more than sure that our organization got hundreds of new investors since the meeting.
Written by Kate Tabatadze
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