Georgia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in georgia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

National Focus

Georgia is actively developing its digital economy by leveraging a robust IT sector, pro-business policies, and expanding connectivity to position itself as a regional technology hub. The government has prioritized digitalization through initiatives such as e-governance, strategic investments, and incentives for technology companies. Despite challenges such as a shortage of tech skills and low e-commerce penetration, significant business opportunities exist in areas like fintech and the expansion of e-commerce. Georgia has also emerged as an attractive destination for Western companies, including U.S. based firms.

State-owned enterprises, including the country’s largest hydropower plant, Enguri HPP, and the national electricity grid operator, Georgian State ElectroSystems, are integrating Enterprise Resource Planning (ERP) systems into their operations. Additionally, the Public Service Hall — a centralized facility for services such as passport issuance, national ID cards, business registration, and real estate and land ownership registration — has partially adopted blockchain technology, with plans for further development and full integration of its databases into a blockchain system.

Projected Digital Economy Growth

Georgia has established advanced e-governance systems, including a unified digital services portal, My.gov.ge, which provides access to over 700 transactional services, and a network of physical “one-stop-shop” Public Service Halls. To attract greater investment in its digital economy, the government offers tax incentives for international technology companies, including reduced profit and personal income taxes. Additionally, IT companies can operate within a Virtual Zone, a license status for certain foreign IT companies which provides simplified registration and zero corporate tax rates for the IT sector.

The government is actively fostering the development of a blockchain ecosystem through various state agencies implementing blockchain projects. In 2023, the National Bank of Georgia (NBG) partnered with the blockchain platform Ripple as its technology provider to pilot the Digital GEL, Georgia’s digital national currency. As of 2025, the Digital GEL has not yet been launched, but the project continues to make progress. Earlier, in February 2017, the Public Service Hall, which manages the State Registry for Land Registration, introduced blockchain-based registration procedures. These initiatives reflect the government’s commitment to promoting the blockchain ecosystem within the local market.

The Georgian government, through its state-owned Georgian Innovation and Technology Agency (GITA), is actively supporting startups in the IT sector by investing significant resources to develop a thriving IT services ecosystem. It supported the establishment of nine tech parks to foster innovation and technological development and is in the process of building a tenth.

The fintech sector is rapidly emerging as a key area of growth within Georgia’s digital economy. The country is a regional leader in the adoption of contactless payment systems. Visa ranked Georgia as the top country globally in contactless payments penetration.

Market Challenges

Georgia’s digital economy faces several challenges that hinder its full potential. These include a significant digital divide, particularly in rural areas, and a shortage of digitally skilled workers, including limited programming expertise. Despite government efforts to support startups, access to financing remains a major obstacle for emerging businesses. Weak e-commerce penetration, driven by poor inventory management and low consumer confidence, further limits growth in the sector. Cybersecurity concerns also undermine trust in digital services, while underinvestment in digital infrastructure and the need for more coordinated digital governance exacerbate these issues. Additionally, low public awareness of available digital services contributes to the underutilization of digital tools, highlighting the need for targeted outreach and education efforts.

In March 2024, Georgia enacted a new Law on Personal Data Protection inspired by the EU’s General Data Protection Regulation (GDPR). This legislation establishes comparable rights for data subjects and obligations for data controllers, aligning the country’s data protection framework with EU standards. The law introduces a new data protection authority and incorporates key principles such as data minimization, consent, and data security.

Regulatory environment

Georgia has previously undertaken regulatory reforms to harmonize its legal framework with EU standards as part of its path toward EU membership. Georgia’s regulatory framework for its digital economy is built on a comprehensive, EU-aligned legal structure rather than a single overarching law. It includes legislation governing electronic communications, e-commerce, personal data protection, digital signatures, and cybercrime. Key institutions, such as the Ministry of Economy and Sustainable Development and the National Communications Commission, oversee policy and regulatory implementation. Ongoing reforms aim to strengthen this framework, including the development of an e-commerce law and the establishment of a financial innovation office by the National Bank of Georgia to support the sector’s growth and modernization. These efforts reflect Georgia’s commitment to fostering a robust and internationally competitive digital economy.

The country’s national data protection law, in effect since 2024, mirrors GDPR principles and is complemented by sector-specific laws, e-commerce regulations, and digital transformation strategies. This law serves as the cornerstone of Georgia’s data protection framework, establishing robust rights for data subjects and clear obligations for data controllers and processors. It defines sensitive data categories similar to those outlined in the GDPR and incorporates key principles such as lawfulness, transparency, purpose limitation, and accountability.

Digital Trade Opportunities

Georgia’s digital trade opportunities are driven by its strategic location, supportive government policies, and a rapidly evolving tech ecosystem. These factors position the country as a digital and information hub connecting Europe and Asia. The Information and Communications Technology (ICT) sector is Georgia’s fastest-growing industry, with a significant increase in the number of IT companies, many of which are international firms fueling this growth. Georgia has a growing pool of tech talent, which has attracted global software companies to establish regional hubs in the capital, Tbilisi. Exports of IT services, such as software development, are experiencing robust growth, with key markets in Europe and North America.

The International Finance Corporation (IFC) and the World Bank have recognized fintech as one of the most promising digital sub-sectors for driving Georgia’s economic growth. The presence of major international financial institutions, coupled with a growing number of fintech startups, highlights the country’s potential to foster innovation and expand its digital financial ecosystem.

Robust digital governance creates significant opportunities for private sector partnerships with state enterprises. The World Bank has highlighted Georgia’s successful integration of digital solutions into government services, such as e-procurement and digital financial management systems, which have improved efficiency and accessibility.

Ongoing projects, including the planned construction of broadband and high-voltage transmission networks—such as the Black Sea submarine cable connecting Georgia with Romania— should enhance the country’s digital capacity and regional connectivity.

Resources

  • Ministry of Economy and Sustainable Development

  • Georgian National Communications Commission

  • National Bank of Georgia

  • Georgian Innovation and Technology Agency

  • World Bank

 

Contact: US Embassy Tbilisi: Tbilisicommerce@state.gov

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