eign investment - 1155 million GEL (534 million USD) - (48.2%). Derived from this data we can state that investment in main capital shows a trend toward a positive increase (+2.7) from 1995-2001 compared to 1995. In addition, the increase in foreign investment is quite noticeable. This was mainly due to the construction of the oil pipeline and Supsa oil terminal in 1998.
In 2002 the positive developments in the construction sector continue to accelerate, resulting in construction of 545 buildings, among theses are the construction of a new Marriott hotel, 62 stores, 38 gas stations, and 12 food outlets (all in Tbilisi).
Market demand (Construction Materials) . Even though several local construction material manufacturing plants have been restructured and rehabilitated, the goods manufactured by them do not have a high demand among Georgian customers. Mainly this is due to low quality and narrow assortment. The only Georgian made product of comparatively good quality is cement, produced by the Rustavcement and Kaspicement companies. This situation represents a good opportunity for US firms to invest in and/or upgrade local building materials manufacturing plants. Presently, product imported from Turkey, Dubai, Iran and Russia occupies almost 95% of the Georgian building materials market. Even though they are perceived to be of a lower quality, the majority of people still buy them because of the low price. Nevertheless, another Georgian customer segment, the high income family, still prefers building materials made in the US or Europe, due to the high quality and regardless of the higher price.
The following imported materials are in the highest demand on the Georgian market:
В· Ceramic Products (tile, mats)
В· Insulated American style windows, doors.
В· Various colored wood and flooring materials.
В· Heat, ventilation, air conditioning systems.
В· Roofing materials
В· Varnish paints
В· Plastic tubes for water communication
В· Wallpapers
В· Lights and bulbs
В· Vinyl sidings
Due to the growing wave of construction, a large market share still remains unoccupied and is ready for new companies and potential investors. The construction sector will play an essential and important role in Georgia's further economic development and integration into the world economy.
4. Business
4.1 Company Registration and Licensing System
4.1.1 Company Registration System
Enterprise register. Registration of an enterprise is to be carried out by the Court by making due records in the Enterprise Register. The information concerning the registration is to be recorded into the Register Card....
