Strengthening Ties: Georgia and Spain Deepen Economic Cooperation – An Interview with Ambassador Alexander Chkuaseli

In today’s globalized world, economic cooperation plays a pivotal role in the development of nations. In recent years, the relationship between Georgia and Spain has shown significant progress in this regard.

Business Partner spoke with Alexander Chkuaseli, Ambassador Extraordinary and Plenipotentiary of Georgia to the Kingdom of Spain and Georgia’s Permanent Representative to the United Nations World Tourism Organization, about current developments, ongoing projects, and future prospects. He offered in-depth insight into opportunities that could further advance bilateral economic cooperation.

Let’s begin with a general overview. How would you assess the current state of economic and business relations between Georgia and Spain? What is the trajectory, and what potential do you see?

Trade and economic ties between Georgia and Spain are developing dynamically and continue to show a positive trend. This is encouraging, though the potential for further cooperation is much greater. Georgia is not a small consumer market; Spanish products are not only sold locally but also re-exported. Given our geographical location and favorable business environment, Georgia can engage with Spain on a much broader scale. We serve as a strategic hub in East-West trade, enabling Spanish products to reach markets in Central Asia, the South Caucasus, and the wider region.

Spain, in turn, represents a major consumer market, offering Georgia significant opportunities for exports — not only to the EU but also to Latin America.

Before my appointment as Ambassador, I served as Georgia’s first Consul General in Barcelona for nearly four years. During that time, we laid the groundwork for several significant regional initiatives — not only in Catalonia but across multiple regions. For example, we developed a strategic partnership with the Port of Barcelona, a major logistics hub connecting Latin America and Europe. We also initiated cooperation between the Chambers of Commerce and Industry, with the first working meeting taking place in 2022. Equally important has been our collaboration between tourism administrations, close engagement with local governments, and efforts to uncover new municipal-level opportunities.

Economic partnerships are often assessed by development potential. Could you share recent trade and investment statistics between the two countries?

I am pleased to report that Georgia-Spain trade turnover continues to grow annually. From January to June 2025, bilateral trade increased by 30.4%, reaching USD 149.4 million. Of this, exports totaled USD 30 million — a 72.8% increase — while imports stood at USD 119.6 million, up 22.8%.

At the Embassy, one of our top priorities is to expand economic and investment cooperation and attract more Spanish investors. We are actively engaged in this effort.

Why should Spanish investors consider Georgia? What are the country’s strategic advantages, and which sectors are particularly appealing?

Georgia is among the world’s most business-friendly countries. This is validated by international rankings — for example, the World Bank’s Doing Business report placed Georgia 7th out of 190 countries. We continue to lead in the Eastern Europe and Central Asia region.

Our appeal stems from a combination of strategic location at the crossroads of Europe and Asia, good governance, liberal trade and tax policies, minimal bureaucracy, a stable macroeconomic environment, green energy potential, and global access through a free trade regime.

In 2022, Spain was Georgia’s largest investor country. Spanish companies such as FCC Aqualia, ELT Group, and Barcelo Group already operate in Georgia and are looking to deepen engagement. Notably, IDOM — a major international engineering and architectural firm — has worked on infrastructure projects in Georgia since 2004. This February, IDOM opened a Tbilisi office, underscoring Georgia’s favorable investment climate and their intent to expand.

Georgia regularly participates in FITUR, Madrid’s leading tourism exhibition, which brings together over 150 countries and 10,000 companies. Such forums help build connections and draw international attention.

We also promote press trips and familiarization visits to Georgia for Spanish tour operators, journalists, and bloggers — some of whom are currently visiting.

You mentioned the importance of direct flights. How are efforts progressing in this regard?

We are actively engaging with Spanish airlines to establish direct flights between our capitals. Carriers like Iberia and low-cost airline Vueling would significantly increase connectivity, fostering both business and cultural exchange.

Beyond tourism, what is the Embassy doing to strengthen broader business ties? Any new initiatives planned?

Despite geopolitical challenges, Georgia has maintained strong economic stability. Smart policies and structural reforms have helped us weather global shocks and achieve impressive growth. Georgia is considered a top reformer by international standards.

We’re investing in regional infrastructure — including railway modernization, the Anaklia deep-water port, and new logistics centers. These projects will bolster our position as a regional transport hub.

We’re in regular dialogue with Spanish economic institutions and business associations. Our goal is to jointly identify actionable steps to expand trade and investment. We also publish articles in the Spanish media to highlight Georgia’s economic potential.

In May 2025, the Royal Spanish Academy of Diplomacy published a special edition of its Diplomacia magazine fully dedicated to Georgia. It showcased the historical and current ties between our countries and was distributed to diplomats, ministries, universities, and businesses across Spain and Latin America — helping to raise Georgia’s profile significantly.

What is the status of cooperation with Spanish chambers of commerce and business associations? How can Georgian businesses get involved?

At present, institutional ties between Georgian and Spanish chambers of commerce are limited — but this presents a tremendous opportunity. We’re developing plans to establish stronger cooperation. We aim to collaborate with major organizations such as the Confederation of Spanish Business Organizations, the Spanish Export and Investment Agency, and the Federation of the Food Industry.

The Embassy will serve as a bridge, helping Georgian entrepreneurs connect with Spanish counterparts and facilitating the creation of joint business platforms and MOUs.

What role does the Georgian diaspora in Spain play in economic engagement?

While the Georgian diaspora in Spain is relatively small, its presence is growing both in numbers and economic activity. Currently, their business efforts are focused on food services, local trade, and small-scale logistics. With better organization and support, the diaspora can play a bigger role in bilateral trade. The Embassy fully supports such initiatives.

Looking ahead five years, where do you see the greatest potential in Georgia-Spain economic cooperation?

We have ambitious plans for the next five years. I see particular potential in the tourism sector — Spain, as one of the world’s top tourism economies, can offer valuable expertise, investments, and service standards. Spanish hotel brands such as Melia, Barcelo, and Riu may find Georgia a promising market. Barcelo already operates here successfully.

Energy is another key sector. Spain is a leader in wind and solar energy. Georgia has significant hydro resources and growing interest in solar development. Cooperation in this field aligns with both countries’ EU energy goals.

Additional areas with high potential include food exports, digital technologies, innovation, logistics, and infrastructure. At present, 114 companies with Spanish capital are registered in Georgia, covering construction, logistics, energy, food, and tourism — but the potential for expansion remains enormous.

Let’s turn to tourism. How would you describe the state of tourism between the two countries?

Tourism is a pillar of Georgia’s economy, and we’re becoming an increasingly attractive destination for European and Asian travelers. We have four-season tourism potential — from ski resorts to cultural heritage.

Spanish tourism to Georgia is growing. From Kutaisi, direct flights to Madrid and Barcelona have helped increase visitor numbers. Expanding this network — especially with new carriers — will deepen ties.

We maintain close collaboration with Spain’s Ministry of Industry and Tourism, underpinned by bilateral agreements. Our shared goal is to enhance mutual tourism flows.

Spain, with nearly 48 million people, is a key market for us. Ski tourism, gastronomy, and cultural experiences are particularly appealing to Spanish visitors.

Has the number of Spanish tourists to Georgia increased recently?

Yes. From January to June 2025, 7,945 Spanish tourists visited Georgia — up 25.9% compared to the same period in 2024. Spanish visitors are especially interested in mountain tourism, food, wine, and cultural experiences.

We are also pleased to see growing interest in traditional Georgian winemaking, particularly qvevri wines, and the popularity of Georgian cuisine is rising in Spain.

Are there any active PR or marketing campaigns in Spain to promote Georgia as a destination?

Absolutely. Georgia’s Embassy in Spain is accredited to the UN World Tourism Organization, which helps promote our country’s tourism potential on a global stage.

We work closely with the Georgian National Tourism Administration, which regularly participates in FITUR Madrid — one of the world’s largest tourism expos. There, visitors can discover Georgian culture, cuisine, and travel opportunities. Delegates also meet with Spanish and global tourism industry leaders to explore new partnerships.