Gov’t using Arab investment project for propaganda, deal carries ‘high corruption’, demographic risks, opposition politician

Opposition politician Roman Gotsiridze has criticized the Georgian government’s recently announced $6.5 billion investment agreement with UAE-based investors, calling it propaganda-driven and fraught with corruption, economic, and demographic risks.

Speaking to Front News on Monday, Gotsiridze said that while the authorities portrayed the project as a historic success, its structure “does not protect Georgia’s interests” and could result in the country effectively losing ownership of valuable land assets.

“There is a lot of misinformation surrounding these so-called Arab investments. The government is using the project for propaganda purposes. Based on what we’ve heard from both the investors and the Georgian side, the deal contains serious corruption and other risks and fails to safeguard Georgia’s share of future revenues,” Gotsiridze said.

According to Gotsiridze, under the announced framework:

• A joint company will be established with one-third ownership by Georgia and two-thirds by the Arab side.
  
  

• Georgia’s contribution will consist of land worth well over $1 billion, including 250 hectares in Gonio and 600 hectares in Tbilisi.
  
  

• The foreign partner’s first one-third share will allegedly be granted in exchange for architectural design, which, Gotsiridze said, “is worth only a fraction of what Georgia contributes.”
  
  

• The second one-third would be allocated for “investment attraction,” a formulation Gotsiridze described as “the most dangerous and corrupt element of the deal.”
  
  “If the project is financed through loans taken by the joint venture - likely from Arab funds - Georgia would end up repaying debts from the project’s proceeds and receiving only a fraction of the profits. This is not investment; it’s plunder,” he warned.

Gotsiridze cited additional concerns, including the potential sale of up to 60% of residential properties in the planned complexes to foreign buyers, primarily from Arab states and possibly Russia.

“This effectively means two new Arab residential zones - one in Gonio and one in Tbilisi - each housing several thousand people,” he said, warning that such projects could have demographic, social, and ecological consequences.

In Tbilisi, he noted, the planned development near Krtsanisi Forest Park could cause serious environmental damage, while in Gonio, the establishment of a large foreign residential area near the Turkish border could create “religiously and socially sensitive challenges” for the Adjara region.

The opposition politician stressed that all details of the project must be made public, and the government must clarify whether the land will be transferred to investors as permanent property or long-term lease, citing Serbia’s precedent of 99-year leases.

He also warned against any tax exemptions or privileges, calling them “direct indicators of corruption.”

“Projects of this type in Serbia, Hungary, and Albania have been linked to major corruption scandals. In our case, the risks are the same - the state invests billions in assets and receives only minimal dividends in return,” Gotsiridze said.

The remarks come amid heightened debate over the government’s agreement with Eagle Hills, which the ruling party has hailed as the largest foreign investment in Georgia’s history. Opposition leaders, however, continue to question its economic fairness, transparency, and long-term impact on national interests.