The Share of Foreign Companies in Public Procurement is Growing

The 2024 public procurement data clearly show that the involvement of foreign companies in Georgia’s procurement system has increased both in terms of volume and financial scale. According to the report published by the State Procurement Agency, last year the system registered 2,623 non-resident suppliers from 77 countries, reflecting the country’s open tender policy and the gradual integration of its economy into global markets.

Based on the origin of the suppliers, Turkey once again ranked first with 409 companies, followed by the Russian Federation with 212, and Azerbaijan with 147. Other countries in the top ten include Italy (112), Armenia (69), Kazakhstan (55), Spain (49), India (46), and both Belarus and France with 37 suppliers each. This distribution demonstrates that companies from regional, European, and Asian markets are actively participating in Georgian tenders, signaling an openness to international procurement channels.

In terms of financial figures, the total value of contracts signed with non-resident companies in 2024 exceeded 156 million GEL—2.2 times higher than in 2023, when it stood at just 71 million GEL. Nevertheless, foreign companies still account for only a small share—2.45%—of the total value of tenders. In 2024, the total value of contracts awarded through tenders reached 6.35 billion GEL, of which 6.193 billion GEL was awarded to domestic companies.

These numbers indicate the state’s consistent priority of supporting local businesses. However, a clear trend is emerging—particularly in strategic sectors such as infrastructure, energy, and high-tech procurement—of an increasing need for foreign expertise in more complex tenders.

Amid growing international interest, it is crucial to review the systemic transparency of tenders, address technical barriers, and standardize requirements. This will enable the government to maintain its support for local businesses while also ensuring the procurement of high-quality goods and services aligned with international standards. In doing so, Georgia may achieve not only financial efficiency but also long-term innovation transfer.