Amid deteriorating relations with the United States and the EU, the ruling party Georgian Dream is strengthening ties with non-democratic regimes, including Iran, known for its anti-American politics. Georgian Dream sees non-democratic countries as political and economic alternatives to the United States and Europe. This foreign policy direction has become particularly evident since 2022, following the start of the Russia-Ukraine war.

On May 22, 2024, Georgian Prime Minister Irakli Kobakhidze attended [1] the funeral of Iran’s president Ebrahim Raisi, who died in a helicopter crash. Later, on July 30, he attended [2] the inauguration of the new president, where chants of “Death to America” and “Death to Israel” were heard.

During a meeting with Irakli Kobakhidze, Iran's new president, Masoud Pezeshkian, stated [2] that strengthening ties with neighboring countries and the region is a priority of the Islamic Republic of Iran and its government’s foreign policy. He also emphasized Iran’s commitment, akin to Georgia’s, to harness their potential to strengthen bilateral relations. In response, Irakli Kobakhidze noted that Iran holds an important and constructive position in the region and welcomed the friendly atmosphere present in Iran-Georgia bilateral relations.

In 2021, Iran, Georgia, and Azerbaijan agreed [3] to establish a new transit corridor. The new route would connect the Persian Gulf with the Black Sea.

Alongside the political rapprochement, Georgia's economic relations with Iran have significantly grown over the past 12 years. Trade with Iran has tripled, the number of Iranian visitors has doubled, the number of companies registered by Iranian citizens has quadrupled, and direct investments have increased fivefold.

Economic Relations with Iran

Trade

In 2024, Georgia's foreign trade turnover with Iran increased to a record number – $322 million, which is nearly three times more than the trade figure in 2012. Over the past two years alone, trade with Iran has increased by 23%.

Exports of Georgian goods to Iran amounted to $37 million, while imports from Iran stood at $285 million.

Georgia primarily imports from Iran: Black metals ($142 million), Construction materials ($46 million), Plastic products ($34 million), Food products ($22 million).

The threefold increase in imports over the past 12 years has mainly been driven by higher imports of black metals and construction materials.

Data Source: National Statistics Office of Georgia

Tourism

The number of tourists arriving in Georgia from Iran is increasing. According to the Georgian National Tourism Administration, 146,000 visitors came from Iran in 2024 – nearly twice the number recorded in 2012. The highest number was in 2018, with 291,000 visitors. However, after the pandemic, tourism from Iran began to recover rapidly, growing by an average of 19% annually in 2023 and 2024.

In 2023, Iranian tourists spent $128 million in Georgia.

According to National Statistics Office of Georgia’s data, nearly 10,000 Iranian emigrants have moved to Georgia over the past 10 years to live there.

Data Source: Georgian National Tourism Administration

Iranian Business and Investments in Georgia

Between 2013 and 2024, Iranian citizens registered 9,300 companies in Georgia – four times more than the number of Iranian owned companies that existed before 2013.

Inflow of foreign direct investment (FDI) from Iran into Georgia began in 2006. Between 2006 and 2012, a total of $8 million was invested. However, from 2013 to 2024, investments increased fivefold, reaching $41 million. The majority of these investments were made in the trade, construction, industry, and transport sectors.