On May 15, the Tbilisi Marriott Hotel hosted the highly anticipated Georgia and Armenia Tech Hub Summit 2023, a collaborative effort between Georgia-Based law firm Klein & Pantsulaia and Armenia-based law firm Klein & Iskandaryan. This prominent event, supported by GEORGIA TODAY and Tbilisi Marriott Hotel, aimed to explore the burgeoning tech landscapes of Georgia and Armenia, bringing together industry leaders, innovators, and international experts.
The summit kicked off with a captivating keynote speech by Arsen Babayan, representing Adobe. His address set the tone for a stimulating day ahead, marked by engaging panel discussions and insightful debates. Notable participants included UK’s Exactpro, Devexperts, and America’s Lineate, represented by Giorgia Tsikoloia, who brings huge experience as the former Deputy Chief of Mission at the Embassy of Georgia in the United States.
The focus of the event, amongst other issues, made comparisons between doing business in Armenia and Georgia, with lots of detailed discussions and debate re staffing and related issues as concerns both countries.
While both economies have expanded by double digits in the last year (two of the strongest growing economies in the world, the regional Tech Foreign Direct Investment (FDI) has well outstripped these figures, since there has been a dramatic and sudden shifting of Tech firms from Belarus, Ukraine and Russia, seeing dozens of foreign tech firms appearing in the region since last year. There are several instances where up to 1500 employees of a company relocated to the South Caucasus. Not only has this shocked the local job market, but it has impacted on commercial/residential rental prices and the general cost of living.
During the event, Arsen Babayan shared his views on the significance of the summit as a step toward uniting the communities of the two featured countries. He expressed his wholehearted belief in the potential of Georgia and Armenia, not just for the region but for the world as a whole. Babayan emphasized the importance of working together and acting as a unified front, rather than perpetuating historical divisions. He stated, “I actually view this opportunity as one of the first steps in bringing the communities of both countries together, because, quite honestly, I believe wholeheartedly in that. And as it comes to Georgia and Armenia, so it will generally to the region. Hopefully, one day all of the countries in the region will act as a single front in the world. I believe that actually trying to increase the size of the pie will work for our nations rather than trying to split the pie, which we have done a lot of times in history and which never worked.”
This sentiment echoed the overall theme of collaboration and cooperation that permeated the summit. Participants recognized that by joining forces, Georgia and Armenia can tap into their collective strengths, harness the immense potential within the region, and present a formidable presence on the global stage.
According to the insights shared by Daniel Klein, the esteemed representative from Klein & Pantsulaia, Georgia boasts a remarkable presence of over 40 foreign tech companies, a significant portion of which have also established operations in Armenia. Curiously, despite being considered part of the same geographical area by multinational tech firms, there is a discernible lack of substantial initiatives between the two nations. This has created an undeniable demand for a greater number of similar events and initiatives, both on a corporate and governmental scale. While these foreign tech players view Georgia and Armenia as integral components of their business landscape, there appears to be a prevailing absence of collaboration concerning tax rates, incentives, and employment practices. Given the relatively modest size of their respective markets, it is paramount that the two countries shift their focus from competition to cooperative endeavors in order to enhance their competitive stance against regional counterparts such as Romania and Bulgaria. Acknowledging this imperative, Klein & Pantsulaia is actively pursuing the establishment of a foreign tech trade association that can encompass the broader region, fostering enhanced synergy and comprehensive cooperation.
