UAE investors, who are active in Georgia, are concerned about the future of their multimillion-dollar projects in the Central Asian country.

A source at the International Finance Corporation (IFC) told Emirates Business that Rakeen, the real estate company based in Ras Al Khaimah, is planning several projects in Georgia including the first and largest mixed-use development there. The Abu Dhabi Group is engaged in two major projects in Georgia.

"We have plans for projects in Georgia and don't care about the current military conflict. We have just bought a plot of land in Georgia to develop in future and we have our staff working there," said Dr Khater Massaad, Chief Executive Officer and Chairman of Rakeen. The Georgian project was officially launched a few months ago by Gigi Ugulava, Mayor of Tbilisi.

Reports suggest the group has plans to invest $300 million (Dh1.1bn) investment in the country. The Abu Dhabi Group runs the KOR Bank, a new bank formed by the group by taking over Standard Bank of Georgia.

Many investors view investment in Georgia as a gateway to the Central Asian market. The first Rakeen project is located on an arterial road that links Tbilisi with other cities in Georgia and the Caucasian region.

The IFC source said that Rakeen project in Georgia is to develop a mixed-used commercial property consisting of a shopping mall and two office towers, at an estimated cost of $255m, partly financed by IFC through a $45m loan and $85m syndicated loan from participating banks. Rakeen has also planned Tbilisi Heights, a residential and commercial space on 180-hectare land in Tabakhmela, five-star hotels in the Black Sea coast Batumi and Gonio and Vardzia in Southern Georgia.

According to a project report submitted to IFC by Zaza Mikadze, General Director, Rakeen Georgia, the project is located on a 7.3 hectare site about 10km from downtown Tbilisi, the capital city of Georgia and Rakeen plans to establish a separate company to sell the project in a phased manner over a four to five years period.

The proposed project in Georgia will address the growing local demand for quality property developments fuelled by Georgia's strong economic performance in the past few years and rising income levels.