Despite the geographical distance, the ongoing conflict in the Middle East has a significant impact on Georgia’s economy. The consequences of the conflict are already becoming evident both in international markets and in Georgia’s trade and financial relations. It is particularly important to note that Georgia actively trades with countries that are directly or indirectly connected to the conflict zone, including Iran, the United Arab Emirates, and Saudi Arabia. The total volume of imports from these countries amounts to hundreds of millions of dollars and includes such important products as construction materials, industrial polymers, machinery, and various consumer goods. Accordingly, logistical disruptions, risks to maritime routes, and potential supply constraints are directly reflected in the Georgian market, primarily in the form of rising prices and supply shortages.
Bidzinashvili et al. (Thu,) studied this question.