Oct. 24 (Bloomberg) -- Georgian President Mikheil Saakashvili is turning to the Middle East to revive foreign investment that almost evaporated as the Black Sea nation struggled to recover from a war with Russia and the global slump.

Saakashvili visited the United Arab Emirates several times this year, netting as much as $1 billion “within the next two to three years,” he said in an interview in Tbilisi today. He returned recently from Kuwait and goes next to Qatar.

Rakeen, the developer owned by the Gulf emirate of Ras al- Khaimah, will begin “in a few months” to build “the biggest airport in the Caucasus” at the Black Sea port of Poti, which it acquired last December, Saakashvili said. “That will be a major hub for the region. Consider also that it’s midway between most of the Gulf destinations and Europe.”

The $12.8 billion economy suffered about $1 billion in damage when its army was routed by Russia in the August 2008 war over the region of South Ossetia. Growth may resume this quarter, though 2009 foreign investment won’t exceed $1 billion, compared with $2 billion initially forecast by the government, Finance Minister Kakha Baindurashvili said on Oct. 6.

The International Monetary Fund said in May that Georgia’s economic performance this year largely depends on donor money. The government forecasts a contraction of 1.5 percent in 2009 and 2 percent growth in 2010.

The former Soviet republic won pledges of $4.55 billion in international aid in the wake of the conflict, including a two- year $1 billion offer by the U.S.

Dubai, Singapore

Saakashvili said the government’s 2010 growth forecast is “conservative,” and the economy may grow as much as 6 percent when his Economic Liberty Act, which includes caps on budget deficits and state spending and debt, takes effect. Foreign investment may also rise as a result, he said.

The president said he plans to turn Georgia into a center for financial services and commerce, similar to Dubai and Singapore, along with tourism and energy transit.

In addition to the development at Poti, Saakashvili said the government is seeking investors to develop a port at Anaklia, “the deepest natural port” in the Black Sea area, which would provide “the shortest way from China to most European destinations.”

A delegation of Iranian investors arrived in Tbilisi yesterday to pursue about $300 million of possible projects in infrastructure, tourism and banking, Economic Development Ministry spokeswoman Nino Daraseli said by telephone.

Special Economic Zone

Sophie Mamardashvili, a Tbilisi-based Rakeen spokeswoman, said the company is completing plans for the Poti airport and “the project will go ahead in the near future.”

Rakeen paid $65 million for 49 percent of the Poti port in December after previously winning a government competition to develop the port and acquiring a 51 percent stake. Saakashvili opened the country’s first special economic zone at Poti in April 2008.

The company also has two development projects in Tbilisi, including a 72,836-square-meter residential and office complex on the outskirts of Tbilisi, according to the its Web site.

To contact the reporter on this story: Helena Bedwell in Tbilisi at hbedwell@bloomberg.net

Last Updated: October 23, 2009 16:00 EDT