by HE Varuzhan Nersesyan, Ambassador of Armenia to the UK

Armenia is a landlocked country located in the South Caucasus, with a rich history and diverse culture. In recent years the country has made significant progress on enhancing its business environment, creating opportunities and favourable conditions for investment, with a focus on the country’s technological transformation of traditional industries and its rise as a regional tech leader.

The Armenian government is committed to building a knowledge-based, export-oriented, and inclusive economy. It encourages the inflow of foreign investments that advance innovation, generate knowledge, and facilitate technology knock-on effects that support economic advancement.

Engine
Armenia is also diversifying its economy with pioneering sectors, creating ample investment opportunities. The rise of Armenia’s tech sector has galvanized industries such as biotech, agrotech, and information and communications technologies, which have become an engine for sustained economic growth.

With a steadily growing and resilient economy, Armenia has much to offer foreign investors. Registering over 12.6 per cent of GDP growth in 2022, Armenia was the 4th fastest growing economy in the world according to
the IMF.

Open door
Armenia’s investment legislation grants equal treatment to foreign investors, which means a legal regime no less favourable than the one for citizens, unless a respective treaty provides a more favourable one.

There are no restrictions on remittances and repatriation of profits, free exchange of foreign currencies and no limitations on staff recruitment. The country’s favourable business climate and ‘open-door’ policy is also reflected in international reputable rankings where Armenia is ranked one of the highest in the region.

Gateway
Geographic location has enabled Armenia to play a bridging role not only between different cultures and civilizations, but also between different economies. Although Armenia has a relatively modest internal market, it offers different models of economic cooperation and serves as a gateway to major world markets.

Armenia has maintained a high level of cooperation with the EU with a Comprehensive and Enhanced Partnership Agreement in force since 2021. This provides a framework to work together to strengthen democracy and human rights, create more jobs and business opportunities, fairer rules, more safety and security, and a cleaner environment as well as better education and opportunities for research.

Armenia-UK ties
A similar agreement, expected to be finalised and signed with the UK, will strengthen the institutional cooperation between our countries and open new perspectives for trade and economic development.

Last year’s Armenia-UK business forum in London, advanced commercial and trade affiliations between the two nations. It served as a platform within the UK for spotlighting Armenia’s economic prowess across various sectors including infrastructure, finance, and technology – areas ripe with opportunities for British investors seeking lucrative markets to explore.

Changing realities
Armenia has been transformed into a country of equal opportunities and fair competition. Investment regulations and legal framework is being systematically improved and modernised to respond to the changing realities and the needs of the private sector.

Continuous reforms combined with facilitated access to foreign markets, stable macroeconomic situation and a solid banking system, various incentive mechanisms and, most importantly, competitive human capital make Armenia a highly attractive investment destination.

www.uk.mfa.am/en