Why You Should Invest in Armenia

Looking to invest in a country with a promising future and a strategic location at the crossroads of Europe and Asia? We strongly recommend you consider Armenia, a nation with an ambitious and promising business environment that is actively attracting foreign investors. With a skilled and educated workforce, a pro-investment government, and a wide range of incentives for businesses, Armenia is ready to welcome you and your investments regardless. This post aims to reveal some of the reasons why it is a good idea to consider investing in Armenia.

In recent years, Armenia has made significant progress in creating a business-friendly environment, and it has become increasingly attractive to foreign investors. Armenia offers a strategic location for businesses seeking to access the markets of the Commonwealth of Independent States (CIS), the Middle East, Europe, and Asia. The country boasts a highly skilled, educated, and multilingual workforce, a stable political and economic environment, and a favorable tax system. With a growing technology sector and a vibrant startup scene, Armenia is fast becoming a regional leader in innovation and technology. More so, the government has been actively promoting its potential in tourism, technology, and renewable energy.

Wheels are turning

Armenia's investment policy focuses on:

• developing a favorable business environment,

• increasing transparency of the regulatory environment,

• developing market infrastructure,

• creating high-quality and high-paid jobs,

• supporting the rapid growth of human capital and population welfare.

The Armenian national law is very much focused on providing investors with a comprehensive and predictable working and legal environment. Foreign investors are protected by the Law “On Foreign Investments”, a state-of-the-art piece of legislation, that covers all the aspects of legal protection and promotion in accordance with the best practice and traditions available around the globe. Moreover, Armenia has concluded bilateral and multilateral Investment Promotion and Protection Agreements, with more than sixty states, including the United States, Korea, Japan, Germany, Singapore, Qatar, India, and China. Among the major investment treaties ratified by Armenia are the Armenia-EU Comprehensive and Enhanced Partnership Agreement (CEPA), and the Energy Charter Treaty.

To stimulate and support foreign investors and businessmen, as well as create favorable conditions for their activities, Armenia offers a wide range of supporting toolkits. These incentives aim to attract investment and encourage the development of sectors such as technology, tourism, and renewable energy. The incentives include tax exemptions, investment tax credits, accelerated depreciation, and customs duty exemptions, among others.

Also, Armenia benefits from the Generalized System of Preferences (GSP+) agreements with Canada, Switzerland, Japan, Norway, and the United States, and is implementing extensive reforms to create a favorable business environment and attract foreign investment. Here are some examples of strategies that Armenia has used to attract foreign investments:

• Improving the business environment by simplifying procedures for starting and running businesses, reducing bureaucratic red tape, and implementing policies that support entrepreneurship and innovation.

• Developing infrastructure through significant investments, including the construction of new roads, and the expansion of airports and cargo terminals. These infrastructure improvements have helped to improve the country's connectivity.

• Focusing on key sectors that have huge potential for growth, including IT, tourism, and renewable energy. In particular, Armenia heavily invested in the IT sector, which has become a major driver of economic growth and has attracted significant foreign investment.

• Offering incentives including tax breaks, subsidies, and other benefits. For instance, Armenia has established free economic zones (FEZs) where investors can enjoy tax exemptions and other benefits.

• Improving the regulatory framework through the establishment of an independent judiciary, the strengthening of property rights, and the implementation of anti-corruption measures.

Overall, attracting foreign investments requires a combination of factors, including a stable economic environment, favorable policies and incentives, infrastructure development, a skilled workforce, and a supportive regulatory framework. Armenia has a strong record of focusing on these factors, which help create an attractive, encouraging, and healthy investment climate.

Thriving phenomena

One of the main reasons to invest in Armenia is the country's thriving technology sector. Dubbed the "Silicon Mountains," Armenia has a rapidly growing tech industry, with numerous start-ups and established companies specializing in software development, AI, and cybersecurity. The country also boasts an extensive IT infrastructure and a highly skilled workforce, making it an ideal location for companies looking to outsource their technology needs.

Armenia's tourism industry is another area that offers promising investment opportunities. The country has a rich cultural heritage, with numerous ancient monasteries, churches, and historical landmarks. Additionally, Armenia is home to breathtaking natural landscapes, including majestic mountains, sparkling lakes, and verdant forests. With the government's focus on developing the country's tourism infrastructure, there is a lot of potential for investment in the sector.

Renewable energy is also a sector that is attracting interest from foreign investors. Armenia has abundant natural resources, including wind and solar power, and the government has been actively promoting the development of renewable energy projects. The country's energy sector is also undergoing reforms, creating an opportunity for private investment. With its abundant sources of solar, wind, and hydroelectric power, the country is aiming to achieve 30% of its energy needs from renewable sources by 2025.

The moment to shine

Armenia is a country with enormous potential for investment. With modern, well-educated, and hard-working human capital, a strategic location, and a favorable business environment, Armenia offers many opportunities for those looking to invest in various sectors. The government's commitment to deep and comprehensive reforms of the business environment, and the incentives it offers to foreign investors, further enhance the country's attractiveness as an investment destination. Armenia's potential is undeniable, and those who invest in Armenia today are likely to reap significant rewards in the years to come.

Investing in Armenia offers a unique opportunity to access a rapidly growing market with a young, talented, and tech-savvy workforce. With a strong commitment to transparency, business-friendly policies, and favorable investment incentives, Armenia is poised to become a hub of innovation and a gateway to new markets. So, you are welcome to come and join the growing community of investors who are unlocking the full potential of this hidden gem in the Caucasus region.