Armenia stands as a beacon of opportunity for foreign investors due to its strategic
location at the crossroads of the Middle East, Europe, and the Caucasus countries.
Notably, the country serves as a gateway to the expansive markets of the Eurasian
Economic Union (EEU), including Russia, Belarus, Kazakhstan, and Kyrgyzstan, comprising
over 180 million inhabitants. Moreover, Armenia's membership in the Commonwealth of
Independent States (CIS) and its proximity to Iran further enhance its appeal as an
investment destination.
Key advantages of investing in Armenia include its
favourable legislative framework, ensuring protection of foreign investors' rights and
enabling free repatriation of capital and profits. Tax benefits, double taxation
agreements, and mutual promotion and protection agreements further bolster the
investment climate. Armenia's status as a member of the World Trade Organization (WTO)
and the World Customs Organization underscores its commitment to liberal trade policies,
with no restrictions on imports and free trade agreements with CIS countries.
The Armenian government has implemented measures to
enhance the business environment and combat corruption, promoting equal treatment for
foreigners and facilitating freedom of establishment. Notably, the Poverty Alleviation
and Corruption Act aims to improve transparency and accountability, fostering investor
confidence. The government's privatization program offers opportunities for foreign
investors to acquire interests in domestic companies, with regulations governed by the
Law on Privatization of State Property.
Investment policy and investment support
Investment Policy and Support in Armenia: Armenia recognizes investment policy as a cornerstone of its economic development strategy, aiming to leverage its competitive advantages, attract necessary investment volumes, and foster overall economic growth. At the heart of this strategy lies a commitment to liberal principles, integration into the global economy, and the establishment of Investment Policy and Support in Armenia: - Armenia recognizes investment policy as a cornerstone of its economic development strategy, aiming to leverage its competitive advantages, attract necessary investment volumes, and foster overall economic growth. At the heart of this strategy lies a commitment to liberal principles, integration into the global economy, and the establishment of an attractive investment climate. The government's investment policy is guided by a combination of principles, goals, and institutional frameworks designed to facilitate investment inflows and promote sustainable development.
Key Premises:The Armenian government views the promotion of investments as a pivotal aspect of its economic agenda, as outlined in its activity program. Since 1994, Armenia has embraced an "Open doors" policy towards investments, reinforced by legislation such as the "Law on Foreign Investment." This commitment aims to create a conducive environment for both local and foreign investors, ensuring equal and predictable regulations governing business activities.
Institutional Support:To effectively implement investment policies, Armenia relies on a network of state institutions dedicated to various aspects of investment promotion, support, and protection. The Ministry of Trade and Economic Development spearheads the formulation and implementation of investment policy, aiming to enhance the investment climate and attract capital inflows. The Business Support Council focuses on streamlining administrative procedures and reducing barriers to entrepreneurship, fostering a conducive environment for business activities. Meanwhile, the Armenian Development Agency operates on a "one-stop shop" principle, providing comprehensive services to investors. Additionally, the Securities Commission plays a vital role in ensuring investor protection and maintaining a fair and transparent securities market.
Goals of Investment Policy: The overarching goal of Armenia's investment policy is to drive sustainable economic growth, improve living standards, and safeguard the environment by boosting economic activity and increasing investment inflows. To achieve this, the investment policy focuses on creating a favourable investment climate, enhancing the legal framework, removing administrative barriers, attracting investments, optimizing regulatory bodies, and developing supporting infrastructures.
Principles Guiding Investment Policy:Armenia's investment policy is guided by several key principles, including maintaining legislative sustainability, providing equitable conditions for economic activity, offering preferential treatment to foreign investors, embracing liberal economic principles, protecting the interests of investments and investors, and adhering to international legal norms and practices.
