OVER 3,5 THOUSAND ENTERPRISES WITH FOREIGN CAPITAL PARTICIPATION
OPERATE IN ARMENIA

YEREVAN, AUGUST 25, NOYAN TAPAN. Over 3.5 thousand companies with
the participation of foreign capital are now operating in Armenia,
which is by 2,000 more than in 2003. RA Deputy Minister of Trade
and Economic Development Tigran Davtian told NT correspondent about
it. According to him, in 2003, the amount of foreign investments
in Armenia made about 200 mln USD (without the banking system and
official transfers), in 2005, this amount increased to 500 mln USD. It
is expected that by results of 2006, these investments will amount to
over 500 mln USD. According to expert opinions cited by T. Davtian,
in 1998-2004, 60-70% of foreign investors operating in Armenia were
Diasporan Armenians or foreigners having business links with them,
while the share of investments made by Diasporan Armenians over the
indicated period made up 25-30%. The deputy minister said that the
Diaspora’s activity is especially considerable in opening small and
medium enterprises in food industry, jewelry making, diamond cutting
and tourism, and investing in these sectors. In T. Davtian’s opinion,
the Diasporan Armenians’ potential for making investments in Armenia
is much greater. He said that in 2005, the amount of remittances
transferred to Armenia by Diasporan Armenians and Armenian citizens
working abroad made about 1 bln USD, while investments made in the
country by Diasporan Armenians totalled 150 mln USD. "A few years ago
this amount of investments in case of annual GDP of 1 bln USD was a
considerable result, whereas the same amount cannot be considered
large in ratio to GDP of 6 bln USD forecast for 2006," the deputy
minister said.