Armenia as a new destination for foreign investments: Deputy PM’s interview to Investment Monitor
09:50, 1 April, 2022
YEREVAN, APRIL 1, ARMENPRESS. The primary goal of Armenia’s economic policy is to build a knowledge-based, export-oriented and inclusive economy with an equally enabling environment for local and foreign companies, Deputy Prime Minister Hambardzum Matevosyan said in an interview to Investment Monitor, talking about the country's tech prowess and tourism ambitions.
“The role the technology sector plays in diversifying and, more importantly, upgrading Armenia’s economy is significant. The ICT sector currently comprises about 4% of Armenia’s GDP and has been playing a decisive role in forming the nation’s middle class”, he said.
He stated that Armenia’s IT prowess has enabled the upgrading of the ICT industry into new sub-sectors, such as data science, artificial intelligence and engineering, among others, “which is key in the process of determining our niche in the global tech market”.
“Often referred to as the ‘Silicon Valley of the Caucasus‘, we hope to live up to this reputation. However, instead of playing catch-up in the global race, we are focusing on building a solid technological ecosystem, where new ventures can emerge and grow in a sustainable manner”, the deputy PM said. For this purpose, he noted, the Armenian government adopted a comprehensive approach towards the development of ICT sector – from preparing future talents to sustain Armenia’s labour effectiveness in the long term to offering incentives and targeted support to tech companies.
“Thanks to specialized university programs, government assistance and competitive labour costs, Yerevan has been able to attract multiple renowned IT companies that currently operate in Armenia. To name a few, Adobe, EPAM, Oracle, SADA, Siemens, Synopsis, Teamviewer and VMware have hired hundreds of local specialists for their global operations. Similarly, home-grown companies are also fuelling Armenia’s economic growth. Two Armenian-founded companies – Picsart and Service Titan – have already become unicorns and at least ten companies are in the process of achieving unicorn status in the next year or two, and this is something we are proud of”, he noted.
The deputy PM emphasized that Armenia has the necessary tools to succeed internationally and remain competitive in terms of attracting foreign investment. Talking about the human capital and skills, he reminded that Armenia is ranked 33rd among 137 countries in the quality of its mathematics and science education. “There are free educational programmes throughout Armenia that teach youngsters programming, graphic design, 3D modelling and much more”, he said.
Asked what actions are being taken to attract more investment into Armenia’s technology and tourism sectors, the deputy PM said Armenia utilizes the available business platforms to ramp up investments into these sectors.
As for the COVID-19-related challenges, Hambardzum Matevosyan said “like most countries, Armenia [suffered badly from] the worldwide lockdown that unquestionably affected the tourism industry”. “The silver lining, however, was the revival of domestic tourism. Locals began visiting the places they had never been before. It was this dynamic that kept the industry afloat. Armenia also maintained a balanced approach regarding the travel restrictions and stayed relatively open to the world”, he said.
“According to official statistics, the number of tourists who visited Armenia in 2021 increased by more than 130% year on year, when compared with 2020. Although it will take time for international arrivals to return to pre-pandemic levels, most tourism professionals see better prospects for 2022. We expect large waves of tourists in the upcoming months as global restrictions become more lax. Additionally, works are ongoing to improve Armenia’s broader connectivity to make travel for tourists more seamless. We have noticed that travellers are looking for new and niche destinations these days. For many visitors, Armenia is a hidden gem with a wide range of activities”, deputy PM Matevosyan emphasized.
According to him, wine, culinary, luxury and extreme tourism have all picked up steam in recent years. Medical tourism is also gaining momentum due to the quality and affordability of Armenia’s healthcare sector, he added. “What visitors really appreciate about Armenia is the combination of rich cultural sites, diverse nature, hospitality, and safety. For the record, there are 25,000 monuments from different eras and three Unesco World Heritage Sites”, he said.
Asked what initiatives the government is undertaking to boost the investment flows, the deputy PM said: “The primary goal of Armenia’s economic policy is to build a knowledge-based, export-oriented and inclusive economy with an equally enabling environment for local and foreign companies. To this end, our everyday efforts are concentrated on making business regulations and the provision of public services more efficient, as well as providing foreign investors with necessary investment protection guarantees”.