Armenia: current economic situation and investment climate
As a region to invest in and a business platform for umbrella economic cooperation projects the Republic of Armenia possesses a number of unique advantages and benefits.
In respect of economic development and growth, Armenia is a young state with unique benefits of geographic location and high scientific and industrial potential as well as an increased demand for foreign investment taken into account incipient stage of growth and development of the domestic industry infrastructure and the formative stage of the domestic industry infrastructure.
Considering the current situation, the economic leadership of the Armenian government is taking active steps to attract foreign investment and business partners with the aim of establishing joint ventures, setting up and developing long-term common projects and initiatives with regard to import and financial investment into the establishment, modernisation and upgrading of production and manufacturing facilities, particularly, in the sector of innovation technologies and IT-solutions in the domain of defence and security as well in respect of the purchase of armament and military equipment from foreign states. The issues of import, establishing and development of joint ventures and investment in the upgrade of infrastructure is also on the agenda with regard to mechanical engineering.
At present, innovation technologies and IT solutions are perceived as priority sectors of the Armenian economy. The government and economic establishment of Armenia make every effort possible to boost the existing cooperation and to encourage and bolster new projects and initiatives in all economic sectors. Government representatives draw up and implement programmes in the field of design, enhancement and development as well as, first and foremost, implementation and adoption of IT technologies and solutions in all spheres and areas of lifeof Armenian society. This process concerns the majority of government institutions and agencies of most diverse fields of activity as well as all aspects of social life of Armenian citizens.
Reiterating the high profile international economic activities of the Armenian government in respect of foreign trade, import-export issues, a wide range of different international economic activities, one should take note of the fact that the Armenian leadership responsible for economic matters as well as key economic institutions and entities are taking measures and steps to boost, strengthen, develop and diversify existing international cooperation ties, do everything possible to find new options, economic opportunities and forms of cooperation with foreign countries from a very large number of regions and parts of the world, with states from various political blocs with a widely differing, sometimes opposing political agenda. Hence, in this regard, the diversified Armenian market that is open to all kinds and forms of international cooperation, economic and investment interaction, could be considered the most preferable ground for drawing and setting up, sharpening and enhancing various promising projects, finding a variety of options and opportunities and establishing a framework for effective, mutually beneficial cooperation.
Another benefit of the congenial investment climate of Armenia that makes provisions for advantageous basis for highly effective international cooperation and economic interaction (both in the form of direct bilateral cooperation between foreign business entity/company and the business community of Armenia that would result in the bilateral business project between representatives of two states and, as another option, in the form of a multilateral business project between Armenian business and entities/companies representing several states that might result in some multilateral international business initiative with joint ventures or projects in the interest of third-party countries, having investment from business institutions/ companies representing several different states, this option is particularly relevant for the domains of defence, security, innovations with the emphasis on IT-solutions) is the political neutrality of the Republic of Armenia and its multi-vector, diversified foreign policy. The Armenian Party is ready to establish and develop political and economic cooperation with international stakeholders adhering to a widely different political agenda (sometimes, with opposite political views).From this perspective, one can say that Armenia takes up the role of the so-called ‘economic mediator’ allocating the business platform for comprehensive economic cooperation, launching of new international economic integration initiatives and setting off cooperation between business representatives from different international political groups and blocs, integrating the business of the Republic of Armenia into that kind of promising and benefitting initiatives and projects.
By virtue of its geographic location, constitutes a meeting point and the prospective ground for new initiatives and cooperation for world business community with key business companies and stakeholders from the former Soviet states: numerous CIS and world business representatives consider Yerevan as the ideal place for holding business encounters and negotiations in order to deal with economic affairs and issues and matters of any kind. One can observe an extremely wide and multifarious representation of various sectors of economy at numerous exhibitions, business forums and numerous business events.
III International Exhibition of Arms and Defence Technologies, ArmHiTec 2020, opens a new chapter in the international economic cooperation and will become a prospective business platform for interaction and strengthening cooperation ties between enterprises and companies from a large number of countries, regions and political alliances.
The idea and initiative to arrange the ArmHiTec exhibition comes from the Ministry of Defence of the Republic of Armenia. It is stipulated by two economic and business factors.On the one hand, the present state of the industry of Armenia does not permit carrying out effective re-equipment, rearmament, modernisation and upgrading of the national Armed Forces, and that entails the increase in imports of foreign cutting-edge armament, military equipment and packages of security systems and technologies. On the other hand, the specific nature of the military-industrial sector entails the necessity of development of the domestic military industry of the country. In both cases, the RA Ministry of Defence plays the key role in mapping out the strategy and determining the direction of development and way of implementation of the adopted plans and programmes, thereby taking up the role of the central coordinating body, the basic structural institution, the umbrella organisation that sets out political and economic business development goals.
III International Exhibition of Arms and Defence Technologies, ARmHiTec 2020, will be held from 26-28 March 2020 at the YerevanEXPO Exhibition Complex (city of Yerevan, Armenia). One can opt for any of the following forms of participation: exposition, business programme and contest within the framework of ArmHiTec. All of the abovementioned aspects touch upon a large number of topics and cover a wide range of subjects and issues concerning the development of the military-industrial complex, IT-technologies and solutions as well as production and scientific domain of activities of various companies, enterprises and organisations.