Republic Of Armenia
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  • 1. Republic of Armenia Country presentation Investment opportunities for Foreign businessmen by Arsen S. Sargsyan
  • 2. Key data about Armenia Location: Southwestern Asia, east of Turkey Area: 29’800 sq km Boundaries: 1’254 km; Georgia – 164 km; Iran – 35 km; Turkey – 268 km Climate: Highland continental; hot summers, cold winters Terrain: Armenian Highland with mountains Little forest land; fast flowing rivers Elevation extremes: lowest point – Debed river – 400 m; highest point – Mount Aragats – 4’090 m Natural resources: gold, copper, molibdenum, zink, alumina
  • 3.  
  • 4.  
  • 5. Population Population: 2’982’904 (July, 2005 est.) Population Growth rate – 0,25% (2005 est.) Birth rate: 11,76 births/1’000 population (2005 est.) Death rate: 8,16 deaths/1’000 population (2005 est.) Net migration rate: 6,1 migrant/1’000 pop. Life expectancy at birth: Total population – 71,55 years 67,97 years – male; 75,75 years – female Total fertility rate: 1,32 children born/woman Ethnic groups: Armenian – 97,9%; Yezidi (Kurd) – 1,3%; Russian – 0,5%; other – 0,3% (2001 census) Religions: Armenian Apostolic – 94,7%; other Cristian – 4%; Yezidi – 1,3% Languages: Armenian – 97,7%; Yezidi – 1%; Russian – 0,9%; other – 0,4% Literacy Definition: age 15 and over can read and write total population: 98,6% male - 99,4%; female – 98%
  • 6. Government
    • Government : Unitary republic  
    • President – Serje Sargsyan  
    • Prime Minister – Tigran Sargsyan
    • Independence from the USSR    Declared August 23 , 1990   
    • Recognized: September 21 , 1991   
    • Finalized December 25 , 1991   
    • Traditional foundation     of the Armenian nation - August 11 , 2492 BC
    • Kingdom of Urartu established 1000 BC
    • Kingdom of Armenia formed 600 BC  
    • Christianity officially adopted 301 AD
    • Democratic Republic   of Armenia established May 28 , 1918  
    • Constitution: adopted by nationwide referendum 5 July, 1995
    • Suffrage: 18 years of age; universal
    • Legislative branch: National Assembly (Parliament)
    • Election period: 5 years (next in 2008)
    • Juridical branch: Constitutional Court
  • 7.  
  • 8. Economy
    • GDP (purchasing power parity) $ 15.27 B (2005est.)
    • GDP (official exchange rate) $ 3.426 B (2005est.)
    • GDP – real growth rate 8% (2005est.)
    • GDP – per capita $ 5,100 (2005est.)
    • Labor force 1,2 m (2004)
    • Exports $ 800 M (2005est.)
    • Imports $ 1.5 B (2005est.)
    15 10 5 0 1999 2000 2001 2002 2003 Real GDP Growth (%) 0 5 10 15    
  • 9. Communiaction and transportation
    • Phone lines: 562,600
    • Mobile operators: 2
    • Country Internatuional Diling code: + 374 –(…) –(…)
    • Internet country code: ………. .am
    • Airports: 16
    Military Military branches: Army, Air Force, Air Defense Force Millitary Mnapower: Males age 18-49: 551,938 (2005 est.) Military expenditures: $ 135 million (6,5 % of GDP)
  • 10.  
  • 11. Macroeconomic overview   Armenia has a successful record of transition creating a favorable macroeconomic climate based on a market economy. The country has successfully implemented a comprehensive structural reform program. As a result there has been consistent growth since 1994, while since 2001 the GDP growth rate is above 10% every year. In 2003 the growth rate was 13.9%.   In 2003 Armenia become a full member of WTO . All rules and regulations of the Foreign Trade Policy of Armenia now conform with WTO requirements. Due to stable economic growth and an open trade system, exports have grown every year since 1999. In 2003 exports grew by 34%. Armenia Ranks as the Most Economically Free Nation in the CIS countries (see www.heritage.org/index ) Armenia was included in a list of countries with a high degree of economic freedom in 2004 occupying 44th place together with France according to the annual survey “Index of Economic Freedom” conducted by the Heritage Foundation /the Wall Street Journal/.   The appraisal of economic freedom was based on 50 economic indicators within the following categories: capital flows and foreign investments; banking and financial system; monetary, budget and trade policies; salaries and prices; state interference in the economy; property rights and regulations. 10 6 4 5 4 USA 117 131 137 133 116 Ukraine 106 119 105 63 49 Turkey 114 135 131 127 122 Russia 56 66 45 54 53 Poland 148 146 151 151 154 Iran 42 44 32 42 41 Hungary 18 19 20 20 22 Germany 44 40 45 39 37 France 91 113 108 114 120 Georgia 106 104 118 139 147 Azerbaijan 44 44 45 68 84 Armenia 2004 2003 2002 2001 2000 Rank Country
  • 12. List of World Countries’ GDP Ranking This list was updated on 14 November, 2006 2005 $22’300 Greece 45 2005 $22’600 South Korea 44 2005 $25’000 Israel 39 2005 $25’600 Spain 36 2005 $29’600 France 27 2005 $29’800 Sweden 26 2005 $30’100 UK 25 2005 $30’100 Germany 24 2005 $30’300 Netherlands 23 2005 $31’000 Finland 22 2005 $31’100 Belgium 21 2005 $31’600 Japan 20 2005 $31’600 Australia 19 2005 $32’200 Switzerland 18 2005 $32’500 Austria 17 2005 $33’900 Canada 16 2005 $34’000 Hong Kong 15 2005 $41’600 USA 7 2005 $42’800 Norway 6 2004 $43’800 Cayman Islands 5 2005 $45’200 UAE 4 2005 $50’200 Equatorial Guinea 3 2005 $65’900 Luxembourg 2 2004 $69’900 Bermuda 1 Date of info GDP – per capita Country Rank 2005 $1’900 Uzbekistan 188 2004 $800 Afghanistan 222 2005 $1’200 Tajikistan 208 2005 $1’900 Mongolia 187 2005 $1’900 Moldova 186 2005 $3’400 India 159 2005 $3’400 Georgia 157 2005 $3’500 Cuba 156 2005 $3’900 Egypt 146 2005 $4’700 Philippines 137 2005 $4’800 Armenia 133 2005 $5’400 Azerbaijan 128 2005 $6’800 China 118 2005 $7’100 Belarus 112 2005 $8’300 Kazakhstan 97 2005 $11’000 Russia 84 2005 $13’100 Poland 73 2005 $20’000 Czech Republic 53 Date of info GDP – per capita Country Rank
  • 13. Export by Products 0 20 40 60 Machinery Sewing Products Mineral Products Non-precious Metals Foodstuffs Precious and Semiprecious Stones 2002 2003
  • 14.  
  • 15. The investment policies of Armenia are considered to be the most open the CIS by international organizations. Foreign companies are encouraged do invest and entitled by law to the same treatments as local companies, moreover they have certain advantages. Armenia’s investment climate is continuously improving with a strong government commitment to attracting FDI, including reining the legislative framework. Large-scale privatization offers additional attractive opportunities. The law Foreign Investment , adopted in July 1994, regulates foreign investment in Armenia. It provides guarantees to foreign investors and protects investors from changes in the business related laws for 5 years. According to the Law a “ Foreign Investors ” is any foreign company or citizen, a person without citizenship, an Armenian citizen permanently residing outside of Armenia, or an international organizations that invests in Armenia. “ Foreign Investment ” is any form of property, including financial assets and intellectual property, which is invested by a foreign investor directly in the territory of Armenia, in any economic or other venture.
  • 16. Main Foreign Investors in the Republic of Armenia
  • 17.
    • Investment incentives
    • Political and Economic Stability
    • Favorable Investment legislation
    • Investment Guarantees
    • Strong Government Commitment to FDI Attractions
    • Well Educated, Skilled and Easili Trainable Workforce
    • Cost-Efficient Labor Force and Science Based Skills
    • No Limitation on Foreign Ownership
    • Competitive Energy Cost
    • Access to CIS and Middle East Markets
    • No Export Duty
    • Foreign Exchange Free Conversion
    • Free Exchange; Free Conversion
    • No Repatriation of Profit
    • No Restriction on Staff Recruitment
    • Corporate Tax Holidays
    • No Restrictions on Remittances
    • Stable Local Currency
    • Foreign investors can make investments in Armenia through the establishments of fully foreign-owned companies (including representations, and branches), the purchase of existing companies and securities, or the establishments of joint ventures. The company registration process takes about a week .
    • There are also incentives for exporters-no export duty and a VAT refund on goods and services exported.
    • There are no limitations on the volume and type of foreign ownership, the number of employees and access to financial sources. Although foreigners can only lease land, a company registered by a foreigners as an Armenian business entity does have right to buy land. Foreigners may obtain permission to use land under long-term leases, and concessions for the use of Armenian natural resources with the participation of an Armenian company.
  • 18. More than 10% of Investments in Armenia comes from Russia. Foreign Investments into real sectors of the Armenian economy totaled $178.5 M in the first half of 2006, having increased by 27,9 %. As REGNUM was informed the Armenian national Statistic Service, direct investments totaled about $86.3 M (9.2 % increase). In first half of 2006, 33,1% of direct investments were sent into communication sphere: 14.3% -into minerals industry; 9.4%- into air transportation sphere. Major investors into real sector of Armenian economy are Lebanon - $49.6 M (increase by 2.1 times), Greece - $37.9 M (decrease by 35%), Argentina - $17.2 M (increase by 3.7 times), Russia - $19.2 M (increase by 41.9 %), USA - $14.8 M (increase by 59.2 %), Germany - $12.1 M (increase by 63.1 times),
  • 19. Our Company’s Activity Attracting investments to be addressed to our Industry and Service. We’re working with number of Investment Procurement Companies and Investment Funds active in Emerging Markets.
  • 20. Thank You for paying attention Come and invest in Armenia