Foreign investments in constant decline in Armenia

By AzerNews

Armenia remains an unattractive country for foreign investors due to lack of an appropriate business environment in the country.

The amount of foreign investments in Armenian economy is constantly declining, local economists alarmed.

"This unpleasant tendency suggests that the Armenian authorities have not created an appropriate investment climate," Executive Director of the Armenian Union of Employers Gagik Makaryan told journalists.

He said foreign investments amounted to $650 million in 2011, in 2012 - $540 million, in 2013 - already $260 million. "Thus, the investments have declined by almost three times," Makaryan noted.

The businessmen believe that the main factor which affects negatively the investment environment is absence of financial protection.

American businessman of Armenian origin Misak Tebeletyan sees corruption, bureaucratic repeated delays, judicial system's weakness and unequal conditions for the businessmen as the main obstacles for the foreign investments.

Local enterprises also suffer from the country's unfit business climate. Domestic investors don't want to invest or expand their business in Armenia. Furthermore, the owners of the major industries in Armenia stay abroad, as they are not interested in launching any business in the country.

Moreover, Armenia is under blockade in the South Caucasus region due to its aggressive policies towards neighboring Azerbaijan. So, the country is isolated from large-scale economic projects. With zero economic roles in the region, Armenia cannot be a destination for foreign investments.

Neighboring Turkey also keeps Armenia isolated from regional projects. Yerevan's aggressive policies towards Azerbaijan and groundless claim on the so-called genocide have hindered the Armenian-Turkey economic relations.

Armenia urgently needs foreign investments, but the country's economic deadlock is ruining the government's plans to attract them.