The U.S. Department of State’s Investment Climate Statements help U.S. companies make informed business decisions by providing up-to-date information on the investment climates of more than 170 countries and economies. They are prepared by our embassies and consulates around the world and analyze each economy’s openness to foreign investment. Topics include:

• Openness to, and Restrictions upon, Foreign Investment,

• Investment and Taxation Treaties,

• Legal Regime,

• Industrial Policies,

• Protection of Property Rights,

• Financial Sector,

• State-owned Enterprises,

• Corruption,

• Labor Policies and Practices,

• Political and Security Environment, and

• U.S. International Development Finance Corporation (DFC) and Other Investment Insurance or Development Finance Programs

Each statement provides a starting point for U.S. firms and offers a point of contact at the relevant U.S. embassy or consulate abroad.

These reports are also a resource for foreign governments to create business environments that ensure fair treatment for the United States and our companies and investors. 

To access the full Investment Climate Statement, visit the U.S. Department of State Investment Climate Statements website

Executive Summary - Armenia

Armenia has received consistently respectable rankings in international indices that review country business environments and investment climates. U.S. companies appear to agree – projects representing significant U.S. investment are present in Armenia’s energy and mining sectors. U.S. investors in the banking, pharmaceutical, and information technology sectors, among others, have also acquired assets in Armenia. Armenia presents a variety of opportunities for investors, and the country’s legal framework and government policy aim to attract investment. However, the investment climate is not without challenges. Obstacles include Armenia’s small market size, relative geographic isolation due to closed borders with Türkiye and Azerbaijan, weaknesses in the rule of law and judiciary, and a legacy of corruption. Net foreign direct investment inflows exceeded the global average in recent years, reaching 2.6 percent of GDP in 2021 and 5 percent of GDP in 2022. In 2023, Armenia’s gross domestic product (GDP) growth exceeded expectations with an 8.7 percent increase driven by trade, construction, and information and communications technology (ICT) services.

Armenia signed a Trade and Investment Framework Agreement (TIFA) with the United States in 2015, and in the same year became a member of the Eurasian Economic Union (EAEU), a customs union that brings Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia into a single integrated market. In 2017, Armenia signed a Comprehensive and Enhanced Partnership Agreement (CEPA) with the European Union, which aimed in part to improve Armenia’s investment climate and business environment.

Armenia imposes few restrictions on foreign control and rights to private ownership and establishment. There are no restrictions on the rights of foreign nationals to acquire, establish, or dispose of business interests in Armenia. Business registration procedures are generally straightforward. However, according to foreign companies, otherwise sound regulations, policies, and laws are sometimes undermined by problems such as the lack of independence, capacity, or professionalism in key institutions, most critically the judiciary. Armenia does not limit the conversion and transfer of money or the repatriation of capital and earnings. The banking system in Armenia is sound and well-regulated, but investors note that the financial sector is relatively undeveloped. The U.S.-Armenia Bilateral Investment Treaty provides U.S. investors with a variety of protections. Although Armenian legislation offers protection for intellectual property rights, enforcement efforts and recourse through the courts remain challenging. In 2023, Armenia expanded its controls and end-user licensing requirements on exports of dual-use items to the U.S., EU, and UK’s joint Common High Priority List.

Following the 2020 hostilities over Nagorno-Karabakh (NK), the incumbent government retained power in June 2021 snap parliamentary elections that met international democracy standards. National elections are not expected again until 2026. The government continues to push forward with economic and anti-corruption reforms that have improved the business climate. Overall, the competitive environment in Armenia is improving, but business associations have reported that broader reforms across judicial, tax, customs, health, education, and law enforcement institutions will be necessary to shore up these gains.

Despite clear improvements that raise Armenia’s attractiveness as an investment destination, investors claim that numerous issues remain and must be addressed to ensure a transparent, fair, and predictable business climate. Private sector representatives have raised concerns about the quality of dialogue between the private sector and government. Investors have also flagged issues regarding government officials’ ability to resolve problems they face in an expeditious manner. An investment dispute in the country’s mining sector has moved toward resolution after being in a standstill for several years. Business groups and international organizations have also raised concerns about the government’s assumption of minority ownership stakes in several major private companies.