Tuesday, January 23 2024 13:10

ArmInfo. The United Arab Emirates (UAE) will top the list of Armenia's investment partners for  2023 and will be the 2nd largest trade partner of Armenia, Armenia's Minister of Economy Vahan Kerobyan told Armenia's Public TV. 

Without naming any indicators on investment cooperation, he noted  that the volume of trade turnover between Armenia and the UAE reaches  $2.8 billion, which makes the Emirates the second largest trading  partner of Armenia.

Such dynamics, according to the minister, are due to effective work  with the country, as a result of which progress is observed both in  the context of human relations and in terms of business ties,  interstate interactions, etc. In this vein, he also recalled the  introduction of a visa-free regime between Armenia and the UAE from  February 1

"And we see a great appetite both from the UAE to invest in Armenia  and vice versa. In total, we have established close cooperation in  all areas. All our actions have led to the synchronization of the  economies of our countries," the minister said.

Speaking about investments in the real sector of Armenia as a whole,  he noted that investments today are quite diversified; among  investors, in addition to Russia, he also named India, China, Japan  and the EU.

"Investment cooperation with a number of countries is developing very  quickly, and we are resolutely trying to expand these relations," the  head of the economic department emphasized.

He recalled that according to the results of the first half of the  year, an increase in gross investments of 17.5% was registered.  Without specifying any indicators, Kerobyan only noted that a quarter  of gross investment comes from FDI (foreign direct investment).

According to the RA Statistics Committee, foreign trade turnover  between Armenia and the UAE for 11 months of 2023 reached $1.457  billion, which is 2.7 times higher than a year ago. At the same time,  exports increased by 2.9 times to $1.387 billion, with imports  growing by 27.6% to $69.7 million.

According to statistical data, the net inflow of investment into the  Armenian economy from the UAE in the first half of 2023 reached $268  million, of which 98% was FDI ($262 million). Both indicators  increased impressively on an annual basis - 52-56 times. In  particular, almost all UAE investments was allocated to the mining of  metal ore, and the rest to the production of cigarettes, and the UAE  had not previously invested in both segments. At the same time,  investments in the production of electrical equipment and retail  trade were intensified. At the same time, the UAE has reduced  investments in aviation, and investments in food production have been  completely eliminated.

In 2022, the net flow of total foreign investment from the UAE into  the real sector of the Armenian economy exceeded $5.4 million, of  which $3.8 million came in the form of FDI. Moreover, on an annual  basis, both the total volume and FDI increased significantly. In  particular, investments in the production of other non-metallic  products have been completely reduced, and investments in the  production of electrical equipment, food products, and retail trade  have also been significantly reduced. But at the same time, almost  the entire volume of investments in 2022 was directed to the aviation  sector, where investments had not previously been directed.