ArmInfo. Amount of investments into Armenian economy remains on very low level, Armenian Minister of Economic Development and Investments Suren Karayan stated on December 28 summing up the results of the year. According to the Minister as of 9 months of 2016 the net inflow of FDI into real sector of Armenia's economy totaled $92 mln or 1.3% of the GDP. "This level of FDI is insufficient for ensuring sustainable development of the country's economy. In the midterm perspective we should increase the amounts 5-fold", the Minister stated.
At the same time the Minister forecasts growth of FDI to $150-200mln in 2017. In this context he considers that taking into account small scale of domestic market Armenia should ensure for all the investors entry to large markets. Armenia should also improve business and investment climate facilitating procedures and achieving greater competitiveness in the region. "50 legal acts have already been adopted to that end and establishment of the Foreign Investments Protection Agency will be the next step", he stated.
Suren Karayan informed that as a result of Armenian Prime Minister's visits to the country's regions a number of business ideas have been gathered, which can become basis for implementation of investment programs of local importance. "160 programs have been developed, 110 of which were developed in the regions with total amount of $240 mln", he noted. Prospects of implementation of a number of programs have already been discussed in the Ministry and developed into a format presentable to potential investors. 32 of these programs were presented during the Minister's visit to UAE.
As a result of the work Karayan stated that in Q1 2017 7 projects will be implemented via investments amounting to 3 bln drams on establishing and expanding existing companies, as a result 824 jobs will be opened.
Karayan informed that an investment fund will be established in Q1 2017 aimed at assisting investment programs. Another investment fund will be established jointly with UAE, which will support implementation of a number of business ideas.
The Minister recalled that within the year two investment forums were organized in New York and in Iran. During the investment forum held in New York on October 10 an agreement on cooperation was reached which was reinforced during the visit of the founder and head of "Ophardt Hygiene Technologies" company to Yerevan. "Already in Q1 2017 they will launch production of medicine products in Armenia, particularly antiseptic agents and dispenser devices", the Minister stated. The German side has already signed relevant agreements with the medical centers of Armenia and purchased a land for construction of the plant.
In 2017 Armenia will hold two investment forums: one in the United Arab Emirates in March and the other in France in the end of February, the Minister noted.
In Jan-Sept 2016, the net inflow of foreign investments in the real economy of Armenia dropped by 72% versus Jan-Sept 2015, and totaled 27 bln AMD ($57 mln), while the direct foreign investments (DFI) fell by 45% to 44.4 bln AMD ($94 mln), according to the National Statistical Service of Armenia. In terms of FDIs, Cyprus, the UK and Luxemburg hold the top three positions, while the rest of the partner countries reduced the FDIs (most of them - to the negative level due to the prevalence of outflow).