ArmInfo. Switzerland’s Symbiotics Investments ranks Armenia in fourth place, along with Peru and Uzbekistan, in terms of the volume of investments it provides. The firm is the largest private investor in the country’s financial sector, providing resources for the development of small and medium-sized businesses. Symbiotics Investments Regional Manager Alexandr Fando provided this information during a conversation with an ArmInfo correspondent during the celebration of the first anniversary of the opening of the regional office in Yerevan.
In particular, Fando stressed that Symbiotics Investments had been operating in the Armenian market since 2008, having financed projects in the amount of about $300 million, half of which has been in drams. At the moment, the company's portfolio in the country is about $120 million, exceeding its exposure to the Georgian market.
At the same time, Fando noted that it is not difficult to start a business in Armenia, as evidenced by its ease of doing business rating (according to the latest World Bank data, Armenia ranks 47th among 190 countries - ed. note). However, he noted that one obstacle for foreign companies is the document flow, which needs to be carried out exclusively in Armenian. Fando believes there are fewer barriers in neighboring Georgia.
Irina Bugdaeva, Senior Investment Analyst at Symbiotics Investments, said that the country's financial sector is characterized by the high professionalism of its regulator (Central Bank - ed. note) and commercial banks, which creates comfortable conditions for investors. She also noted that Armenian banks enjoy good asset quality and strong corporate and prudent governance.
Speaking about the investment environment, Bugdaeva stressed that the Armenian securities market has scope for development. She offered ACBA Bank as an example, highlighting that it held an IPO last year, which provided its customers and the general public with the opportunity to access the bank's capital. In fact, the needed conditions are there, but it is important to also grow the financial literacy of clients. “As a socially responsible investor, we also encourage everything related to financial education and public awareness”, she declared.
At the same time, it is well known that Armenia has a well-developed IT sector. “This makes it attractive to investors”, said Bugdaeva, also mentioning that it has become a social lift for young people. “Since Armenia is not so attractively located in terms of logistics, the country's economy justifiably focuses on the services sector, including IT”, the analyst noted.
Symbiotics is the leading market access platform for impact investing, dedicated to private markets in emerging and frontier economies. The group offers investment, asset management and capacity building services. Since 2005, Symbiotics Investments has originated over 7,100 investments representing more than $7.5 billion for 541 companies in 94 countries. Symbiotics Asset Management has $2.9 billion in assets under management spread across 25 different funds and mandates.