Armenia implements 10 investment projects in Eurasian region - EDB

ArmInfo. Mutual foreign direct investment (FDI) of Armenia in the countries of the Eurasian region show positive dynamics. In the first half of 2024, the volume of mutual accumulated FDI increased from 37 to 841 million dollars. The number of investment projects of Armenia in the territory of the Eurasian region is 10.

This is stated in the latest analytical bulletin <Monitoring of mutual investments of the EDB - 2024. Eurasian region>  published by the Eurasian Development Bank. The report contains  detailed information on the scale, dynamics, geographical and  sectoral structure of mutual direct investments of the countries of  the Eurasian region for the period from 2016 to the first half of  2024.

According to the Bank's Monitoring of Mutual Investments (MVB), the  total volume of accumulated mutual direct investments of the  countries of the Eurasian region amounted to USD 46.1 billion by the  end of the first half of 2024. During this period, Armenia received  USD 3,681 million, Georgia USD 2,855 million, Azerbaijan USD 5,815  million, Belarus USD 4,419, and Uzbekistan USD 10,187 million. Russia  received only USD 3,107 million, although it was the main donor of  FDI. Thus, as an investor country, Russia invested USD 38,269 million  in the Eurasian region. The main recipients of Russian FDI were (in  descending order) Kazakhstan, Uzbekistan, Azerbaijan, Belarus,  Armenia, Kyrgyzstan, and Georgia. The lion's share of FDI from  Armenia was also directed to Russia, with a small part going to  Kazakhstan, Belarus, and Ukraine. 

According to the Monitoring, the main recipients of mutual  investments are Kazakhstan, Uzbekistan, Azerbaijan - $10.4 billion  (22.6%); $10.2 billion (22.1%) and $5.8 billion (12.6%),  respectively. In total, these countries account for almost 60% of the  total volume of accumulated mutual FDI at the end of the first half  of 2024. Kazakhstan showed a record 17% increase in attracted mutual  FDI by 2022.

Azerbaijan is the leader in terms of the ratio of mutual exported  investments to GDP. This figure amounted to 6.6% of GDP at the end of  the first half of 2024 and increased significantly compared to 2022  (4% of GDP).

Private companies account for 68% of mutual FDI stock in the Eurasian  region at the end of the first half of 2024.

In terms of industry distribution, the main sectors of mutual  investments are raw materials (35.6%), manufacturing (15.2%) and  transport and logistics (11.6%). Together, they account for more than  60% of the total volume of mutual FDI at the end of the first half of  2024.

The manufacturing sector made the largest contribution to the growth  of mutual investments in the region.  Since 2022, the volume of  mutual FDI in the manufacturing sector has increased by $1.1 billion  to $7 billion at the end of the first half of 2024. The largest  number of active projects (93) are being implemented in this sector.

The agro-industrial sector has demonstrated continuous growth in  mutual FDI since 2016 - the average annual growth rate is 6.7%. Since  2022, the volume of mutual investments in this sector has increased  by 22% to $2.2 billion at the end of the first half of 2024.