Tuesday, January 14 2025 16:59
Karina Melikyan

Foreign investments flow from offshore Jersey to Armenia resumed

Foreign investments flow from offshore Jersey to Armenia resumed

ArmInfo. The net flow of total foreign investments in the real sector of the Armenian economy decreased in January-September 2024 to a negative $119.5 million (46.3 billion AMD) from a positive $353.7 million (139.2 billion  AMD), a 2.3 times year-on-year. This is evidenced by data from the RA  Statistics Committee, which defines net flow as the difference  between attracted and repaid foreign investments. Despite this  overall decrease, the net flow of foreign direct investment (FDI)  remained positive, although it did decrease by 9 times year-on-year -  from $436 million (171.5 billion AMD) to $48.5 million (18.8 billion  AMD).

In terms of country investment structure, Russia leads in  net flow  of investments  flow of total investments and FDI with $52.4 million  or 20.3 billion AMD. This marks a fourfold increase from the previous  year, transitioning from negative to positive levels. Of this amount,   $45.8 million or 17.7 billion AMD are attributed to FDI, showing a  22% decrease annually. The majority of these allocations are  allocated towards the development of metal ore deposits.  In 2nd  place, the offshore island of Jersey experienced a positive net flow  of total investments totaling $41.4 million (or 16.045 billion AMD)  in FDI. According to statistics, investments in this area had ceased  in 2018 but resumed six years later.  Independent observers suggest  that this may be related to preparations for the restart of the  Amulsar gold mining project, as well as  the potential construction  of several small metal processing plants.

In 3rd place is the United States with a positive net flow of total  investments of $ 29.9 million (or 11.6 billion AMD), showing an  annual growth of 4.2 times. Of these, 72% or $ 21.5 million (8.33  billion drams) are FDI, with an annual growth of 26.7%. Most American  investments continue to be directed to the IT sector and the  production of basic metals, with the remainder going into cigarette  production, housing construction, wholesale trade, and repair and  installation of machinery and equipment. However, American  investments in energy projects, the hotel business, and research and  development activities have decreased significantly. Switzerland is  in 4th place in terms of positive net flow of total investments, with  $26.4 million (10.2 billion AMD), showing an annual growth of 2.3  times. Over 81% or $21.5 million (8.3 billion AMD) of these  investments are FDI, which has doubled in a year. Most of the  investments from Switzerland are directed towards housing  construction. 

Slightly less money went to the IT sector, which had not previously  interested Swiss investors. The rest was invested in retail trade,  the hotel business, and energy projects. Additionally, Switzerland  has significantly reduced investments in wholesale trade and  scientific research, and completely eliminated investments in  cigarette production. Canada ranks 5th in terms of positive net flow  of total investments, with $24.5 million (9.5 billion AMD). This is  entirely FDI, which has decreased by almost half compared to the  previous year. Most of the investment from Canada is directed to the  metallurgical industry, with the remainder going to the chemical  industry.

Recall that a year ago, according to the results from January to  September 2023, the TOP-5 countries in terms of net foreign  investment flow were: UAE - $267.5 million, Luxembourg - $66.2  million, Canada - $43.5 million, France - $11.5 million and  Switzerland - $11.1 million. During that period, investments from  almost all of the top countries had grown significantly.  Specifically, investments from the UAE - 53 times, from Canada - 40  times, from Switzerland - 5 times, from Luxembourg - 3 times, and  from France had actually decreased by 26%.  As for the net flow of  total investment from Russia, in 2023 the volume dropped from a  positive level to a negative one. However, Russian FDI, despite a  significant decrease, still remained at a positive level.  Overall,  the Russian Federation's position in terms of investment weakened in  2023: the net flow of total investment fell from a positive 158.6  billion in 2022 to a negative 68.6 billion AMD ($169.5 million),  including FDI, which dropped  from a positive 109 billion to a  negative 25.1 billion AMD ($62.1 million).  The decline in  investments from Russia can be attributed to decrease in the activity  from relocators in 2022, who were moving their capital and business  to Armenia. As a result, the TOP-5 in terms of investment in 2023  were led by the UAE, which increased its volume by 50 times - to  $257.6 million, followed by Luxembourg, Canada, France and  Switzerland, which also significantly increased the volume of  investments. (The  exchange rate of the dram against the US dollar on  30.09.2024 was AMD 387.29 /$1, against AMD 393.40 /$1 on 30.09.2023  and AMD 404.79/$1 on 31.12.2023).

POST A COMMENT
Input digits     


News
CEO: Siemens EDA plans to expand its programs in ArmeniaCEO: Siemens EDA plans to expand its programs in Armenia
Armenia, IMF discuss bilateral cooperation
Doing Digital Forum  held in Yerevan Doing Digital Forum held in Yerevan
Armenia`s March annual inflation driven by higher prices for food  products and servicesArmenia`s March annual inflation driven by higher prices for food  products and services
Armenia to take out EUR 45.3mln loan to improve healthcare quality Armenia to take out EUR 45.3mln loan to improve healthcare quality 
Armenia`s minister of territorial administration, KfW rep discuss  Kaps reservoir constructionArmenia`s minister of territorial administration, KfW rep discuss  Kaps reservoir construction
Armenia`s embassy sums up minister-led Armenian delegation`s visit  to Estonia Armenia`s embassy sums up minister-led Armenian delegation`s visit  to Estonia 
Concurrent membership in EAEU and EU impossible - RF Deputy FM Concurrent membership in EAEU and EU impossible - RF Deputy FM 
Martin Galstyan: In the age of knowledge-based economy, the mission of banks is not only to finance, but also to help businesses enhance their competitivenessMartin Galstyan: In the age of knowledge-based economy, the mission of banks is not only to finance, but also to help businesses enhance their competitiveness
Armenia, Vietnam developing business tiesArmenia, Vietnam developing business ties
Armenia, Vietnam discuss trade and economic relationsArmenia, Vietnam discuss trade and economic relations
Azerbaijan`s increased activity in the issue of constructing a  nuclear power plant poses certain challenges for ArmeniaAzerbaijan`s increased activity in the issue of constructing a  nuclear power plant poses certain challenges for Armenia
Armenia could bridge Vietnam with EAEU - Tran Thanh ManArmenia could bridge Vietnam with EAEU - Tran Thanh Man
Armenia, IMF discuss tax reforms Armenia, IMF discuss tax reforms
"Face to Face" with "The Power of One Dram"
Armenia nominated in 3 categories at the annual Wine Travel AwardsArmenia nominated in 3 categories at the annual Wine Travel Awards
Armenia`s national debt exceeds $13bln Armenia`s national debt exceeds $13bln 
Converse Bank  an underwriter of  Vardanants Center`s corporate bonds  Converse Bank an underwriter of Vardanants Center`s corporate bonds
Armenia`s minister of finance, head of IMF Armenia office discuss  risks in country`s financial sector Armenia`s minister of finance, head of IMF Armenia office discuss  risks in country`s financial sector 
Active work on Kajaran-Agarak section of North-South transport  corridor - Road Department Active work on Kajaran-Agarak section of North-South transport  corridor - Road Department 
Armenia`s expenditures AMD 1bln more in Jan-Feb 2025 as compared with  same period last year Armenia`s expenditures AMD 1bln more in Jan-Feb 2025 as compared with  same period last year 
Armenia`s minister of finance, ADB, FAR reps discuss fiscal policy,  national debt management Armenia`s minister of finance, ADB, FAR reps discuss fiscal policy,  national debt management 
Idram is now available in Yerevan CityIdram is now available in Yerevan City
Smart identification systems  installed at Zvartnots AirportSmart identification systems  installed at Zvartnots Airport
Armenia, Germany starting financial collaborationArmenia, Germany starting financial collaboration
8814 Armenian citizens received <social loans> worth 816 million  drams - Pashinyan8814 Armenian citizens received worth 816 million  drams - Pashinyan
Dmitry Volvach:  Agricultural product trade between Russia and  Armenia grew by 16.2% in 2024Dmitry Volvach:  Agricultural product trade between Russia and  Armenia grew by 16.2% in 2024
Armenia`s gross international reserves $3.372bln Armenia`s gross international reserves $3.372bln 
Armenia`s Tourism Committee, Air Arabia agree on close cooperation Armenia`s Tourism Committee, Air Arabia agree on close cooperation 
`We are on the best way`- ZCMC`We are on the best way`- ZCMC
Yerevan hosting Yerevan hosting "Caucasus: Construction and Repair EXPO 2025"  exhibition
USD transactions up, RUB ones down in Armenia`s interbank foreign  exchange market Mar 24 to 28, 2025USD transactions up, RUB ones down in Armenia`s interbank foreign  exchange market Mar 24 to 28, 2025
GIZ representatives discuss a five-year tourism development strategy in ArmeniaGIZ representatives discuss a five-year tourism development strategy in Armenia
Armenia, UAE  exploring potential for cooperation in medical and ski  tourism industriesArmenia, UAE  exploring potential for cooperation in medical and ski  tourism industries
Unlocking opportunities for Armenian agribusiness in  EU and Swedish  food markets: launch of initiative announcedUnlocking opportunities for Armenian agribusiness in  EU and Swedish  food markets: launch of initiative announced
Armenia`s government to act as reinsurer of agricultural risks Armenia`s government to act as reinsurer of agricultural risks 
Order of cadastral evaluation of municipal lands discussed in Armenia Order of cadastral evaluation of municipal lands discussed in Armenia 
Starlink officially in Armenia Starlink officially in Armenia 
Luys Foundation: Armenia`s economic growth rate slowing down rapidlyLuys Foundation: Armenia`s economic growth rate slowing down rapidly
Moscow: Armenia`s membership in  EU and EAEU are mutually  unacceptableMoscow: Armenia`s membership in  EU and EAEU are mutually  unacceptable
Armenia cannot `occupy two chairs` - Alexei OverchukArmenia cannot `occupy two chairs` - Alexei Overchuk
Jazeera Airways launches Al Kuwait-Yerevan-Al Kuwait flightJazeera Airways launches Al Kuwait-Yerevan-Al Kuwait flight
Armenia`s government allocates AMD 2.1bln as co-funding of 23  subvention programmes Armenia`s government allocates AMD 2.1bln as co-funding of 23  subvention programmes 
Due to  foot-and-mouth disease threat,  Armenia  banned  meat imports from GermanyDue to  foot-and-mouth disease threat,  Armenia  banned  meat imports from Germany
Economist: Armenian Eurobonds covering current expenses cannot be  called <successful>Economist: Armenian Eurobonds covering current expenses cannot be  called
Armenia, Hong Kong to cooperate on matters concerning the prevention  of double taxationArmenia, Hong Kong to cooperate on matters concerning the prevention  of double taxation
Armenia`s authorities against their own targets - opposition MPArmenia`s authorities against their own targets - opposition MP
Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation Armenia`s ministry of high-tech industry, Quantori company to deepen  cooperation 
S&P Global Ratings: Private sector debt burden in Armenia will  continue to growS&P Global Ratings: Private sector debt burden in Armenia will continue to grow
Mirzoyan: Armenia to increase bilateral trade turnover with Iran to  $3 billionMirzoyan: Armenia to increase bilateral trade turnover with Iran to $3 billion
Digital attache:  Armenian companies increasingly adopting  Russian  digital solutionsDigital attache:  Armenian companies increasingly adopting  Russian  digital solutions
Third Russian-Armenian construction forum to take place in YerevanThird Russian-Armenian construction forum to take place in Yerevan
In Armenia, industrial sector declining while industrial price index  risingIn Armenia, industrial sector declining while industrial price index  rising
Economic growth in Armenia slowed due to a decline in the industrial  sector and foreign tradeEconomic growth in Armenia slowed due to a decline in the industrial  sector and foreign trade
Armenian NA discussing amendments to Law on State Pensions Armenian NA discussing amendments to Law on State Pensions 
Armenia, China establishing cooperation in tourism industry Armenia, China establishing cooperation in tourism industry 
Security of property be in effect for Karabakh businessmen working in  Armenia - CBA Security of property be in effect for Karabakh businessmen working in  Armenia - CBA 
AraratBank: The Only Victory is the Smile of a Recovered ChildAraratBank: The Only Victory is the Smile of a Recovered Child
SRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue CommitteeSRC: Revision of rules for appealing fines does not apply to administrative acts issued by  RA State Revenue Committee
Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025Armenia`s State Revenue Committee  sees great tax potential in  construction sector in 2025
Read more
Exchange rates
03.04.2025
RUB4.670.02
USD391.320.16
EUR432.5310.35
GBP514.278.30
CAD277.003.98
JPY26.680.50
CNY53.67-0.13
CHF453.3910.95