April 2, 2024

How does Armenia attract international investment to the tech field?

In light of global challenges, Armenia may be considered an emerging investment market in the region thanks to its consistent progress in recent years and promising growth prospects in the technology industry. With such a small market, it has implemented an "open door" investment policy to encourage long-term investments. Now, let's discuss the topic further and see why and how Armenia attracts investments.

1. Easy to set up a company

Registering a company in Armenia is free, takes approximately 20 minutes, and does not require any minimum capital. Apart from these facts that frees up a lot of time and nerves, according to the World Bank Group's 2020 Doing Business Report, Armenia is ranked 10th globally for ease of establishing a business. Moreover, Armenia is the only country in Eurasia that is part of the Eurasian Economic Union and has a Comprehensive and Enhanced Partnership Agreement (CEPA) with the European Union. So, setting up a company is not complicated, reflecting the country's commitment to providing easy processes and opportunities for investors to drive through the setup process effortlessly.

2. Quality of local talents

Attracting foreign investment to Armenia's burgeoning technology sector is also linked to its local talent level. With an unexpected increase in IT experts over the last five years and a fast-developing talent pool of over 57.000 tech specialists (ACA, 2024), Armenia has a workforce that excites global investors' interest. These experts, skilled in cutting-edge technologies, including artificial intelligence, cybersecurity, and software development, help solidify Armenia's image as a center of innovation and technological superiority. 

3. Cultural diversity and mindset

Another key point is cultural diversity and entrepreneurial mindset, which makes the country a winning destination for international investors. As the number of tech startups has grown in recent years and international companies continue opening offices here, it positively affects people's mindset, contributing to a culture of openness, collaboration, and a global outlook. With that, Armenia's tech industry continues to attract professionals from around the world, and relocated professionals have their input, too. They brought diverse perspectives, experiences, and skills to the local workforce, enriching the talent pool and promoting a culture of inclusivity.

In addition, Armenia's strategic location at the crossroads of Europe and Asia makes it a gateway to emerging markets, allowing investors to access a wide range of possibilities. This geographical advantage and Armenia's cultural variety and entrepreneurial nature produce conditions for expanding the country's technology industry.

Key Contributors to Industry Growth

Several key factors have played a pivotal role in driving the growth of the technology industry in Armenia. Several key factors have played a pivotal role in driving the growth of industries in Armenia. Beginning at the top of the funnel, which is education, is crucial. Some fantastic efforts have put technology on the map for Armenian kids, and more success stories have emerged from here. Armenia must also establish a reputation for generating exceptional engineers and become an innovation hotspot for launching successful businesses. We have the ideal ingredients: math, science education, and a global perspective. 

What is the good news? Well, let's see what we already have:

Free access to education

We take that for granted, but this is not the case in many developed countries. Free access to education guarantees that talents are not restricted by financial limitations, allowing everyone from all walks of life to have equal opportunities that will benefit society as a whole.

TUMO is a free after-school learning program focused on technology and design for youths. Thousands of students take part in the unique, self-paced curriculum. Its instructional framework is built on a patented platform that encourages learning through interactive game-like levels, exposing users to increasingly complex tasks. 

Armath initiatives
Armath's engineering lab is a project for teenagers aged 10 to 18 to introduce science, technology, engineering, and mathematics through dynamic extracurricular activities, exciting contests, and unique camps by creating labs in schools. This plays a massive role in global growth trends by teaching children and stimulating interest in science from a very young age. 

Boot Camps
Boot camps are critical in closing the skills gap in Armenia's technology industry and boosting economic growth. They assist the ongoing growth by developing qualified people ready to contribute to the workforce. These regular boot camp initiatives are a faster way to learn in-demand skills and launch successful careers in the technology industry. They give hands-on education, practical experience, and mentorship to help them quickly obtain coding, software development, cybersecurity, and data analytics expertise.

FAST initiative
The Foundation for Armenian Science and Technology (FAST) is designed as a comprehensive platform to foster technological and scientific breakthroughs in Armenia by reviving the country's strong science, technology, engineering, and mathematics (STEM) traditions, establishing a favorable regime for innovation, promoting science and technology education, and actively developing a venture capital ecosystem. 

AGBU Women in Tech
AGBU Women in Tech is a project the Armenian General Benevolent Union (AGBU) started to assist and empower women in technology. The program aims to address the gender gap in the IT sector by offering tools, mentorship, and networking opportunities to women interested in pursuing careers in technology. One of the primary ways AGBU Women in Tech contributes to the Armenian tech industry is by increasing the representation of women in technology-related roles. By empowering women with the skills, knowledge, and confidence to pursue careers in tech, the initiative helps to expand the talent pool and bring new perspectives and ideas to the industry, just the way we need it, right?

Digitec - IT Vanity Fair
Since 2005, Digitec Expo has been the region's largest annual technology event, with over 100 exhibitors showcasing their goods, services, and businesses to tens of thousands of B2B, government, education, and B2C people. The Union of Advanced Technology Enterprises (UATE) brings together national and international organizations working in Armenia that specialize in software, Internet technologies, e-commerce, IT research and development, semiconductor technology, and other fields. 

Another important point that adds to this is that chess is a social value in Armenia. But how has the tech industry been connected to this childhood board game? Imagine being trained from a young age to overcome challenges, determine how many moves your opponent can make, and where to place their pieces on the board so as not to lose. It's like doing math while playing a game! As the players consider their future movements, they use logical thinking to plan ahead and outsmart their opponents.

So, chess helps us learn and develop math and logical thinking, which also benefits our country's growth and improvement. When we are skilled in mathematics and logical thinking, we can solve issues and generate new ideas. This helps our country achieve greater success in technology, science, and more, making our country stronger and smarter!

To Wrap Up

Armenia's path as a powerful tech hub in the region is highlighted by its exceptional growth and persistent dedication to creating a favorable and promising environment for long-term investments. Armenia continues to draw worldwide attention and prospects thanks to its open-door investment policy and booming sectors supported by a strong educational system. As we look to the future, it is apparent that Armenia's potential is limitless. By identifying and leveraging the strengths of its economy and society, investors and stakeholders alike may play a crucial role in defining Armenia toward sustained progress in the coming years.

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