Investor Presentaiton
Investment guide Armenia 5
ICT and high-tech sectors are one of
the growth drivers of the Armenian
economy. In last 5 years with double-
digit growth, the output of this sector
increased 4.3 times, reaching to
USD 450 mln and the number of
companies in IT sub-sector increased
about 2.4 times reaching to 429 at
the end of 2015. From 2010-2015 IT
industry is has grown at the CAGR
of 33.98%, becoming the fastest-
growing sector of the Armenian
economy.
These developments in the sector
showed transition from being an
outsourcing industry to an R&D
generating industry where about
50% of revenues of half of the
companies is generated from own
R&D. The industry demonstrated
a sharp increase in the number of
newly formed companies, both local
start ups and branches of most
prominent multinational
corporations such as Microsoft,
IBM, Oracle, Cisco, Synopsys,
National Instruments, D-Link,
VMware, Mentor Graphics, etc.
Due to its skilled and comparatively
low cost labor force and world
class R&D capabilities, Armenia
continues to be the regional
leader in IT and high-tech industry.
With the average annual productivity
of USD 48,000 per technical
employee, the sector is considered
one of the most productive sectors.
During last years the number of
employees in the sector significantly
increased, particularly, the number
of technical staff has almost been
doubled.
Armenian ICT sector goes in line
with the development trends of
global economy and has become a
regional innovation hub with many
organizations including Microsoft
Innovation Center, Armenian National
Engineering Labs, IBM Innovative
Solutions, and Technologies
Center, Armenian-Indian Center for
Excellence in ICT, as well as Gyumri
and Vanadzor technology centres.
Besides, in 2000, the Government
of Armenia has declared High
tech as a priority sector and as
the primary constituent of the
country's economic progress, and
is currently supporting the sector
with various incentives, including tax
privileges, support to infrastructure
development and innovation.
Recent developments in the
Armenian ICT sector, including major
acquisitions and investment projects
have positioned Armenia as a leading
global technology hub with focus on
product development and creation of
start-ups that are competitive in both
international and local markets.
We hope this Investment Guide
will provide you with better
understanding about business
opportunities and investment
environment in Armenia and will
allow to create solid grounds for
the future mutually beneficial
investments.
Sincerely yours,
Bagrat Yengibaryan
Director
Enterprise Incubator Foundation
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