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The Armenian government said on January 19, 2017 that it plans to launch a “free economic zone” near Armenia’s border with Iran by the end of this year.
Hovannes Azizian, a deputy minister for economic development and investments, said the tax-free zone will be set up in Agarak town (Syunik), located several kilometers from the Iranian border.
The main purpose of the new free economic zone is to help boost trade and economic relations with Iran and other countries of the region. It will also position Armenia as a bridge between Iran and members of the Eurasian Economic Union (EEU) and Georgia. The deputy minister Azizian confirmed that Iranian firms of the zone will have tariff-free access to the EEU markets.
Location: Agarak (Syunik marz, RA)
Total territory: 10-15 hectares (existing 35 hectares + opporunity of enlargement by 10 hectares)
Initial capital investments: about USD 28 million
capital investments + current expenses (10 years): about USD 32 million
Income (10 years): USD 52 million
Internal rate of return (IRR): 12 years
Permenatent workplaces: 60-70
Azizyan told that this is an important opportunity to foster tourism and encourage people to buy goods there without any customs duties. “The new FEZ town of Agarak will create 2,500 new jobs and increase Armenian exports by 30%”,- he said.
Number of attracted companies during 10 years: 100-120
Annual average exports: USD 80-100 million
Targeted markets: Iran, EAEU, Near East (UAE, Kuwait, Qatar, Oman, Iraq, Lebanon), Turkmenistan, etc.
Gross investments: USD 350-400 million
Workplaces to be created: 2500 +
The Ministry of Economic Development and Investments has placed an invitation on its official website for investors to participate in the establishment of the free economic zone. Mr Azizyan told that Iranian, Russian, Chinese and Armenian companies have already shown interest in this project.
The RA Government is ready to provide advisory support to companies interested in Agarak FEZ project. The deputy minister told that preference will be given to companies which will offer interesting programs and favorable conditions for the residents.
According to the forecasts, by 2021 Agarak FEZ will be half replenished, and by 2024 it will be 100% occupied.
All necessary infrasructure will be provided on the FEZ: industrial zone, office territories and warehiuses. There will be also a business center with conference halls, expo areas, food points, etc. An ideal place for banks, insurance, accounting and advisory companies and public services.
All necessary infrasructure will be provided FEZ: industrial zone, office territories and warehiuses. There will be also a business center with conference halls, expo areas, food points, etc. An ideal place for banks, insuranc
The new FEZ provides flexible and affordable tariffs for office, industrial and warehouse areas. Here are the details:
Priority sectors of the new free economic zone are the following 6:
– agricultural products, food processing;
– industry, machinery;
– chemical industry;
– biotechnology, pharmaceuticals;
– new materials;
The Public-Private Partnership format provides a range of benefits for the investors.
– Territory bordering Iran;
– North-South road corridor;
– EAEU-Iran interim free trade agreement;
– Tax privileges on the FEZ;
– Free economic regime in Armenia;
– Diaspora potential;
– PPP format;
– Preferential trade mechanisms;
– Cooperation with the Iranian “Aras” FEZ;
– Construction of the Southern railway.
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The material is prepared by the Business for Business center, by using the presentation of the Ministry of Economic Development and Investments of Armenia.
For additional information please visit the official website of the MEdI or contact:
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