Armenian Cabinet approves bill to modernize investment framework

The Cabinet approved a bill drafted by the Economy Ministry that would establish a new Law on Investments, aiming to improve the legal framework.

The law is designed to create a unified and modern framework for investment relations for both domestic and foreign investors.

Deputy Minister of Economy Lilia Sirakanyan presented the bill to the Cabinet on Thursday.

She emphasized that the current Law on Foreign Investments does not provide comprehensive regulation that meets the modern requirements of the investment process.

“One of the key features of the bill is that the regulations it establishes will apply not only to foreign investors and investments but also to domestic investors and investments,” Sirakanyan said. 

She stated that the law enshrines the principle of non-discrimination through both national and most-favored-nation (MFN) regimes.

“Under the national regime, foreign investors will have the same rights, freedoms, and obligations as domestic investors. The most-favored-nation regime means that an investor from a foreign state can expect the same favorable treatment from the Republic of Armenia as is applied to any other foreign investor,” she explained.

Sirakanyan added that exceptions apply only to customs unions, free economic zones, and economic unions established by international agreements.

The draft also provides guarantees for the legal and physical protection of investments, free movement and conversion of capital and property, property rights over land and other assets, guarantees for hiring employees, dispute resolution mechanisms, and access to justice. “Although many of the regulations mentioned in the bill already exist in other legal acts, one of the objectives is to consolidate them into a single bill, ensuring a simpler, more transparent, and predictable investment environment,” the deputy minister said. She also emphasized that investments covered by the law’s guarantees will remain protected for five years, even if the law is amended or repealed. The deputy minister stressed that the adoption of the bill will create an investment environment aligned with international standards, contributing to Armenia’s investment attractiveness and competitiveness.