A nation of resilience and opportunity, Armenia is charting its own course

On 28th May Armenia celebrated the 107th anniversary of the First Republic — an achievement symbolic of the nation’s resilience. “From nothing, we had an opportunity to establish an independent republic,” recalled Vahagn Khachaturyan, Armenia’s president.

Today, that same determination is driving Armenia’s economic and diplomatic transformation. Forecast to grow 5.6 per cent in 2025, the Armenian economy has posted double-digit expansion in recent years. “We had 5.8 per cent in 2024, 13 per cent in 2023 and about 10 per cent in 2022,” noted Khachaturyan, crediting reforms launched after the 2018 Velvet Revolution. These reforms strengthened the rule of law, fought corruption and created a level playing field for investors. “After 2018… the norms enshrined in the constitution started to work. This is about democracy: giving people the opportunity to hold power, ensuring equal competition in the economy, upholding the rule of law and fighting corruption." Unlike many resource-driven economies, Armenia’s growth is anchored in talent and technology. The high-tech sector contributes nearly nine per cent of GDP, with the country ranked 54th globally in the Startup Ecosystem Index 2025.

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"This sector thrives solely through knowledge and education,” Khachaturyan emphasised. Armenians are among the most highly educated people in the region, with strengths in engineering, math and science. The renowned Tumo Center for Creative Technologies — exported to Paris, Beirut, Moscow and others — demonstrates how Armenia’s youth are shaping the future in animation, robotics and AI. For Gulf investors seeking a skilled, creative workforce, Armenia offers opportunities in technology, education and digital industries.

Regional stability has long been the missing piece. Armenia’s leadership is candid: “Our real role is many times decreased by this. The Crossroads of Peace may become the guarantor of peace.” That vision took a historic step forward in August 2025, when Armenia and Azerbaijan signed a landmark peace agreement in Washington, DC, with US mediation. The deal promises to normalise relations, reopen trade routes and position Armenia as a true regional connector between Europe, the Middle East and Asia. For Gulf investors, this means new opportunities in logistics, cargo, tourism and infrastructure across an expanded market.

Major Emirati ties

This year, the UAE became Armenia’s top foreign direct investor and second-largest trading partner. “I was invited by the UAE President, Sheikh Mohamed bin Zayed Al Nahyan, to participate in the Global Investment Conference,” Khachaturyan recalled. “The discussions were focussed on future for bilateral relations on different levels.”

Concrete projects are already underway. Masdar is set to begin construction of a major solar power plant in Armenia by the end of 2025, while discussions on water management and mining investment are progressing. Bilateral cooperation is broad, spanning education, tourism, security and renewable energy. Citizens of both nations now enjoy visa-free travel and mutual recognition of driving licences, boosting people-to-people and business ties. Khachaturyan also highlights Emirati hospitality. “I thank the UAE authorities for creating favourable conditions for the Armenian community to establish and develop. Each of them has a unique role, whether through businesses, activities, or personal contributions, in the economy and social life of the UAE.”

Beyond investment, Armenia is becoming a favoured destination for Gulf tourists. Armenia offers four distinct seasons, with modern ski resorts, spa towns such as Jermuk with renowned healing waters and expanding wellness and medical tourism services — from dentistry to cardiology — at highly competitive prices. Armenia is also raising its profile in sustainability. Having participated at COP28 in Dubai, it will soon host the UN Convention on Biological Diversity in 2026. “In the use of alternative energy, we are quite ahead,” Khachaturyan explained. “The number of solar stations and small hydro plants has increased. We have a nuclear power plant that is a source of green energy." Ultimately, Armenia sees inspiration in the Emirates’ story. “The example and history of the UAE is a good lesson to learn,” Khachaturyan reflected. “Solidarity, harmony, dreams, plans and implementation."

With a historic peace agreement in place, deepening ties with the UAE and a new generation empowered by education and innovation, Armenia is opening its doors wider than ever to trade, tourism and investment.