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Global Insight
October 29, 2010
Government Considers Plans to Create Industrial Economic Zone in
Southern Armenia
BYLINE: Lilit Gevorgyan
Armenian PM Tigran Sarkisian, attending an Armenian-Iranian business
forum in Syunik province, southern Armenia, unveiled his government's
plans to develop an industrial zone in the region. Sarkisian expressed
his hope that the new drive will help to diversify the Armenian
economy and also capitalise on co-operation with neighbouring Iran.
The Armenian government is expecting to improve the railroads and
attract investment with the launch of the industrial zone. Speaking at
the meeting, which was attended by Iranian officials and business
representatives, Sarkisian highlighted that the two countries are well
set to increase their trade volumes especially after the completion of
the railroad set to link Armenia and Iran.
Significance:Sarkisian's plans are likely to materialise, given due
that southern Armenia hosts a number of metal and mining companies
established mostly during the Soviet period, although some of them
date back to the late 19th century. The region also benefits from its
close proximity to Iran which is one of Armenia's largest trade
partners. There have been ongoing talks about simplifying customs
controls and even creating a free-trade zone, an idea more seriously
backed by Iran than Armenia. The latter is keen to develop the region
also due to its strategic importance--wedged between Azerbaijan proper
and Nakhichevan, an Azeri enclave, Syunik region is practically a
lifeline for Armenia which is still under blockade from Azerbaijan and
Turkey over the status of Armenian-populated Nagorno-Karabakh. There
is a high likelihood that the Armenian government's plan will
materialise in the coming years. Despite severe fiscal shortages, the
government has built 26 km of highway linking the region to the
capital Yerevan and recently launched the longest cable car line in a
bid to develop tourism in the southern region, which hosts one of the
oldest universities--Tatev, which dates back to the 14th century. The
project is set to boost the region's tourism business and generally
increase its attractiveness for foreign investors.
From: A. Papazian
October 29, 2010
Government Considers Plans to Create Industrial Economic Zone in
Southern Armenia
BYLINE: Lilit Gevorgyan
Armenian PM Tigran Sarkisian, attending an Armenian-Iranian business
forum in Syunik province, southern Armenia, unveiled his government's
plans to develop an industrial zone in the region. Sarkisian expressed
his hope that the new drive will help to diversify the Armenian
economy and also capitalise on co-operation with neighbouring Iran.
The Armenian government is expecting to improve the railroads and
attract investment with the launch of the industrial zone. Speaking at
the meeting, which was attended by Iranian officials and business
representatives, Sarkisian highlighted that the two countries are well
set to increase their trade volumes especially after the completion of
the railroad set to link Armenia and Iran.
Significance:Sarkisian's plans are likely to materialise, given due
that southern Armenia hosts a number of metal and mining companies
established mostly during the Soviet period, although some of them
date back to the late 19th century. The region also benefits from its
close proximity to Iran which is one of Armenia's largest trade
partners. There have been ongoing talks about simplifying customs
controls and even creating a free-trade zone, an idea more seriously
backed by Iran than Armenia. The latter is keen to develop the region
also due to its strategic importance--wedged between Azerbaijan proper
and Nakhichevan, an Azeri enclave, Syunik region is practically a
lifeline for Armenia which is still under blockade from Azerbaijan and
Turkey over the status of Armenian-populated Nagorno-Karabakh. There
is a high likelihood that the Armenian government's plan will
materialise in the coming years. Despite severe fiscal shortages, the
government has built 26 km of highway linking the region to the
capital Yerevan and recently launched the longest cable car line in a
bid to develop tourism in the southern region, which hosts one of the
oldest universities--Tatev, which dates back to the 14th century. The
project is set to boost the region's tourism business and generally
increase its attractiveness for foreign investors.
From: A. Papazian