Armenia and the Netherlands are partner countries that share 31 years of interstate relations and centuries-old history.
Limiting the relations between the Armenian and the Dutch peoples to the date when diplomatic relations were established, would be a major understatement, considering the very fact that back in the 4th century an Armenian arrived in the Netherlands and became Saint Servatius of Maastricht - the first bishop of the Netherlands.
The commercial ties between the people of these countries date back to the middle ages. Since then the constant interaction and an in-depth political dialogue have created a conducive environment for the stable development of the economic relations making the Netherlands Armenia’s key trade partner among the EU member states. The Armenian-Dutch trade and economic ties are evolving rapidly in fields such as agriculture, dairy industry, high-tech, tourism, renewable energy etc.
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PUM expert Krin de Kraker supported Borisovka dairy in Tsghuk village, Syunik Matz, with introduction of new butter technology and recipes.
Armenian Crossroad
Since 2018, Armenia has embarked on comprehensive reforms in multiple areas, including market economy, independent judiciary and investment policy. This, in its turn, has evoked strong interest from other countries towards Armenia. The intensification of economic diplomacy and deepening cooperation in the economic field occupies a unique place in the Armenian reform agenda.
It is also noteworthy that Armenia’s upgraded potential was also acknowledged by the OECD Foreign Direct Investment Regulatory Restrictiveness Index, where Armenia ranks among the top 10 of 70 countries. Armenia also ranks 58th in the 2022 Index of Economic Freedom released by the Heritage Foundation.
Due to its unique geographical location, Armenia has a promising potential of becoming an economic bridge between the east and the west markets of millions of consumers, with exceptional resources, diverse traditions and cultures, which creates excellent opportunities for implementation of new business ideas like introduction of “Armenian crossroad” concept, which will open new opportunities on one hand, and the possibility of economic cooperation with the European Union, on the other.
Armenia- the Netherlands cooperation
Last year marked 30 years of interstate relations between the Netherlands and Armenia, with significant achievements in various economic fields. The opening of the Dutch Embassy in Armenia in 2020 has contributed significantly to the expansion of cooperation in the fields of agriculture, water management, technology, “Horeca” and various projects and research have been carried out.
Throughout the years multiple Dutch entities, and senior advisors’ organization PUM, in particular, played a significant role there, through which several dozen Dutch companies came to Armenia, hundreds of companies used high-quality Dutch consulting, developed technologies, learned best practices and signed multi-million business contracts.
Another example of successful cooperation are the projects of the Dutch Development Bank (FMO). Since the Velvet Revolution in 2018 and reinforcement of equal opportunities for businesses, the FMO expanded its portfolio in Armenia, signing new loan contracts with leading Armenian banks - Ararat Bank, AmeriaBank and ArmEconomBank. The invested money is directed to the sectors within the Dutch Foreign and Trade Policy Priorities and Sustainable Development Goals.
Armenia is also well represented by the Netherlands in International Financial institutions, the International Monetary Fund, the World Bank Group and the European Bank reconstruction and development. This cooperation significantly contributes to the development and reforms agenda of Armenia.
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Prime Minister of Armenia in a meeting with representatives of the Dutch business community. Ch-chaired by the President of the Confederation of Netherlands Industry and Employers.
Perspective
The main perspectives of economic development between Armenia and the Netherlands are seen in the fields of agriculture, water management, IT sector and tourism.
Armenia is a globally influential center of origin of agrobiodiversity. With favorable climate and geographical conditions Armenia’s agriculture is the ideal place where the power of productive agriculture can be experienced. The most promising agricultural sectors remain modern greenhouses, wine production, and organic agriculture.
From the meeting of Armenia's Minister of Economy Vahan Kerobyan with the management of "Shell" company.
Armenia is also steadily turning into a regional hub of advanced technology and innovation due to its competitive labor force, the sector's share in GDP, and its constant growth in the number of companies and total turnover. Needless to say – Armenia has already secured its place on the IT map of the world, and will remain committed to the steady development of this most promising field of economy.
As for tourism, this sector is one of the main drivers of the Armenian economy and is recognized as a priority sector by the government. The continuous rise of potential goes hand in hand with the ongoing support from the Government and rising interest towards Armenia.
Armenia is guided by the principles of an “open door” policy, liberalization of relations pertaining to investment activities, the establishment of national and more favorable regimes for foreign investors, proper protection of investments, and other principles adopted in advanced international practice. It gives broad opportunities to investors such as 100% property ownership, the right of companies registered in Armenia to buy land, unlimited currency exchange on market rates, duty-free import of personal goods of foreign employees and much more.
The government of Armenia has adopted and remains fully committed to shaping an investment atmosphere, where every business owner feels protected and secure to establish, evolve and succeed in a country of opportunities and democratic environment of fair business relations.
The efforts put by the Government of Armenia can only prove more effective if supported by the huge expertise and knowledge of our international partners. This cooperation always injects new ideas and brings the best opportunities to light.
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- Armenia's exports 2021 to the Netherlands with a share of 6.44% (191 million US$):
- OECD FDI Regulatory Restrictiveness Index:
- 2022 Index of Economic Freedom:
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Armenia’s domestic tech sector has matured over the decade, growing from 1.2% of the country’s gross domestic product (GDP) in 2010 to 5.1% in 2020.
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