Government of Canada

Search

Armenia market overview

Canada and Armenia are active in trade relations since the late 1990s. In recent years, bilateral trade between the two countries has grown significantly, with Canadian exports to Armenia reaching $24 million in 2022 (compared to $11 million in 2021) and Canadian imports from Armenia reaching $12.6 million (compared to $11.3 million in 2021). (Source: Statistics Canada).

In 2022, Canadian exports were mostly comprised of aircraft and other transportation equipment, food products, and machinery and electronic equipment. Imports mainly consisted of apparel and clothing, and aluminum products.

With a strategic geographic location, strong economic growth, and access to both European and Middle Eastern markets, Armenia offers opportunities for Canadian exporters.

Important facts about Armenia

Sectoral opportunities in Armenia

Cleantech

The Fund for Renewable Energy and Energy Efficiency of Armenia is a state entity responsible for creating a favorable environment for the development of renewable energy and energy efficiency projects.

Currently, more than 30 percent of Armenia's energy comes from renewables - largely hydroelectricity. The total installed capacity of all hydropower systems is 1,293 MW. Hydropower could support an even greater share of Armenia's electrical needs. To develop this sub-sector further, equipment and technologies meeting modern needs and environmental requirements are required.

Armenia has notable solar energy potential. The average annual amount of solar energy flow per square meter of horizontal surface is approximately 1,720 kilowatt-hours (kWh). Thus, the government has recently prioritized the construction of solar power plants over other types of renewables.

Newly tendered solar deals are expected to comprise 210 MW of capacity by the end of 2022. The government aims to increase the share of solar power generation to at least 15 percent of total capacity, or 1.8 billion kWh by 2030.

According to the Ministry of Territorial Administration and Infrastructure, which oversees the energy sector, wind energy potential in Armenia is approximately 450 MW of total installed capacity. Mountain passes estimated to have high wind resources include Karakhach, Pushkin, and Jajur in the Bazum Range, Sevan in the Areguni Range, and Sisian in the Zangezur Range. The government is pushing the developers to provide assistance to companies for wind projects with capacity of up to 150 MW.

The Armenian government has taken steps to develop the country's geothermal resources. Recent studies have estimated that Armenia has approximately 150 MW of geothermal potential.

As part of the government's efforts to promote greater energy efficiency, there are opportunities for Canadian exporters to make contributions in this area.

At the beginning of 2020, the government estimated that the market for energy efficiency investments in Armenia totaled CAD$2.6 billion. Several projects are already underway to increase energy efficiency in residential buildings.

Education

The Armenian education sector is currently undergoing a major transformation, with the government trying to address the most significant challenges - outdated curricula, a low share of STEM education, mismatch between the formal qualifications of graduates and skills sought by employers with under developed vocational education.

The newly adopted Armenian education strategy aims at developing an effective and internationally competitive education system and puts significant emphasis on internationalization, meaning Armenian educational institutions will be intensifying their international cooperation.

This new educational strategy, which encourages international cooperation could present a good opportunity for Canadian institutions to enter the market and offer their services - curriculum export, training programs, student exchanges and others. The Ministry of Education is committed to transforming the educational system, putting in additional mechanisms and funds to support its modernization.

In May 2022, the World Bank approved a new CAD$33.7 million loan to the Government of Armenia to support its efforts to modernize its education system. This project is aimed at assisting the Government of Armenia in improving school readiness of children entering primary education, the physical condition and availability of educational resources in general education, and quality and relevance in higher education institutions in Armenia.

In general, in Armenia, there is an eagerness from youth, industry, government officials and universities to collaborate and deepen relations with Canadian institutions.

Information and communication technologies

Armenia has a burgeoning information and communications technology (ICT) sector. Tech's share in Armenia's total GDP has risen from 1.5 percent in 2010 to 4 percent in 2021, after having reached a peak of 7.4 percent in 2018.

Much of Armenia's tech industry is small-scale: only 4 percent of Armenia's IT firms have more than 100 employees, while 13 percent have between 25 and 100 employees, and 83 percent, fewer than 25 employees.

However, Armenia has also produced some companies that operate on a global scale. Picsart, which produces a photo- and video-editing app, was founded in 2011 and has headquarters in both San Francisco and Yerevan; it is currently valued at more than $1 billion.

Yerevan-based Krisp, founded in 2017, makes noise-removal software for online meetings and grew 20-fold in 2020. ServiceTitan, which makes software for tradespeople, is valued at $9.5 billion; it was founded in Los Angeles in 2013 by Armenian immigrants and opened a Yerevan branch in 2018.

In 2019, Armenia's Ministry of High Technologies was established. It is responsible for a wide range of activities in the ICT sector, including digitalization and cyber security issues, the postal service, knowledge-based production (hardware and software, or "phigital" as they call it), and the space industry, where there is an aspiration to manufacture satellites for other countries.

The creation of a special government body assigned to the ICT sector demonstrates the country's interest in the development of this sector and of its digital economy, in particular through international cooperation.

The high-tech industry is one of the fastest growing in Armenia. It holds potential for trade expansion with Canada, particularly in the ICT sector, where niches can be identified. Armenia has a strong global comparative advantage in mathematics and natural sciences, which puts it in strong position for AI research. In order to excel in AI research, the country needs to strengthen the development of its human resources, as well as strengthen research excellence and research commercialization through government-facilitated collaborative research programs with international universities and private sector.

Canada can offer training and other opportunities in the AI area. Other sectors that have potential include semiconductor design, electronic design automation, and data science.

Infrastructure

For Armenia, a landlocked country of about 29,800 square kilometers located in the Caucasus Mountain region, it is crucial to further upgrade and develop its transportation infrastructure.

Since the early years of the country's independence, Armenia has received support from the Asian Development Bank, the European Bank for Reconstruction and Development, the World Bank, the Lincy Foundation, the Millennium Challenge Corporation and others to rehabilitate and reconstruct its roads and railway lines.

Ongoing support of these international development institutions and the attention of the government to this sphere provides for the steady and consistent development of the country's transport infrastructure, as well as for a better connectivity with neighboring countries. In addition, it is supporting trade expansion and the development of the domestic economy.

The North-South Road Corridor Investment Program is a multi-phase program launched in 2019 with the objective of achieving an efficient, safe and sustainable north-south corridor linking Armenia domestically and internationally. This project will comprise a 600km road network connecting Armenia's borders and providing access to the Black Sea through the territory of Armenia and Georgia and then to European countries, crossing the territory of Armenia from the South to the North (Meghri - Yerevan - Ashtarak - Gyumri - Bavra) and connecting Armenia to the Georgian road leading to the Poti and Batumi ports.

This program provides a variety of short-term business opportunities for Canadian enterprises in the infrastructure sector, including in the sub-sectors of transportation, signaling, design and engineering consulting services.

In February 2022, the Armenian government took the first step towards attracting potential contractors for the multimillion-dollar construction of a new highway in Armenia's southeastern Syunik province bordering Iran.

The 60-kilometer highway aims to connect the provincial towns of Sisian and Kajaran. This will significantly shorten travel time between Armenia and Iran and bypass Armenian-Azerbaijani border areas.

According to the Ministry for Territorial Administration and Infrastructure, the mountainous highway will include as many as 27 bridges and five tunnels with a combined length of 12 kilometers.

The Ministry is very much interested in securing large international company involvement A bidding process is yet to be finalized. The EU expressed readiness last year to provide up to 600 million euros in grants, loans and loan guarantees for road construction in Armenia.

Agriculture

Armenia presents opportunities for Canadian small ruminants (sheep and goats), tall blueberry plants, pork, fish (hake, salmon, cod, herring) and seafood (cold water shrimp, lobster, scallops).

There is also interest in Canadian spirits (ice wine, wines), dairy products, pet food, and maple syrup. Cooperation with food importers is developing successfully.

With Armenia being a land-locked country, most of the country's agriculture and agri-food imports go through the port of Poti in Georgia. This makes sea container transportation cost-effective. Another supply corridor runs through the United Arab Emirates.

Armenia is also interested in developing cooperation with Canada in agricultural research and education.

Additional resources about entering the Armenia market

Date Modified: