1. Armenian Development Agency INVESTMENT CLIMATE & OPPORTUNITIES 2014

2. Political Stability All Political Parties act together toward Economic Development Public-Private Active Cooperation Democratic approach to all Challenges in the Country Government Priority of Private Sector Development

3. Macroeconomic Stability GDP by years (percent of growth) 2011 2012 7.2% 4.7% 2.2% 2010

4. Macroeconomic Stability INFLATION RATE by years (percent) 2011 2012 2.6% 7.7% 8.2% 2010

5. Macroeconomic Stability

6. Precious and Semi-Precious Stones Precious and Semi-Precious Stones Foodstuffs Foodstuffs Non-Precious Metal Non-Precious Metal Mining Mining Precious and Semi-Precious Stones Precious and Semi-Precious Stones Foodstuffs Foodstuffs Non-Precious Metal Non-Precious Metal Mining Mining Exports Structure 1428.1 mln USD Foreign Trade Turnover 2012 Imports Structure 4266.8 mln USD Precious and Semi-Precious Stones Precious and Semi-Precious Stones Mining Mining Foodstuffs Foodstuffs Vehicles Machinery and Equipment Precious and Semi-Precious Stones Precious and Semi-Precious Stones Mining Mining Foodstuffs Foodstuffs Vehicles Machinery and Equipment Exports and Imports Structure of Armenia

7. Russia (20%) Russia (20%) EU (39.2%) EU (39.2%) - Germany - Germany - Belgium - Belgium - Holland - Holland Bulgaria (9%) Bulgaria (9%) USA (6%) USA (6%) Iran (8%) Iran (8%) Georgia (6%) Georgia (6%) Canada (6%) Canada (6%) Switzerland (5%) Switzerland (5%) Russia (20%) Russia (20%) EU (39.2%) EU (39.2%) - Germany - Germany - Belgium - Belgium - Holland - Holland Bulgaria (9%) Bulgaria (9%) USA (6%) USA (6%) Iran (8%) Iran (8%) Georgia (6%) Georgia (6%) Canada (6%) Canada (6%) Switzerland (5%) Switzerland (5%) Foreign Trade Partners 2012 Main Export Partners Main Import Partners Russia (25%) Russia (25%) EU (26.4%) EU (26.4%) - Germany - Germany - Bulgaria - Bulgaria - Italy - Italy - France - France China (10%) China (10%) Iran (5%) Iran (5%) Turkey (5%) Turkey (5%) Russia (25%) Russia (25%) EU (26.4%) EU (26.4%) - Germany - Germany - Bulgaria - Bulgaria - Italy - Italy - France - France China (10%) China (10%) Iran (5%) Iran (5%) Turkey (5%) Turkey (5%)

8. Communication Communication Power and Gas Supply Power and Gas Supply Mining Industry Mining Industry Agro-sector Agro-sector Beverages Beverages Construction Construction Communication Communication Power and Gas Supply Power and Gas Supply Mining Industry Mining Industry Agro-sector Agro-sector Beverages Beverages Construction Construction FDIs Structure of Armenia FDIs Receiving Major Sectors FDIs Receiving Major Sectors Major Investing Countries France France Russia Russia Argentina Argentina Switzerland Switzerland Germany Germany France France Russia Russia Argentina Argentina Switzerland Switzerland Germany Germany

9. 38 th Rank INDEX OF ECONOMIC FREEDOM 2013 Rating Ba2 Rating BB- Country Ratings According to International Assessments

10. 32 nd Rank DOING BUSINESS 2013 Country Ratings According to International Assessments In 2012 due to efforts of Armenian government almost in one year our country ranking in ease of doing business was changed from 50 th to 32 nd position for 2013. Armenia is ahead of Belgium, France, Spain, Cyprus, Hungary and Poland. In 2012 due to efforts of Armenian government almost in one year our country ranking in ease of doing business was changed from 50 th to 32 nd position for 2013. Armenia is ahead of Belgium, France, Spain, Cyprus, Hungary and Poland.

11. MFN regime with 150 countries (WTO full membership) FTA regime with CIS countries (tariff free access to 250 million consumers market) GSP regime with USA, Canada, Japan, Norway and Switzerland GSP+ with the EU MFN regime with 150 countries (WTO full membership) FTA regime with CIS countries (tariff free access to 250 million consumers market) GSP regime with USA, Canada, Japan, Norway and Switzerland GSP+ with the EU

12. Rates VAT – 20 % PROFIT TAX – 20% No export duty import tariffs 0% Or 10% Simplified taxation for Small and Medium Entreprises INCOME TAX – max.26%

13. High-tech oriented FEZ – on the base of the plant Mars and YCRDI FEZ ORIENTATION Electronics & Precision Engineering Alternative Energy Pharmaceutical industry & Biotechnology IT & Telecommunication Industrial Design The operators of free zones will be granted exemptions from: Profit tax Corporate income tax Value added tax Property tax Customs duty High-tech oriented FEZ – on the base of the plant Mars and YCRDI FEZ ORIENTATION Electronics & Precision Engineering Alternative Energy Pharmaceutical industry & Biotechnology IT & Telecommunication Industrial Design The operators of free zones will be granted exemptions from: Profit tax Corporate income tax Value added tax Property tax Customs duty 0%

14. FEZ for Jewelry Sector Development FEZ ORIENTATION Jewelry and watches production Diamond processing and cutting Other jewelry goods and accessories production The operators of free zones will be granted exemptions from: Profit tax Corporate income tax Value added tax Property tax Customs duty FEZ for Jewelry Sector Development FEZ ORIENTATION Jewelry and watches production Diamond processing and cutting Other jewelry goods and accessories production The operators of free zones will be granted exemptions from: Profit tax Corporate income tax Value added tax Property tax Customs duty 0%

15. Why Invest In Armenia NO No Restriction on Foreign Ownership in Companies NO No Restriction on Capital Movement NO No Restriction on Foreign Exchange Operations No No Restriction on Repatriation of Profit No No Restriction on Foreign Employment

16. Why Invest In Armenia Well-educated, Cost-efficient Skilled Labor Workforce Sustainable Banking System Possible Customs Union and Free Access to CIS 250 mln Consumers market WTO Full Member Since 2003 Investment Protection Treaties with 40 Countries & Double Taxation Treaties with 43 Countries Simplified Export and Import Regulations Free Economic Zones

17. UNIQUE CULTURE US STABLE ECONOMY C COST- BENEFICIAL WORKFORCE C CREATIVE APPROACH TO BUSINESS S E EQUAL OPPORTUNITY FOR EVERYONE S SIMPLIFIED TAXATION SAFE TO LIVE AND DO BUSINESS Why Invest In Armenia

18. Where Invest in Armenia Jewelry and Diamond Processing IT and Software Development Pharmacy Production Wine and Brandy Production Tourism and Hotel Construction Renewable Energy

19. IT and Software Development 400 Software graduates per annum 2,000 IT related students 65% of students speak English 6,000 IT specialists 15-20% sector annual growth rate 360 companies, including 107 foreign

20. Renewable Energy Support from local authorities Highly trained and skilled workforce Resource capacity availability International cooperation in initiatives targeting the field of energy 15 years of obligatory purchasing of RE-based electricity by the state Feed-in tariffs

21. Pharmacy Production Decades - long traditions and rich experience in fine chemical industry Decades - long traditions and rich experience in fine chemical industry Highly educated workforce State-of-the-art testing and up-to- date laboratory facilities Open and collaborative clusters Strong willingness and readiness of companies to adopt international standards and to cooperate internationally High market growth in CIS (Russia's dependence on imports of pharmaceutical products is 70%) High market growth in CIS (Russia's dependence on imports of pharmaceutical products is 70%)

22. - Old heritage in Jewelry Industry - Solid capacity and tradition of processing and growing synthetics diamond - Old heritage in Jewelry Industry - Solid capacity and tradition of processing and growing synthetics diamond - Huge pool of qualified and experienced cost efficient jewelers and diamond processors - Huge network of Diaspora in the sector - Huge pool of qualified and experienced cost efficient jewelers and diamond processors - Huge network of Diaspora in the sector - Government strong willingness to assist the sector development - No VAT on imports and sale of gold and precious stones - No import or export tariff on jewelry - Government strong willingness to assist the sector development - No VAT on imports and sale of gold and precious stones - No import or export tariff on jewelry Jewelry and Diamond Processing

23. AGRICULTURE

24. Tourism & Hotel Construction Safe destination Growing demand in hotel construction More then 5000 historical monuments E-visa scheme or getting visa at the border Annual average growth of the number of incoming tourists is 15-20%

25. SUCCESS STORIES

26. Providing Quality Information - preparation of a tailored information packages corresponding to the needs of foreign investors Organizing Site Visits - Planning the Site Visit - planning and preparation of visit of foreign investors, arranging necessary appointments with private and public organizations, - Managing the Site Visit, starting from meeting at the airport, translator provision, assisting in site selection, etc. Brokering Business Partnerships – finding the appropriate partners in Armenia Follow Up Support – managing post-visit support, preparation of additional information and documentation. Investment Project Implementation – assisting with company registration and staff recruitment (job announcements & holding interviews) Liaising with Government institutions Providing Quality Information - preparation of a tailored information packages corresponding to the needs of foreign investors Organizing Site Visits - Planning the Site Visit - planning and preparation of visit of foreign investors, arranging necessary appointments with private and public organizations, - Managing the Site Visit, starting from meeting at the airport, translator provision, assisting in site selection, etc. Brokering Business Partnerships – finding the appropriate partners in Armenia Follow Up Support – managing post-visit support, preparation of additional information and documentation. Investment Project Implementation – assisting with company registration and staff recruitment (job announcements & holding interviews) Liaising with Government institutions (ADA) was established by the Government of Armenia to facilitate foreign direct investment and promote exports. The Prime Minister of Armenia is the chairman of the board. The ADA acts as a "one-stop shop" agency for investors (ADA) was established by the Government of Armenia to facilitate foreign direct investment and promote exports. The Prime Minister of Armenia is the chairman of the board. The ADA acts as a "one-stop shop" agency for investors ARMENIAN DEVELOPMENT AGENCY

27. WELCOME TO ARMENIA Armenian Development Agency +374 10 57 01 70 info@ada.am www.ada.am