Investment legislation


FDI Legislation

Law on Public-Private Partnership


Armenia has one of the most open investment regimes among emerging market countries. Due to the Government's commitment to an “open door” policy, almost no restrictions to investment activities apply.

The Constitution of Armenia protects all forms of property and states that everyone shall have the right to own, use and dispose, at its discretion, legally acquired property. Under the provisions of the Law on Foreign Investments, enterprises with foreign investment have the freedom to engage in any economic activity. There are no limitations or prohibitions imposed by the legislation of Armenia, except in cases where national security requirements apply.


Armenia's commitment to ensuring a secure and predictable investment environment is evident through its robust legal framework, participation in international agreements and access to ISDS mechanisms. The Law on Foreign Investments of the Republic of Armenia establishes the core principles for regulating foreign direct investment (FDI) and provides general provisions governing its entry rules, establishment procedures, investment treatment, protection and access to incentives. This legislation grants high standards of protection and guarantees to investors. Foreign investments in Armenia are safeguarded against expropriation, except under exceptional circumstances. The government prohibits nationalization and arbitrary expropriation of foreign investments, ensuring full compensation in exceptional cases of nationalization or expropriation. Investors in Armenia have access to Investor-State Dispute Settlement (ISDS) mechanisms through both national and international arbitration. The Law on Foreign Investments enables investors to file claims at domestic courts for ISDS, and international arbitration is available

when investments are protected by international investment agreements (IIAs). Armenia demonstrates its commitment to investment protection by being a party to various international agreements. The country is a member of the International Centre for Settlement of Investment Disputes (ICSID) Convention and has ratified the United Nations Commission on International Trade Law (UNCITRAL) Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958 New York Convention). Furthermore, Armenia is a party to seven treaties with investment provisions and two regional TIPs - the Treaty on Eurasian Economic Union and the Commonwealth of Independent States Convention on Protection of Investor Rights. The former includes substantive investor protections and ISDS, while the latter incorporates investment protections tied to domestic law and non-binding commitments to arbitration. Armenia is also a party to the Energy Charter Treaty, which provides detailed investor protection and access to ISDS.

FDI Legislation

The Law on Foreign Direct Investments of the Republic of Armenia encompasses several main pillars to ensure effective regulation and implementation of investment projects:



100% ownership of resident legal entities is permitted to foreigners


Equal Treatment

No less favorable than the one for nationals


No Restrictions

Unrestricted access to almost any sector and geographic location within the country


Land Ownership

Companies registered by a foreign citizen in Armenia have the right to own land and have long-term lease contracts

Law on Public-Private Partnership

The Republic of Armenia took a significant step towards promoting public-private collaboration with the adoption of the Law on Public-Private Partnership on June 28, 2019. Since its enforcement on January 1, 2020, this law has provided clear rules and procedures governing the development and implementation of PPP projects, ensuring transparency and accountability. The Law also allows for unsolicited proposals in various sectors. It encourages private entities to propose innovative solutions, facilitating the implementation of sustainable projects that address pressing societal needs.