Net flow of foreign investment into Armenian economy dropped to  negative $221 million by October 2025, but FDI saw significant gains

ArmInfo.  The net flow of total foreign investment into the real sector of Armenia's economy decreased threefold in January-September 2025 compared to the same  period in 2024. It dropped from a positive $246 million (95.2 billion  drams) to a negative $221 million (84.5 billion drams).

At the same time, the net flow of Foreign Direct Investment (FDI)  remained in positive territory, doubling year-on-year from $42  million (16.1 billion drams) to $88.2 million (33.7 billion drams).  According to the RA Statistical Committee, this increase in FDI was  achieved thanks to significant direct investments from Luxembourg and  new inflows starting to arrive from Moldova.

This decline in total investment would have been even more  substantial-especially given the sharp drop in inflows from Russia,  Canada, and Germany, and the zeroing out of investments from  Jersey-if not for the noticeable increase in funding from the USA,  Luxembourg, Switzerland, Kazakhstan, and Singapore, as well as new  investments coming from Moldova, Qatar, and Ireland.

Canada recorded the highest negative net investment flow at $232.8  million (89.1 billion drams). This consisted entirely of FDI and  represented a more than tenfold annual decline (dropping from the  fourth- largest positive level a year earlier). Previously, almost  all Canadian investment was directed toward the mining industry, with  the remainder going to the chemical industry, law, and accounting.  Russia followed with a negative net investment flow of $152 million  (58.1 billion drams). Just a year ago, Russia held the top position  for positive indicators, but it now ranks second for negative flows  (after Canada). Russia's net FDI flow also turned negative, reaching  $77.3 million (29.6 billion drams). On a year-over-year basis, total  investments from Russia decreased fivefold, while FDI decreased  3.8-fold.

Russia significantly reduced investment in metal ore mining and other  mining sectors, clothing manufacturing, construction, real estate  transactions, wholesale and retail trade, electricity and gas supply,  and financial intermediation. Investments in pharmaceutical  production were completely eliminated. At the same time, small  amounts of investment were directed to telecommunications, research  and development, law and accounting, household services, ground  transportation (South Caucasus Railway), computer manufacturing,  electronic and optical equipment, food and beverage production, crop  production, livestock farming, and fisheries.

Germany follows in terms of its highly negative net investment flow,  with $94 million (35.8 billion drams), with only a small portion  represented by FDI. Furthermore, net investment from Germany was   negative in 2024, but has now increased 30-fold. Investments in  energy projects, as well as in the production of basic metals, have  been largely curtailed, while investments in electrical equipment  manufacturing have been completely eliminated, and only small amounts  have been retained in wholesale trade, software development, and  related IT activities.

Sweden and the UAE occupy the fourth and fifth positions in terms of  negative net investment flow, with $27.7 million (10.6 billion drams,  excluding FDI) and $21.7 million (8.3 billion drams), respectively,  with only a small portion is represented by FDI. Moreover, net  investment from Sweden in 2024 was positive, but has now declined by  3.4 times, entering the negative zone. The UAE's negative level has  deepened by 26%. Sweden has primarily reduced its dominant  investments in mining and food production, while modestly resuming  investment in wholesale trade. The UAE has primarily reduced  investments in cigarette production, metal ore mining, electrical  equipment manufacturing, transportation, and financial  intermediation, while resuming investment in other mining sectors,  slightly increasing investments in the wholesale and retail sale of  automobiles and motorcycles, but completely zeroing out on investment  in retail trade and air transport.

The United States leads in positive net investment flows for the  first nine months of 2025, with $222.4 million (85.1 billion drams),  with only 7.2% represented by FDI. Year-on-year, net investment from  the United States jumped more than ninefold, but FDI as a share of  its total investment decreased by 27%. The bulk of this investment  went to the mining industry, while the remainder went toward software  development and related IT activities, as well as housing  construction. Additionally, investment in the production of basic  metals, energy projects, wholesale trade, the hotel business, and  research and development was reduced. Investments in cigarette  production ceased completely. Luxembourg ranked second in terms of  positive net investment flow (entirely FDI) at $80.1 million (30.6  billion drams, with an annual growth rate of 5.4 times, turning  negative). It directed the bulk of its investment into air transport,  with the remainder going into energy projects, beverage production,  warehousing, and support services for transport, while simultaneously  reducing its already modest investments in scientific and technical  professional activities.  Kazakhstan ranked third in terms of  positive net investment flow at $54.5 million (20.8 billion drams,  with an annual growth rate of 2.5 times). While previously this  figure was entirely FDI, its share is now negligible. Kazakhstan  primarily directed its investments into metal ore mining, a sector it  had not previously invested in, while the remainder, as before, went  into law and accounting. Singapore ranks fourth in terms of positive  net investment flow, with $50.3 million (19.2 billion drams, a  5.6-fold annual increase and a decline in net investment), although  no FDI flows from this sector. Singapore's investments, as before,  are entirely directed toward metal ore mining.

Switzerland rounds out the top five in terms of positive net  investment flow, with $42 million (16.04 billion drams, a 57.3%  annual increase), of which FDI accounts for 23% (3.7 billion drams, a  55.4% year-on-year decline). For the first time, the bulk of Swiss  investment went toward metal ore mining, with the remainder going  toward wholesale and retail trade, software development and related  IT activities, the hotel industry, research and development, and some  investments in advertising and market research. At the same time,  investments in housing construction and energy projects have been  reduced. Investments from Moldova were entirely in the air transport  sector, amounting to $10.2 million (3.9 billion drams).

It should be noted that the net flow reported in the statistical  report is the difference between attracted and repaid foreign  investment.

Recall , in 2024, the net flow of total foreign investment into the  real sector of the Armenian economy decreased by 2.6 times, from a  positive $479.3 million to a negative $285.6 million. The net flow of  foreign direct investment (FDI) also fell by a factor of 2.2 over the  year, from a positive $624.1 million to a negative $112.9 million.  This marked deterioration in annual dynamics. Net investment flow  entering the negative, came from Russia and the UAE, which had  previously led with positive levels. In particular, the negative net  flow of total investment from Russia increased fivefold in 2024,  reaching $156.3 million, with FDI also in the red, at $215.1 million  (a 4.8-fold decline). The net flow of total investment from the UAE  declined even more significantly, from a positive $257.6 million to a  negative $23.5 million. The same was true for FDI, which fell from a  positive $248.9 million to a negative $23.4 million. The UAE  significantly reduced investments related to financial  intermediation, where almost all of its investment had previously  been directed, while the Russian Federation significantly reduced its  investments in the mining sector.  Meanwhile, in terms of positive  net flow of total investment and FDI, the TOP-5 countries by the end  of 2024 included Canada - $45.1 million (all FDI), the offshore  island of Jersey - $40.5 million (all FDI), the United States - $36.5  million (90% - FDI), Switzerland - $28.7 million (97% - FDI), and  France - $28.5 million (65% - FDI). Canada invested in the  metallurgical and chemical industries. The United States mainly  invested in the IT sector and the production of basic metals.  Switzerland directed the majority of investments to housing  construction and the IT sector, and France directed investments to  the water management and IT sector. As for the offshore island of  Jersey, investments from this direction ceased in 2018 and resumed,  in fact, six years later, which, according to independent observers,  could be connected with preparations for the restart of the Amulsar  gold mining project, as well as, possibly, with the construction of  several small metalworking industries. However, in 2025, investments  from Jersey ceased again. (The calculated exchange rate of the dram  against the US dollar on 30.09.2025 was AMD 382.52 / $ 1, against AMD  387.29 / $ 1 on 30.09.2024 and AMD 396.56/ $ 1 on 31.12.2024).