Minister: Number of IT companies in Armenia grows 18.5 times since 2017

The number of information technology companies in Armenia has increased 18.5-fold since 2017, the Minister of High-Tech Industry, Mkhitar Ayrapetyan, announced at a press conference on February 16, summarizing 2025 results.

According to the minister, in 2017 there were 650 technology companies operating in the country. By 2024, that number had risen to 8,396, and in 2025 it reached 12,026 — an 18.5-fold increase compared to 2017.

Employment in active IT companies also grew significantly: from 15,350 employees in 2017 to 41,541 in 2024, and 41,431 in 2025 — a 2.6-fold increase over eight years.

The sector’s turnover rose from 306.4 billion AMD in 2017 to 915.8 billion AMD in 2024, reaching around 1 trillion AMD in 2025 — a 3.2-fold increase from 2017. Meanwhile, total IT exports jumped from 135.44 billion AMD in 2017 to 702.1 billion AMD in 2024, and 711.5 billion AMD in 2025, representing a 5.2-fold increase.

Government Support Programs

Regarding specific programs implemented in 2025, the minister noted that state support totaling 8.87 billion AMD was provided to 319 organizations and individual entrepreneurs in the high-tech sector. These funds were aimed at attracting labor migrants and first-time entrants to the workforce, as well as for professional training and retraining of personnel.

“In addition to direct state support for research and development (R&D) activities, there are also targeted regulatory measures, including tax incentives. In 2025, around 900 employees participating in these programs benefited from a reduced income tax rate of 10% instead of the standard 20% for the entire program duration.

Organizations conducting professional R&D work can also claim an additional 200% deduction on employee salaries when calculating corporate profit tax. Certain transactions and operations are exempt from VAT, and gross income is reduced by the amount spent on R&D when determining the profit tax base,” Ayrapetyan explained.

This combination of growth, export expansion, and government support highlights the rapid maturation and increasing global competitiveness of Armenia’s IT sector.