The Armenian securities market: What attracts investors and what hinders further growth

The question of how to preserve and grow one's money is relevant today both for those who already have savings and for those who are just thinking about building a financial safety net. For capital holders, it is especially important not just to store funds but to manage them wisely, choosing instruments that can provide additional income and protect savings from depreciation.

One such instrument is the securities market. It opens up opportunities for investment, but at the same time involves certain risks and requires an understanding of how it works. In an interview with the Economix program, Rafael Mkrtchyan, Head of Corporate Finance at Freedom Broker Armenia, spoke about the opportunities of the Armenian securities market and the specifics of investing.

The Armenian securities market shows positive dynamics

According to him, in recent years the Armenian securities market has shown notable positive dynamics, and investor interest in the Armenian economy is gradually growing. Mkrtchyan noted that there is a significant inflow of foreign capital into Armenia's economy, although foreign direct investment figures remain quite volatile.

He noted that when it comes to direct investment, the indicator is rather unstable, with certain fluctuations observed — growth in some periods, followed by a decline in others, as was the case in 2024, with growth again in 2025. He said this indicates that there is global interest in the Armenian market and the Armenian economy.

According to his estimates, the trends show that the Armenian economy remains attractive to investors, but for sustainable growth, work must continue on improving the investment environment.

Economic growth and low inflation as attractiveness factors

Mkrtchyan attributes the growing interest in Armenia to a number of factors, including stable economic growth in recent years, the development of various sectors, and relatively moderate inflation.

He emphasized that for an investor this is a very important factor, adding that a stable economic environment and predictable price conditions play a major role in investment decisions.

According to him, it is precisely the combination of these factors that builds investor confidence and creates conditions for further development of the financial market.

Mkrtchyan also cited sanctions against Russia and related changes in financial flows as another factor that has influenced capital movements in the region.

He stated that restrictions on the movement of Russian capital have given a certain impetus to the Armenian economy, with some of those flows coming to Armenia, creating additional opportunities.

According to him, this process has been one of the elements that have contributed to increased activity in the Armenian economy.

Armenia is at the stage of forming the foundation for further development

At the same time, the expert believes that it is still premature to say that the Armenian economy has already reached a high level of development.

Mkrtchyan noted that it would be incorrect to say that the country has already developed fully, suggesting that it is more accurate to say that it is at the base of development, with great potential.

According to him, further growth depends on the country's ability to create a more transparent and understandable business environment for investors.

One of the main conditions for attracting large investments, Mkrtchyan named increasing corporate transparency and strengthening investor confidence.

He concluded that if the country can improve corporate transparency and improve the perception of its economy and businesses in the eyes of investors, it will have the opportunity to attract much more capital, and that attracting capital is one of the main factors in development.