Armenia has seen a "quantum leap" in the presence of foreign investors, says Freedom Broker Armenia Director

YEREVAN, December 16. /ARKA/. Armenia has witnessed a significant increase in foreign investor presence compared to 2022, stated Hovak Hovakimyan, the Director of Freedom Broker Armenia.

"For instance, Freedom Broker Armenia has attracted a considerable number of foreign investors," he remarked during an interview with ARKA.

Discussing local enterprises, Hovakimyan pointed out their growth and highlighted the importance of enhancing financial education.

"Foreign investors are recognizing opportunities and tools that facilitate easy access, leading them to invest in the Armenian market. A notable example is the bond issuance by Team Holding, for which Freedom Broker Armenia serves as the underwriter. The total amount of this issuance is $35 million. The process is expected to take 3-4 months, but I anticipate that over half of the issuance will be acquired by foreign investors," he stated, describing the investment of foreign investors in Armenian companies as a positive development.

As per the Director of Freedom Broker Armenia, both local and foreign investors are primarily affected by inflation and interest rate policies. He mentioned that due to the limited size of Armenia's stock market, the evolution of financial products is leaning towards fixed-income instruments.

"Local clients tend to favor this type of instrument, whereas foreign investors are inclined towards the stock market, as it provides returns that are 2-2.5 times greater than those of the stock market," he clarified.

Hovakimyan underscored that private investors in Armenia have become increasingly disciplined, have greater opportunities, and are now more engaged in reading and listening to analytics, including those offered by Freedom Broker Armenia.

"There is an increasing interest in the capital market in Armenia. This is reflected not just in the expansion of our client base but also in the promotional efforts of other financial firms that are marketing brokerage products. Additionally, banks are participating in this sector; they have created robust platforms and offer effective tools," he mentioned, noting that progress is heading towards digitalization.

The full interview can be read here.-0-