TEHRAN: An Iranian company called ‘Rena’ is ready to invest $1 million in the construction of infrastructure for a free economic zone Armenia plans to build near the town of Agarak, not far from the border with Iran, according to its CEO Reza Nafez, who spoke to Armenian reporters on the fringes of an Armenian-Iranian business meeting in Yerevan today. He said his company is ready to secure the deliveries of asphalt, concrete, and glass for the Armenian free economic zone.
He also called on Armenian businessmen not to wait for foreign investors and make their own investments in the free economic zone, since Armenia can do it a very interesting platform for foreign companies. He also said that Armenian and Iranian companies may create joint productive ventures in Armenian free economic zone as raw materials in Iran are quite cheap and they can be processed in Armenia. “By purchasing raw materials in Iran, Armenian companies can set up production and packaging on their territory and then export the finished goods to Georgia and member countries of the Eurasian Economic Union,” Nafez said, adding that many Armenian companies already buy raw materials in Iran.
The free economic zone that Armenia is planning to launch later this year is located near the southern town of Agarak not far from the border with Iran. According to Armenian government officials, it will create 2,500 new jobs and increase Armenian exports by 30%. The main purpose of the free economic zone is to help boost trade and economic relations with Iran and other countries of the region, help the development of the Syunik region, as well as position Armenia as a link between Iran and members of the Eurasian Economic Union (EEU) and Georgia. The initial investment into the free economic zone is estimated at $28 million. The Agarak free economic zone will house about 120 companies, which are supposed to earn $52 million in ten years. Their products will be exported to Iran, EEU member states, the Middle East, Turkmenistan and others. In 2016 the trade turnover between Armenia and Iran amounted to about $280 million, of which $70 million were Armenian exports.
