World Bank to review Armenia's high-tech development programs

YEREVAN, November 19. /ARKA/. Armenia's Deputy Minister of High Technologies, Ruben Simonyan, met yesterday with a World Bank delegation led by Cecile Niang, Head of the Financial Practice at the WB's Competitiveness and Investment Department.

Simonyan presented the ministry’s programs aimed at advancing high technologies and boosting the economy, with the goal of turning Armenia into a regional technology hub. He highlighted legislative initiatives focused on developing an IT sector strategy, state support for high-tech industries, and tax incentives for businesses in the sector.

Efforts are also underway to enhance the professional skills of young people, foster start-ups, and conduct research and development (R&D).

Niang, for her part, noted that all the presented programs would be discussed with the World Bank's management and experts in the near future, after which new opportunities for cooperation would be presented promptly, with a focus on the R&D sector.

In October 2024, the Armenian government approved a comprehensive 7-year program to support the IT sector. The program includes the introduction of new support measures and a revised framework for tax incentives to promote sector growth. Specifically, technology companies are encouraged to hire labor migrants, with a 50% refund on income tax.

State Support for IT in Armenia

Approximately 50,000 people are employed in Armenia's information technology sector. In 2023, the sector's turnover surpassed 640 billion drams (almost $1.6 billion), accounting for over 7% of the country's GDP.

Tax breaks for the IT sector have been extended until the end of 2024, maintaining the income tax rate at 10% (compared to 20% for other sectors of the economy).

In May 2024, the Armenian government decided to provide financial support to IT companies amounting to 7 billion drams in 2024-2025. -0-