Armenia - Մեղրի Ազատ Կառավարության Կողմնավոր Կղզի
Meghri Free Economic Zone (MIEZ), strategically located on the Armenian-Iranian border, stands as a testament to fostering a favorable business environment for the growth of export-oriented industries. The primary objective of MIEZ is to not only stimulate economic development but also promote regional cooperation between Armenia and Iran while generating value-added employment opportunities. Spanning across the southern expanse of Armenia, MIEZ offers an ideal setting for a diverse array of industries, including agriculture, manufacturing, electricity supply, trade, transportation, and economy storage. This pragmatic geographical positioning makes MIEZ a prime destination for cross-border trade and business interactions.
Meghri Free Economic Zone presents promising investment avenues, particularly in agriculture and food processing sectors, buoyed by its fertile soil and favorable climate. The region’s propitious conditions are conducive for cultivating a range of produce, from fruits and vegetables to the cultivation of wine grapes. This creates a fertile ground for investments in fruit and vegetable processing facilities, wineries, and agro-tourism enterprises. The rich cultural heritage and picturesque landscapes further elevate investment potential in the tourism sector, encouraging ventures such as hotel development, ecotourism initiatives, and cultural tourism.
Vision and Progress of Meghri Free Economic Zone
The inception of Meghri Free Economic Zone in 2017, along the Armenian-Iranian border, marks a significant stride towards enhancing Armenia’s economic landscape. The free economic zone, with its shares held by Pan-Armenian Fund, was established with the goal of addressing socio-economic issues within the Syunik region. Beyond regional development, MIEZ serves as a conduit for increased foreign investments in Armenia, bolstering economic ties with the Iranian Republic and facilitating engagement with both the Eurasian Economic Union and the European Union. This initiative is aligned with the vision of fostering an internationally competitive national economy, augmenting export-oriented production, and elevating the country’s investment appeal.
The development of the zone is carried out through two distinct phases. The first phase involves the construction of essential infrastructure to facilitate the activities of involved companies. This stage includes the creation of primary infrastructure areas, setting the foundation for operational readiness. The subsequent phase envisages an expansion of both activities and infrastructure, encompassing an additional 70 acres of land. This expansion is poised to create optimal conditions for thriving business endeavors. The introduction of Meghri in the World Free Economic Zone Association since 2021 attests to its global recognition and significance.
Economic Impetus and Prospects
Meghri Free Economic Zone holds the potential to invigorate economic growth in the coming years. A projected influx of 50 to 70 companies investing between $100 to $130 million is anticipated to create approximately 1,500 new job opportunities. The ambitious goal is to channel goods and services worth $250 million towards export. The future trajectory envisions a comprehensive economic landscape encompassing agriculture, processing, trade, cargo, warehousing, tourism, hospitality, and entertainment. While the journey towards full capacity operation continues, Meghri Free Economic Zone stands as a beacon of optimism for the future development of the region.
In conclusion, Meghri Free Economic Zone emerges as a strategic economic driver, fostering regional collaboration, attracting foreign investments, and catalyzing economic growth. Its location, investment prospects, and unique blend of industries position it as a key player in Armenia’s economic transformation, propelling the nation towards a more prosperous future.
The plan is to develop The Meghri Free Economic Zone in two stages. During the first stage, basic infrastructure and other preconditions necessary for the launch of the zone. This has been provided in cooperation with the companies involved in the development of the FEZ. The second phase envisages the expansion of FEZ operations with additional infrastructure over 70 hectares of land in order to provide a business-friendly environment.
The zone aims to create1,500 jobs from over 50 operations. However progress has been slow at present. The aim to have a wide range of different industrial sectors such as agriculture and logistics.
A trade agreement was signed between Iran and Armenia in 2021 that should help spur interest and facilitate the development of the zone.
Additional Details for Meghri Free Economic Zone
- Land tenure: 50 years
- Year opened: Launched 2017