B. MINING AND QUARRYING
The subsurface of Armenia is rich in certain mineral resources. More than 480 deposits of a range of mineral resources have been discovered here. Mining is a key contributor to the Armenian economy and is one of the fastest growing export sectors in recent years, with ores and metals accounting for over half of the country's
exports. Armenia has rich deposits of iron, copper, molybdenum, lead, zinc, gold, silver, aluminum, and nepheline syenite. Currently there are seven copper-molybdenum mines, three copper mines, thirteen gold and gold-polymetallic mines, two polymetallic mines and two iron-ore mines operating in Armenia. Environmental safety is among the key challenges for the sector. In view of this, the state will give preference
to the use of most up-to-date and safe technologies when approving the mine development programs.
C. ENERGY
Energy is one of Armenia’s most fully operational and cost-effective sectors, and the country is nearly self-sufficient in energy. There is an independent energy regulator for the electricity, natural gas and heating sectors, and significant progress has been made in streamlining the licensing process, eliminating cross-subsidies and establishing cost-effective pricing and tariff structures. Lacking industrial fuel resources,
Armenia places a high emphasis on development of its own renewable energy sources, such as hydro, wind and solar energy.
D. INFORMATION TECHNOLOGY/TELECOMMUNICATIONS
The information technology (IT) and telecommunications sector is one of the most productive in Armenia. The Government has declared IT a priority and is supporting it through various institutions, such as the IT Development and Support Council, chaired by the Prime Minister, and the Enterprise Incubator Foundation. Armenia’s IT and telecommunications industry has already attracted global brands such as Synopsis, which has located a considerable part of their operations in Armenia, Microsoft, National Instruments, Mentor Graphics, Ericson, and Orange. Currently, there are more than 300 IT and telecom companies in Armenia.
E. CHEMICAL/PHARMACEUTICAL
Thanks to its tradition of producing high quality chemical products, over the last decade Armenia's pharmaceuticals industry has grown into one of the most dynamic sectors of the economy. Exports account for 57% of output, and average annual export growth has been 24% from 2003. Such growth is based on a
skilled and highly educated workforce, enthusiastic and effective entrepreneurs, and significant domestic and foreign direct investment.
TRANSPORTATION
Roadway System
Roads provide access to employment, markets, education, and health services, and thus are crucial for economic
development. Since 1990, road networks have expanded in all developing countries in Asia except Armenia, Georgia, Kazakhstan, Azerbaijan, and Tajikistan. China and India account for almost two-thirds of the roads in Asia. Armenia has slightly less than 8,000 kilometers of roads, 94 percent of which are paved; however, some of
the paved roads need major rehabilitation.
Rail Transportation
Armenia’s railway network plays a crucial role in providing mobility for people and freight. The network includes the metro system that serves commuters in Yerevan. The metro has limited coverage and in recent years has lost
some of its market share to minibuses. Most of Armenia’s railways were built during the Soviet era. Central planning dictated that rail would be the
primary mode of transport, so little emphasis was placed on costs and market needs. The system was designed to handle large traffic volumes and, in some cases, served remote areas. The former Soviet Union rarely updated its
railway technology after the 1960’s. The railway system has seen its operations shrink 10-fold since independence, primarily due to the closing of
Armenia’s borders with Azerbaijan and Turkey. The growing mining industry in southern Armenia has become a major market for freight service, as the mine output needs to be transported to ports on the Black Sea. About 370 km. of 732 km. network are fully operational. Armenia relies on its railway system for about 70 percent of imports
and exports, but there used to be a lot more passengers and freight.
The former Soviet Union rarely updated its railway technology after the 1960’s
Since June 2008, a subsidiary of Russian Railways, the South Caucasus Railway, has been operating the Armenian rail system. They have invested more than $250 million in upgrading the infrastructure and modernizing
the system. In 2012, a contract was awarded to Dubai-based Rasia FZE (a Rasia Group investment company) for the feasibility, design, financing, construction, and operation of a new railway link between Armenia and Iran. The
Armenia-Iran railway is called the Southern Armenia Railway project. The feasibility study results indicated that the route will be 305 km. long and would cost approximately $3.5 billion to build. As the key missing link in the
International North-South Transport Corridor, the Southern Armenia Railway would create the shortest transportation route from the ports of the Black Sea to the ports of the Persian Gulf.
Air Transportation
Air traffic has increased significantly in much of East, South, and Southeast Asia since 1990. There were smaller increases, and even some declines in air traffic in Central and West Asia and the Pacific. Azerbaijan, the Kyrgyz Republic, and Turkmenistan had lower levels of air traffic in 2012 than in 1990. However, Armenia had a 20 percent growth of air passenger flow in 2014. Armenia has three main airports: Zvartnots, Shirak, and Erebuni. Zvartnots Airport is the principal gateway to
Armenia. The new, two-story terminal building that was built by a private developer for $173 million is able to handle about 3.2 million passengers a year, which should be able to accommodate the ever-growing demand until In October 2013, Armenia passed the “open skies” policy for air transportation. According to this policy, the civil
aviation in the country is now open to all airlines that meet international standards. It was expected that this policy would spur economic development and the reduction of airfares. However, the latest data indicates that the number of operating air carriers in Armenia has decreased from 35 to 27 since the launch of the “open skies”
policy. Czech Airlines and AlItalia are two of the major airlines that stopped flying to Armenia, and Etihad Airlines is planning to discontinue its operation in September 2015. Moscow airports are becoming the main air hub for Armenian passengers as a result of three Russian airlines— Aeroflot, Transavia, and S7—providing regular daily flights. Approximately 50 percent of flights from Zvartnots Airport land in the Russian capital.
CULTURE AND TRADITION
Armenia is a land rich with cultural heritage and traditions. While some traditions date back thousands of years, like its people, they have evolved to benefit the modern age and are still celebrated today. The culture of Armenia encompasses many elements that are based on the geography, language, faith, literature, architecture, dance, and music of the people.