A parliamentary committee on Wednesday approved a bill drafted by the Ministry of Economy seeking to reform and modernize Armenia’s legal framework for investments, thereby defining guarantees and protections.

Applying to both foreign and domestic investors, the new regulation establishes the legal framework for investments in the Republic of Armenia, the rights, freedoms, and guarantees applicable to investors and their investments, the framework for protecting investors’ rights, investors’ obligations, the legal basis for investment incentives, and more.

Lilia Sirakanyan, Deputy Minister of Economy of Armenia, stated at the parliamentary committee on economic affairs that the aim of the bill is to establish a legal framework for investment relationships that meets modern requirements for both domestic and foreign investors.

The Deputy Minister also noted that the current law on foreign investments, adopted in 1994, does not provide comprehensive regulation aligned with the contemporary needs of the investment process.

“One of the key features of the draft law is that its provisions will apply not only to foreign but also to domestic investors and their investments. Currently, the existing law applies solely to foreign investors and does not regulate legal relations involving domestic investors,” Sirakanyan said.

She added that the law enshrines the principle of non-discrimination through both the national treatment and most-favored-nation (MFN) regimes.

Under the national treatment regime, foreign investors will have the same rights, freedoms, and obligations as domestic investors. The MFN regime ensures that an investor from a foreign state can expect the same favorable treatment from the Republic of Armenia as is applied to any other foreign investor.

Sirakanyan noted that exceptions apply only to customs unions, free economic zones, economic unions, and other provisions established by international agreements.

According to the Deputy Minister, the draft also aims to consolidate investors’ rights and guarantees, which are currently scattered across various laws and legal acts, into a single legal instrument.

The bill will be debated at the upcoming plenary session of Parliament.

The bill was earlier approved at the Cabinet meeting in February.