Armenia could become a small transit hub: economist on developments around iran JAMnews Yerevan
An economist is assessing Armenia’s evolving role in the economy, influenced by ongoing events in Iran and the broader Middle East. Agasi Tavadayan highlights a significant influx of capital originating from Iran, the Gulf states, and Russia. This shift presents both risks and opportunities for the country.
The substantial dollar inflows are causing pressure on the dram, Armenia’s national currency, prompting the Central Bank to intervene. Tavadayan cautions that the dram could “sharply depreciate, as it did in 2008 and 2014,” emphasizing the need for robust risk management. Despite the potential instability, the capital inflow could stimulate growth in the construction sector, which experienced a slowdown in 2025.
Furthermore, Armenia has the potential to leverage changes in air routes and establish itself as a “small transit hub.” The economist believes Armenia can capitalize on this reorganization, particularly given Dubai’s diminished role as a global aviation hub. Following the Russia-Ukraine conflict, Armenia received a significant inflow of capital from Russia, contributing substantially to its 2022 economic growth. Currently, capital is flowing from Iran, beginning in September 2025, and from the Gulf states, particularly the United Arab Emirates.
Investors are relocating assets, often passing through Armenia. The situation underscores the importance of the South Caucasus as a reliable air bridge, particularly as routes over Siberia have become unavailable due to Russian airspace restrictions. Armenia’s airspace, hampered by border issues and alternative route convenience, could benefit from this shift, potentially becoming a small transit hub.
An economist notes that while Armenia doesn’t heavily rely on food imports from Iran, prices could rise if cargo transport between the two countries decreases.
Topics: #armenia #iran #economist
Armenia might transform into a minor transportation center, according to an analyst examining economic shifts linked to Iranian developments.
Armenia might evolve into a minor transportation center, according to an analyst regarding developments concerning Iran.