YEREVAN. – Any country be it France, Germany or Russia, has its risks inherent to the economy of that particular country. The investment risk in Armenia is no higher than in other countries where Diaspora Armenians make investments. The advantage of Armenia is that here Diaspora Armenians are familiar with the common culture, language and nation. This was what Rafi Manoukian, CEO, Ameria Group Inc., highlighted in his interview with Armenian News-NEWS.am. Ameria Group, a business, financial and legal advisory company, established its representative office in the United States in 2011. According to the CEO of the Office, the aim was to attract investments to Armenia from the US and provide in-depth information about the investment market of Armenia. Below you can read the full version of the interview of Rafi Manoukian, CEO, Ameria Group Inc., to Armenian News-NEWS.am.

Ameria Group’s LA Office, which was established with the aim to provide business advisory services and attract investments, has already been functioning for about two years. This is quite enough to establish a good information base and contacts. Certainly, it is difficult to make a self-evaluation, yet how would you assess the work done by a 10-grade scale?

Initially, it was difficult to proceed, which is natural. Any business based outside the United States  has to pass through several stages of establishment in the US. Initially our task was to make Ameria known in the US so that the Diaspora is aware about Ameria Group Inc. offering comprehensive package of advisory services.

I believe that Ameria has successfully completed the first step to brand awareness. The opening ceremony of Ameria Group Inc. was attended even by the President of the Republic of Armenia. The ceremony was followed by a number of events with Armenian-American Chamber of Commerce, joint meeting with Artsakh Development Group on “Investments in Armenia and Arstakh”, attended by prominent representatives of the community and businessmen. This investment forum initiated great interest within the community. So, I can say that the initial stage has already been finalized and we have stepped into the next, more active stage.

As to your question regarding my evaluation of the first stage of our activity, I think we got 8 points out of 10. Though the first stage of establishment was difficult enough, I think the overall performance was very positive and efficient. We successfully completed the first test and now we have a springboard for quicker development. We build an investment bridge between the American Diaspora and Armenia on already established base to trigger development of the Armenian economy.

Your company has quite a difficult mission in the US by trying to attract investments to Armenia. Generally, businessmen are very pragmatic and they will hardly take any risks especially when the matter concerns their funds. In this regard, what are the benefits of the Armenian economy which you highlight during meetings?

Any country, be it France, Germany or Russia has its risks inherent to the economy of that particular country. The investment risk in Armenia is no higher than in other countries where Diaspora Armenians make investments. The advantage of Armenia is that here the Diaspora Armenian is familiar with the common culture, language and nation. So it is easier to make investments in Armenia, since in a foreign country you should know their language, be familiar with their legislative and business fields. Each year the Diaspora makes its investments as an Armenian by providing aid to Armenia via various funds and charity organizations and thus preserving the ties with the Motherland.

Being Armenian and having a well-informed partner in the person of Ameria are definitely a valuable asset. As to risks, there is the rule: the higher the return, the higher are the risks. This is true also for America. If the investor prefers making risk-free investments, he can keep his capital within the US and receive 0.5-1% income. If the investor expects higher profitability than just keeping his funds here in a bank, he must be ready for more risky investments. In Armenia risks are a bit higher, but the return is higher, too.

We provide to Diaspora Armenians possibility and options to earn higher returns. For example, incoming tourism in Armenia is expected to grow and there is a big market for highly profitable mid-class hotels. Investments always imply risks. Our task is to present to our compatriots an in-depth risk/return analysis vs. similar investments in the US.

The company you run operates in the world’s number one economy. That is to say you have access to information which enables you to draw parallels between the Armenian and American investment fields. Now let’s forget that the US market is the largest in the world and compare the terms and conditions more favorable for business administration. What are the omissions of Armenia’s government? What are the disadvantages you warn clients of?

An investor expects stability of law in any country. Also he expects, that the law should be effective and equal for everyone. For instance, an investor has executed a contract. A question arises regarding to what extent he is protected by law and to what extent the contract meets the investor’s interests. Would it be possible to adequately protect the investor’s interests in court in case of litigation?

Ameria considers it its duty to inform the investors that the Republic of Armenia Law “On Foreign Investments” is very favorable for investors. Our advice is that for the best use of this law it is absolutely necessary to make an investment only after getting professional consultation and once you decide to make an investment – comply with all the requirements of law. The law itself is favorable and Ameria’s Legal Team is here to help the Diaspora investor to adjust all his operations to law, including all details which initially might seem unimportant but which could cause problems in future if no proper legal consultation is provided to the investor. Often Diaspora Armenians make investments guided by emotions and resort to their relatives and friends to protect their investments, rather than to professional assistance. Of course, there is an effective law, but it is hardly always enforced and construed in the same way. This is where professional assistance becomes a must.

Certainly, there are drawbacks in Armenia, but there are also examples of successful investments when business was established on proper legal basis and interests were properly represented in terms of legal matters.

With its extensive experience and a team of 15 lawyers, Ameria provides professional assistance to investors to ensure mitigation of risks which is a key to successful business.

How many businessmen agreed to make investments in Armenia during these two years? What was the volume of investments made? Which industries do the American businessmen mostly prefer?

Investors are interested in the industry of services, such as “Call Center” services, or information technologies. Interest in franchising is also rather high. As to results, I would prefer to talk about them later since our aim at this stage was to increase brand awareness and present the wide opportunities of Ameria, the importance and necessity of professional advisory services required for making investments in Armenia. I think we were a success and this is proved by the daily increasing number of interested people and businessmen making definite deals.

Some 25 years ago Armenian economy was comparable with the Japan economy in terms of high tech and chemical production. Armenia was among the first countries to have created a computer and among the fewest countries in the world to have had a robot manufacturing plant. As to its chemical industry, particularly rubber production, it was among the 5 top producers of the world (the USA, Germany, Japan and France). What prevents people from making investments and rehabilitating the economy with a huge production and profitability potential?

The economic infrastructure in our country collapsed along with the crash of the Soviet Union and the recovery of our economy started from scratch. Let’s not forget the blockade either. Investments and building of new infrastructure requires time.

Yet it’s great that now Armenia acquired new business opportunities. The market is not oversaturated as it is the case with America.

Ameria’s mission is to promote the development of the Armenian economy and present the market and business opportunities available in Armenia to our investors from Diaspora.

For instance, recently Ameria conducted a research in tourism and hotel industry: the findings were phenomenal. According to them, a great flow of incoming tourists to Armenia is expected during the coming years, while the number of the available mid-class hotels is too small to meet the growing demand. This may be an excellent niche for the Diaspora Armenians to invest in and to satisfy the demand of the Armenian market.

At the end, we would like to ask whether or not you expect vitalizing of investment field in Armenia and are there any preconditions for that?

Ameria Group’s initiative to expand its activities abroad and build an investment bridge between Armenia and Diaspora has definitely created solid preconditions for the Diaspora to be continuously updated on the Armenian market and investment field and to have a reliable partner in the Motherland in the person of Ameria Group. We often hear from our clients that due to Ameria they can finally find a comprehensive package of services under the umbrella of one company, while formerly, to make investments in Armenia, they had to glean information from various multiple sources.

There is a growing interest within the community which in its turn implies boosting of Diaspora’s investments in Armenia. The activity of Ameria definitely helps to raise the Diaspora Armenians’ awareness of the investment possibilities in Armenia for them to make national and financial investments, which is both patriotic and profitable.

Foreign investments play a key role in the development of any country’s economy. The small economy of Armenia more than ever needs these investments. It will be very difficult to perform any economic activity in the quickly changing world without a reliable and skilful partner who always keeps track of both internal economic, legal and financial developments and global changes. Ameria Group can become your professional trusted partner while making investments in Armenia. As one of the first financial, investment and legal advisory companies in Armenia, during the 15 years of its existence Ameria has always been among the leaders.