UAE Becomes Top Foreign Investor in Armenia as Direct Flights Increase to 26 Weekly
The UAE has become the leading foreign investor in Armenia, following an investment agreement that significantly boosted market access for Armenian firms and a surge in direct flights.
Economic and tourism ties between the UAE and Armenia are rapidly expanding, with the UAE now the leading foreign investor in Armenia.
Key Agreements and Economic Impact
This increased investment follows the Services Trade & Investment Agreement signed by the UAE and the Republic of Armenia in February 2026. This agreement expanded the UAE's market-access commitments to Armenian firms from 32 to 122, directly leading to the UAE surpassing Russia as the top foreign investor in the country. In September, Abdulla bin Touq Al Marri, UAE Minister of Economy and Tourism, met with H.E. Gevorg Papoyan, Armenia's Minister of Economy, to discuss further boosting visitor movement and tourism exchange between the two nations.
Boost in Tourism and Connectivity
The UAE welcomed 15,832 Armenian visitors from January to May 2026, building on the 95,990 visitors in 2025. Armenia recorded approximately 2.2 million tourist visits in 2025, exceeding pre-pandemic levels by eight percent. A key driver for this tourism growth is the increase in direct flights. Etihad launched ten new Abu Dhabi-Yerevan routes per week in June 2026, bringing the total number of direct weekly flights between the UAE and Armenia to 26, in addition to existing services from flydubai and Air Arabia Abu Dhabi. GCC citizens and eligible residents also benefit from visa-free access to Armenia until July 2027.
Armenian Tourism Infrastructure Development
To accommodate growing tourism and encourage visitors beyond the capital, Armenia has launched a €120.5 million Tourism and Regional Infrastructure programme running until 2030. This initiative focuses on developing hotels, restaurants, roads, and infrastructure outside Yerevan in areas like Areni, Dilijan, and Dvin. Development companies like Green Rock have invested over $160 million in Dilijan, including the construction of the 210-room Hyatt Regency Dilijan. Hospitality group Kaioon Management recently opened the 92-room Dili Town Resort & SPA in Dilijan and plans another property at Lake Sevan. The Armenia Market Pulse report by HVS indicates 20 new hotel projects are slated to open before 2030, including properties from major international brands such as Accor, Hilton, IHG, Hyatt, Wyndham, and Marriott.
Questions, answered
- What agreement led to the UAE becoming the top foreign investor in Armenia?
- The Services Trade & Investment Agreement, signed in February 2026, increased the UAE's market-access commitments to Armenian firms from 32 to 122, directly contributing to this outcome.
- How many direct flights are there now between the UAE and Armenia weekly?
- Following Etihad's launch of ten new Abu Dhabi-Yerevan routes per week in June 2026, the total number of direct flights between the UAE and Armenia has increased to 26 weekly.
- What is Armenia doing to develop its tourism infrastructure?
- Armenia has introduced a €120.5 million Tourism and Regional Infrastructure programme, running until 2030, to develop hotels, restaurants, roads, and infrastructure in regions outside Yerevan, such as Areni, Dilijan, and Dvin.
- Are there any major hotel developments planned in Armenia?
- Yes, according to the Armenia Market Pulse report, 20 new hotel projects are expected to open in Armenia before the end of 2030, including properties from international brands like Accor, Hilton, IHG, Hyatt, Wyndham, and Marriott.
- Who can benefit from visa-free access to Armenia?
- GCC citizens and eligible residents can enjoy visa-free access to Armenia under an agreement that remains in effect until July 2027.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.