Consulting Industry and Investment Environment in Armenia

Consulting in Armenia: Along with the economic growth, the Armenian private and public sectors have correspondingly amplified the requirements and expectations towards consulting services offered by locally based advisory firms. The demand for accounting and assurance, legal and management advisory services has grown in line with the reformation and gradual augmentation of state regulatory systems, the development of economy sectors, and increased business activity in Armenia and the South Caucasus. Following this paradigm of the market growth, Ameria has quickly developed into a highly credible presence on the domestic finance and advisory scene and created a uniquely structured system of advisory services enabling its local and foreign clients to acquire an integrated and targeted approach and solutions.

Investments in Armenia: The RA Law on Foreign Investments and RA Profit Tax Law establishes certain privileges for foreign investors. Particularly, it has stipulated that they are exempt from profit tax during the initial two years following the year of meeting the requirement on investment. At present, big investors with a shareholder capital of 500 million drams may have a 100% discount of profit tax until 2009, taking into consideration that this privilege stated under the law shall be in force only for two more years. Consequently, at the moment foreign investors have an advantage over the local ones. However, Armenian investors may also avail themselves these privileges if they enter into partnership with foreign investors. In addition, the Armenian legislation on foreign investments ensures compensation for damage caused by illegal actions of the government and provides guarantees against nationalization and confiscation, as well as against undesirable legislative amendments. The legislation on currency regulation is also quite favorable and liberal. It allows converting the profit and transferring it to any financial institution upon the investor’s choice.

High jump to New Champions: AMERIA is the first Armenian company which became a founding member of the Community of Global Growth Companies

Dalian, People’s Republic of China, 6-8 September 2007: First Annual Meeting of the New Champions

From Davos to Dalian: The Inaugural Annual Meeting of the New Champions

Ameria CJSC, the first Armenian company nominated for a membership in the Community of Global Growth Companies, was engaged as a founding member of the World Economic Forum’s community of Global Growth Companies.

In January, 2007, world leaders convened in Davos Switzerland for the World Economic Forum’s Annual Meeting entitled "The Shifting Power Equation." Discussion focused on the changing business landscape: the growing prominence of emerging economies, the increasing power of individuals and small groups over large institutions and the stronger role of consumers over producers.

Davos 2007 participants recognized that a new class of leaders and innovators – the New Champions – have emerged and that they are re-shaping business and transforming society. The World Economic Forum is now using its unrivalled history of partnership with the Chinese government and industry to create a powerful platform for interaction and cooperation between traditional and new actors, between East and West.

Creation of a Community of Global Growth Companies

A leader in the Armenian market of advisory services and contributing excellence to the community by adding values in the world of advisory and assurance, Ameria adheres to the principles of corporate social responsibility, confidentiality and objectivity, thus earning the trust, cooperation and loyalty of its clients, partners and associates.

 Disclosing the new initiative of the World Economic Forum Community, already comprised of the 1,000 foremost global enterprises, Klaus Schwab, Forum Founder and Executive Chairman, announced the creation of a new community of fast-growing companies intended to join the ranks of global multinationals in the next 5 to 10 years. "These are a very special group of companies that have not really been understood," said Schwab.

The meeting focused on the role the new generation of fast-emerging multinational companies – the New Champions – is playing in substantially changing the global business landscape. Participants from 90 countries signed up and more than 1,700 participants took part. Participants included business leaders from the fast growing companies as well as leaders from global corporations. They were joined by national and international political figures, leaders of the world’s most competitive cities and the fastest growing regions and states, experts, and the international media, to exchange ideas and share new perspectives.

At the closing of the Inaugural Annual Meeting of the New Champions in Dalian, Klaus Schwab welcomed 125 founding members to the Community of Global Growth Companies with Ameria the first Armenian company becoming a New Champion and a founding member to the Community.

The New Champions

The “new champions” are a new generation of companies that will fundamentally change the global competitive landscape – the Global Growth Companies. These business champions come primarily from rapidly growing emerging markets, such as China and India, but also include fast movers from developed economies.

 New Champions Companies have a proven track record of success and are ready to take the next step and join the global top-500 companies within the next five to ten years. This Summer-Davos summit is specifically designed for these companies, where they can network, cooperate and exchange ideas. Existing World Economic Forum members will also be there, to bring their experience and expertise while sharing new perspectives.

Global Growth Companies are businesses that have demonstrated a clear potential to become leaders in the global economy based on such factors as a company’s business model, growth record, leadership and the markets it serves. Some of the typical indicators of these companies are:

• Are expanding outside their traditional boundaries.
• Experience strong growth rates.
• Have revenues typically between US$ 100 million and US$ 5 billion.
• Have demonstrated leadership in a particular industry.
• Have an outstanding executive leadership. 

World Economic Forum Partners for the Inaugural Annual Meeting of the New Champions

Many world leading companies and organizations are the Meeting Partners, who support the New Champions in their drive to develop a global reach while implementing world-class governance structures. Some of the Partners are Apax Partners, Booz Allen Hamilton, Deutsche Bank, Dubai Holding, Ernst & Young, Intel Corporation, International Bank of Azerbaijan, KPMG, McKinsey & Company, Nike, NYSE Euronext, PricewaterhouseCoopers, Siemens, Troika Dialog Group, Zurich Financial Services, etc.

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging leaders in partnerships to shape global, regional and industry agendas.

Incorporated as a foundation in 1971, and based in Geneva, Switzerland, the World Economic Forum is impartial and not-for-profit; it is tied to no political, partisan or national interests (www.weforum.org).