Armenia’s defense industry emerging as key driver of economic growth, Minister says

Armenia’s defense industry is no longer serving solely as a guarantor of the country’s security but is rapidly evolving into an important engine of economic development, Minister of High-Tech Industry Mkhitar Hayrapetyan said during the Silicon Mountains forum. Speaking about the government’s strategy to develop the domestic defense sector, Hayrapetyan stressed that the industry has achieved significant progress in recent years, transforming from an emerging field into a growing contributor to the national economy and scientific advancement. “The defense industry today not only ensures our country’s defense capabilities, but is also becoming an important driving force of the economy,” the minister said.

Hayrapetyan revealed that in May, three Armenian defense companies successfully exported military products to customers on two different continents, marking a milestone for the country’s defense manufacturing sector. According to the minister, the products have already been delivered, payments completed, and additional contracts worth tens of millions of dollars are currently being negotiated with new international partners.

The minister said these achievements, together with the completion of the government’s first three-year defense procurement program, created the conditions for Armenia to publicly showcase the results of its efforts and present its growing defense industry to international markets.

Hayrapetyan emphasized that the sector’s development stems from a strategic decision by the Armenian government to establish a strong domestic defense-industrial complex capable of supplying the country’s armed forces with innovative technologies and advanced military solutions.

He noted that Armenia’s engineering and scientific communities possess the expertise necessary to continuously generate new technologies, enabling local companies to provide cutting-edge products for the military.

Beyond strengthening national security, the minister highlighted the industry’s growing economic impact. Defense manufacturing has already generated approximately 70 billion drams in economic turnover, creating what he described as a new segment of the Armenian economy with significant export potential.

Hayrapetyan also underscored the sector’s role in supporting science and innovation. Government investment in defense production, he said, represents a direct investment in engineering, research, and technological development, while creating industrial demand for scientists, physicists, chemists, and researchers. “For the first time, the state has created industrial demand for our scientific community through government procurement,” he said.

According to the minister, the government’s first three-year procurement program involved direct investments totaling 172 billion drams and has been deemed successful. Building on those results, authorities have already approved a new long-term procurement framework worth 190 billion drams, which Hayrapetyan described as another major investment in both the economy and science.

While celebrating recent achievements, the minister stressed that Armenia’s defense industry remains at the beginning of a long development journey. He called for continued reforms, greater flexibility from government institutions, and a more attractive environment for investors and new market participants.

Hayrapetyan praised the efforts of Armenian engineers, scientists, and defense manufacturers, noting that their work over recent years has laid the foundation for the industry’s success. “What you will see today is the result of only a few years of work,” he said. “We must continue to learn, improve, innovate, think bigger, and dream bigger.”