Travel, Tourism & Hospitality

UAE leads foreign investment in Armenia as direct flights rise to 26 weekly

ABU DHABI
UAE leads foreign investment in Armenia as direct flights rise to 26 weekly

By Harriet Shephard  

The UAE and Armenia are increasing their efforts to boost their economic and tourism ties and increase tourism across both countries.  

The signing of the Services Trade & Investment Agreement by the UAE and the Republic of Armenia in February 2026 marked a pivotal milestone in this regard. 

Increasing the UAE's market-access commitments to Armenian firms from 32 to 122, it saw the UAE overtake Russia to become the leading foreign investor in Armenia.    

In September,  Abdulla bin Touq Al Marri, Minister of Economy and Tourism for the UAE then met with H.E. Gevorg Papoyan, Minister of Economy of the Republic of Armenia to discuss “ways to boost visitor movement and tourism exchange, jointly promote destinations in both countries, and share expertise.” 

According to an announcement by the UAE Ministry of Economy and Tourism, the UAE welcomed 15,832 Armenian visitors from January to May 2026, and 95,990 during 2025.   

Meanwhile, at the recent Tourism Regional Forum in Dilijan, Tigran Gasparyan, Deputy Minister of Economy of the Republic of Armenia noted that Armenia received approximately 2.2 million tourist visits in 2025, performing eight percent above pre-pandemic levels.   

However, he added that most tourists still do not stray outside of Yerevan, with 65 percent of the country’s hotel supply being within the capital.    

“Our goal is now not just to encourage visitors to come to Armenia, but to encourage them to visit for longer and outside of Yerevan as well,” explained Gasparyan.   

Another aspect that will drive tourism in the two countries is the recent increase in direct flights between the UAE and Armenia.   

Adding to the existing options offered by flydubai and Air Arabia Abu Dhabi, Etihad launched ten Abu Dhabi-Yerevan routes per week in June 2026, raising the number of direct flights per week to 26.  

As reported by Travel & Tourism News Middle East in July, GCC citizens and eligible residents can also enjoy visa-free access to Armenia under an agreement running until July 2027.   

In addition, Armenia's tourism infrastructure and transportation links are being expanded rapidly. 

With some areas experiencing a shortage of accommodation during the peak summer months and during large events such as the recent COP17, a national €120.5 million Tourism and Regional Infrastructure programme has been introduced that will run until 2030.   

Focused on developing hotels, restaurants, roads and infrastructure in areas outside of Yerevan - including Areni, Dilijan and Dvin - it aims to encourage visitors to head outside of the capital and explore Armenia’s natural landscapes and historical sites.  

One development company contributing to this mission is Green Rock. The Armenian business has invested more than $160 million into developing the tourism, education and residential sectors of the mountain town of Dilijan, with the biggest project being the construction of the 210-room Hyatt Regency Dilijan. 

Hospitality management group Kaioon Management has also just opened the 92-room Dili Town Resort & SPA in Dilijan, and it plans to open another property at Lake Sevan in the Gegharkunik region in the near future as well.    

Furthermore, the Armenia Market Pulse report by global consulting and services firm HVS states that 20 hotel projects are set to open in Armenia before the end of 2030.   

Big international brands feature heavily in these upcoming openings, including seven Accor properties, three Hilton, three IHG, two Hyatt (including the Hyatt Regency Dilijan), two Wyndham and one Marriott.   

Finally, the announcement of TRIPP, the Trump Route for International Peace and Prosperity, is also predicted to boost tourism in Armenia.  

Backed by the US, the transport and connectivity project will link mainland Azerbaijan with its Nakhchivan Autonomous Republic through the southern Armenian province of Syunik.  

Speaking to Travel & Tourism News Middle East at ITB Asia in Singapore, Karina Hovsepyan, Founder of Phoenix Tour Armenia said: “There are a lot of investment projects happening in southern Armenia and we have seen an increase in interest from European countries ever since the TRIPP route was announced. Efforts are also being made to improve Gyumri Shirak International Airport, Armenia’s second biggest airport, and get it ready to offer more international flights to Europe and elsewhere.”