YEREVAN, August 3. /ARKA/. The government of Armenia decided today to establish a state-owned closed joint-stock company – Meghri Free Economic Zone. The company’s authorized capital is 50,000 drams (less than $100). The company is created to ensure the establishment and operation of the free economic zone.

The free economic zone in the southern Armenian Meghri, near the border with Iran is estimated to cost $32 million, of which $28 million are capital expenditure. It is said to create 2,500 new jobs and increase Armenian exports by 30%.

According to the government, the main purpose of the free economic zone is to help boost trade and economic relations with Iran and other countries of the region, help the development of the southern Armenian province of Syunik, as well as position Armenia as a link between Iran and members of the Eurasian Economic Union (EEU) and Georgia.

About 120 foreign companies will be hosted by the free economic zone, which are expected to invest a total of $350-400 million. This in turn will allow exporting $100 million worth products annually.