DFID allocates £100,000 annually under a Strategic Fund (SF). The SF was set up to support small scale activities linked to areas identified in the Regional Assistance Plan 2004- 2007 and to take forward low cost strategic initiatives from government, other donors and civil society.

Projects under the SF have included initiatives to increase awareness of the EU and the prospects for Armenia's further integration into Europe, the harmonisation of donor activities, the development of SMEs and set up of websites of 4 regional administrations. Under SF DFID also funded initiatives on increasing the awareness and involvement of Parliament in scrutinising and adopting government’s policy concerning ENP as well as on strengthening the parliamentary democracy in Armenia.