The mining sector is a major contributor to the local economy, accounting for 22% of GDP, 61% of industrial value-added, 94% of exports by value and 85% of foreign direct investment in 2012, according to figures from the National Statistics Office. Mongolia’s main proven reserves include coal, copper, hard-rock and placer gold, silver, iron ore, molybdenum, fluorspar, zinc, tungsten, lead, tin, uranium…
Mongolia’s insurance industry is expected to grow rapidly over the next few years as the economy expands and more firms and individuals become familiar with insurance products and the need to be covered. The market is open – a rarity in Asia – and international investors and strategic partners are taking a close look at potential acquisition targets and partners. With the state controlling the…
For the Mongolian Stock Exchange (MSE), 2013 was a year of transition. While performance remained weak and trading was exceedingly thin, preparations were being made for a comeback. The hope is that the foundation has been set to make 2014 a year of recovery for the market. Under previous legislation custodian banking was not available; however, under a new law, international investors will not have…
Mongolia’s banking system is relatively young and untested, and, therefore, the Central Bank of Mongolia is facing a range of challenges. One such example is the rapid drop in the tugrik, which lost approximately 20% of its value over the past year, placing pressure on the banking system but also reducing the price of exports. Currently, there are no limitations placed on foreign ownership of banks,…
Having an estimated $1.3trn in mineral deposits at current market prices, Mongolia holds great promise for investors. With GDP standing at just $10.3bn in 2012, a single large project has the potential to significantly boost foreign direct investment and growth. The core budget deficit declined from $319m in 2012 to $178m in 2013, equal to 1.7% of GDP; however, off-budget spending was rising. The government…
With its position adjacent to two of the world’s largest economies, Russia and China, Mongolia’s trade potential holds significant appeal for foreign investors. Furthermore, just as it strives to diversify the sources of its foreign direct investment, the country’s policy of cultivating “third neighbours” is set to broaden trade patterns geographically and should gradually improve the terms…
Mongolia is home to a vast desert in the south, large freshwater lakes in the north-west and dry, grassy plains throughout most of the rest of its territory. Although its borders stretch 8220 km, its only neighbours are the superpowers Russia and China, a fact that has shaped much of Mongolia’s political and economic history. The country has a vast wealth of mineral resources – over 6000 deposits…
As may be expected in a fast-growing emerging market, Mongolia’s legal framework – like many other aspects of Mongolian society – is in a constant state of flux. At first blush, since foreign investors tend to crave legal certainty, this would appear to be a weakness of the country’s legal system. However, investors should take comfort in the fact that over the long term the changes to Mongolia’s…
HOTEL ULAANBAATAR Grand Chinggis Square, 14 Ulaanbaatar 14192 T: (+976) 1132 0620 F: (+976) 1132 4485 www.ubhotel.mn info@ubhotel.mn Rooms: 22 standard single rooms, 20 standard twin rooms, 20 superior rooms, 35 deluxe rooms, seven junior suites and a presidential suite. Business & Conference: Four private dining rooms and four conference halls for 20-100 people, all with…
Etiquette A handshake usually accompanies a first introduction in a business setting and is used both as a greeting and farewell. Although people in the urban centres are less strict about local customs when greeting, it is customary and seen as a sign of respect to offer things (business card, pen, etc) with your left hand under your right elbow. Mongolians tend to respect foreigners more who know…
