Mongolia Articles & Analysis

Given the significant foreign direct investment needed to achieve its development goals, Mongolia has strong motivation to improve its attractiveness to investors. The government is therefore adjusting its policies, while new laws are expected to gradually reinvigorate foreign investment flows.

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Like many of its emerging market peers, Mongolia felt the weight of falling commodities prices and weaker global demand in 2015. However, progress made in moving major mining and transport infrastructure projects forward is expected to pave the way for recovery in the near to medium term.

With renewed backing from international lenders, Mongolia is moving ahead with plans to broaden its logistics base and improve access to export markets, with a raft of transport infrastructure projects shifting into gear.

The cashmere industry in Mongolia is making its mark on the global fibres market, with an abundance of quality raw materials and continuing investment in downstream processing capacity.

Mongolia’s remote regions are beginning to feel the benefits of public and private initiatives aimed at attracting investment and promoting rural development in a bid to tackle rising levels of urbanisation and imbalances in regional wealth.

Backed by international support, Mongolia is rolling out advanced ICT programmes to support the provision of government services, improving accountability and access to data. 

The current drive in Mongolia to promote growth and foreign investment appears likely to yield results, as a key breakthrough in a long-running dispute over the expansion of a mine will help act as a stimulus for a 10-year, $1bn sovereign issue in the coming months.