Mongolia

As a landlocked and historically underdeveloped country, Mongolia’s transport challenges are steep. Airports are dilapidated, roads are cracking, and railways need updating. The government is planning major investments on all fronts, including upgrading roads to serve the huge freight trucks that travel to and from mining sites, rehabilitating Ulaanbaatar’s urban network. Some $5bn will be spent...

Mining is the driving force of the Mongolian economy, contributing 30% of GDP, and upcoming projects will surely increase this ratio. The two biggest are Tavan Tolgoi, a massive coal mine, and Oyu Tolgoi, a copper and gold mine, which should both be in full operation by 2013. In addition, Mongolia has potentially viable deposits of rare earth minerals, although extraction has yet to begin for...

Mongolia’s energy sector has long depended entirely on the one resource it possesses in abundance: coal. This paradigm is unlikely to change drastically in the near future, but the country is looking to diversify its energy portfolio while modernising infrastructure. Solar and wind power are candidates for development, given Mongolia’s 257 cloudless days per year and its wide, open spaces. With...

The insurance sector, like that of many emerging markets, is small, undersubscribed, poorly staffed and confusingly regulated. However, Mongolia’s growth story has driven annual premium growth of around 20%, and new initiatives should help the industry grow further. Motor insurance, for example, became mandatory on January 1, 2012. Eight firms dominate the sector, with legacy provider Mongolia...

Mongolia’s bourse is the focus of much investor interest, given its massive resource endowment and relative obscurity. In some ways, Mongolian stocks are proxy for Chinese securities, which are unavailable to foreigners; Chinese growth is directly linked to increased demand for Mongolian coal and other minerals. The barriers to investment in the Mongolian Stock Exchange are typical of a small...

The banking sector has recovered from a financial crisis in 2008-09 that resulted from economic overheating and internal inflation. The sector is set to benefit from an influx of new mining projects, although the scale of the mining enterprises themselves far outstrips the available capital of all top banks combined. Instead, banks will focus on lending to service industries and to consumers who...