Mongolia

Its sparse population, landlocked location and extreme climate make developing Mongolia’s transportation and logistics infrastructure a challenge. The government is tapping into international markets to address its transportation and infrastructure issues, and in late November 2012 the country raised $1.5bn in a two-part bond offering. Diverse efforts are under way to improve transportation and...

Outdated power plants and grids, alongside a legal environment and tariff regime in need of upgrading, has made investment difficult. However, several efforts, focusing on boosting and diversifying supply for electricity and fuels, and establishing a positive track record for Mongolia as a viable destination for private investment in large-scale energy projects, are under way. The good news is...

The mining sector was a key growth driver of GDP in 2011, when the economy expanded 17.3%. Since 2012 there has been a moratorium on new licences, which is officially set to expire at the end of 2012. Although the major projects are not producing as yet, mining is already the country’s most important economic activity, contributing 20.2% of GDP in 2011, according to preliminary estimates. Coal...

While insurance in Mongolia remains in its nascent stages, important ongoing reforms may yet drive penetration, build local underwriting capacity and develop the first pool of domestic non-bank institutional investors. While the aggregate sums involved remain modest, buoyant growth bodes well for the medium term. The market is dominated by eight firms, which together account for 89% of non-life...

The State Property Committee (SPC) created the Mongolian Stock Exchange (MSE) in 1991 as a vehicle for privatising state assets during the transition to a market economy. Despite early attempts to broaden the share ownership in state firms, shares became concentrated in the hands of a few, and, by 2010, it was estimated that 80% of the market’s capitalisation was owned by a dozen individuals....

The main event for Mongolia’s economy in 2013 will be the opening of the Oyu Tolgoi copper and gold mine, which many see as a make-or-break moment. Coal, presently the country’s most important commodity, declined in price by some 15% in 2012, with volumes slipping by around 22%. In 2012 the current account deficit reached 16.7%, excluding mining-related imports, according to the IMF, compared...