Mongolia

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...

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...

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...

Mongolia’s resource-based economy is forecast to be one of the fastest growing in the world over the next two decades. The two big stories of 2011 were Tavan Tolgoi, a coal mine now ramping up its production, and Oyu Tolgoi, a copper and gold mine that should begin operations in 2013. The IMF expects investment in these projects, and growth in spinoff industries, to drive GDP growth to 12% in...

Mongolia’s political history is dominated by its relationships with its only two neighbors: China and Russia. Although in the 13th century, Genghis Khan conquered lands as far away as eastern Europe and established one of the largest empires in history, Mongolia fell under Chinese dominion by the 17th century. The fall of the Qing Dynasty in 1919 paved the way for Bolshevik Russia to turn...