Mongolia

As Mongolia marks 85 years since its building sector was formally established, intensive demand for private and public construction is creating jobs and furthering the need in the residential segment, while domestic involvement in foreign-led mining projects is adding to the overall demand in the sector.

Mongolia’s government is emphasising its plans to diversify from reliance on mining-related revenues and investment in the hope that the development of the manufacturing and agricultural sectors will create a more advanced industrial base.

With Mongolia’s mining resources set to generate huge national wealth in coming years, a rise in consumer and investor confidence will likely see the retail sector expand rapidly.

Mongolia is tightening regulation of its financial services industry in preparation for an expected wave of foreign direct investment, with reforms improving supervision of the banking sector and outside help sought to enhance oversight of the Mongolian Stock Exchange (MSE).

Economic growth linked to Mongolia's huge mining potential has raised the prospect of long-awaited funds arriving for the construction of badly needed infrastructure projects in power, transport and other municipal sectors.

Mongolia’s mining sector is riding high, with the vast Tavan Tolgoi “five hills” coal mine expected to start exports and secure an international partner in the next few months. Meanwhile, a large copper and gold mine is set to start producing ahead of schedule. However, a confusing outcome to an investment agreement signed over Tavan Tolgoi has weighed on investor confidence recently.