Mongolia is a largely under-developed resource-rich country currently undergoing significant economic transformation. Economic activity in Mongolia has historically consisted primarily of agriculture and herding, but recent discoveries of mineral deposits and favorable adjustments made to foreign investment policies have attracted significant levels of foreign investment into the mining sector. The International Monetary Fund forecasts that real annual GDP growth will be over 25% during the next three years, predominantly driven by the mining sector. Mongolia is located between two significant economic powers —China and Russia—which are its most important trading partners and investors. The coalition government formed in 2008 between two of Mongolia’s largest political parties has focused on attracting a wider pool of foreign investment, re-developing the stock exchange, re-urbanizing much of the population into sustainable housing and re-igniting efforts to develop state-owned mineral assets. While key infrastructure is often lacking, Mongolia has recently been offering a relatively stable and welcoming environment for foreign investment.

Schulze Global sees potential for rapid and sustainable economic growth in Mongolia. The country’s rich mineral deposits and strategic location as China’s immediate neighbor provide a basis for development that will influence all sectors of the economy. Similar to oil-rich Arab nations, the development of Mongolia’s natural resources will lead to significant demand in sectors such as services, real estate and infrastructure. The government’s recent efforts to open up the economy to foreign investment have provided avenues to connect foreign investment with leading entrepreneurs and growing local businesses.