Mongolia business opportunities
Between 2010 and 2011, there was a rapid growth which was primarily due to the mining industry, although several industries were in solid demand, the mining industry and its companies lead the increase and demand for many services that support them directly and indirectly. Since 2011, foreign investment in Mongolia fell from a peak of 4.6 billion USD, down to 768 million USD in 2018 as global coal and copper prices fell, instable foreign investment regulations, costs of shipping coal to China, which is Mongolia’s largest export partner, and consequently, the foreign investors’ interests in Mongolia were discouraged.
To fight against it and re-earn the confidence of its investors back, developments on major mining and transport infrastructure projects are have been ever so important in recent years. Progress in these projects, such as mega-mining projects like Oyu Tolgoi, and IMF Extended Fund Facility and other international donors, which as part of the 5.5 billion USD economic recovery package began to provide funds, which should re-establish growth and increase the foreign investment inflow. The fifth review of the Extended Fund Facility funded by the IMF was concluded in November 2018. Following the completion of the fifth review of its facility, Mongolia was capable to draw USD 26.2 million, totaling USD 218 million in the facility.
