About the market

6 Reasons for the Mongolian marketMongolia

  • Mongolia is the fastest growing country in Asia in the next 5 years (up to 15.3 % p.a.)

  • GDP growth in 2013 (11,7%) ranked No. 6 in the world

  • In 2013 the mining sector had a growth of 19,8 %

  • Industrial output grew by 11% in 2013 (world rank 10)

  • Substantial projects on Infrastructure and Industrialization diversifying the GDP

  • Mongolia aims to become self-sufficient in fossil fuels by 2020

Located in the heart of Asia as link between the important countries Russia and China, Mongolia is the perfect place for international players to make a significant step into this market and to establish business relations there.

Mongolia has transformed itself to a vibrant democracy with a booming economy. Mongolia is still in a major transformation process driven by the exploitation of its vast mineral resources. The share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. GDP is expected to grow at a double digit rate over the period from 2013 to 2017. (Source Worldbank, Bloomberg, Diplomat.com)

Mining

  • Holding approx. 7.42 billion tons of coal, Tavan Tolgoi is considered as the largest undeveloped coking and thermal-coal deposit in the world.  

  • With Oyu Tolgoi, Mongolia is also aware of the world’s largest undeveloped copper (approx. 3.8 billion tones of proven copper) and gold mine (approx. 3.9 million ounces of gold). The agreed solution in 2015 with the Government of Mongolia is an important cornerstone for the Mongolian economy.

Energy

  • Mongolia’s Oil reserves are estimated at 4bn-6bn barrels. The Government aim is to develop and push the extraction of oil in the next years.

  • In terms of renewable energy, Mongolia has an average potential for solar energy of 1400 KWh per sqm per year and 4.3 -4.7 KWh per sqm per day of solar intensity, according to the Ministry of Energy.

  • According to World Energy Council, over-dependence on coal makes Mongolia the world’s 10th most energy-intense and fifth-most carbon-intense economy.

Construction & Infrastructure

  • Mongolia’s steadily urbanizing population requires a steadily development of the construction industry. The construction growth accounted over 10 % of the GDP growth in 2014.

  • Modernizing and expanding Mongolia’s transport links and utilities network is also in the focus. The Government of Mongolia raises investments on railway networks, city transportation systems and road removal.

Agriculture

  • The agriculture sector counted for more than 20 % of the GDP of Mongolia and employed 40% of the labor force in 2014.

  • For decades, Mongolia focused on the agriculture sector due to thousands of hectare of fields and long lasting experiences in stock farming. However, new technologies and sustainable development have played a minor role - A great chance for exporters in the fields of agriculture machinery, equipment, farming etc.