Mongolia at a glance

Brief facts

Source: National Statistics office

Introduction

Welcome to Invest Mongolia, your gateway to one of the most dynamic and promising investment destinations in the world. Mongolia, nestled between Russia and China, is a landlocked gem that has recently emerged as a beacon of opportunity for global investors.

This captivating nation is undergoing a rapid transformation, evolving into one of the world’s fastest-growing economies, primarily driven by its abundant mineral resources and a vibrant economic landscape. Mongolia’s remarkable economic ascent has captured the attention of investors from around the globe, and our platform is your essential tool for tapping into the vast potential of this once-overlooked corner of Asia.

What distinguishes Mongolia is not only its wealth of natural resources but also its thriving and outward-looking business community. Supported by a robust democratic government, Mongolia is unwavering in its commitment to creating an investment-friendly environment that fosters growth and prosperity. As living standards rise across the country at an impressive pace, the possibilities for investors to participate in this transformative journey are limitless.

Mongolia’s extensive landmass, spanning a territory comparable in size to both Western and Central Europe combined, presents a unique canvas for investment ventures. What makes it even more intriguing is its relatively sparse population, with approximately three and a half million people. This population distribution creates a wealth of opportunities for innovative investments across various sectors.

Embark on a journey with us to explore the rich tapestry of investment prospects that Mongolia has to offer. Whether you are a seasoned investor seeking new horizons or a newcomer looking for a promising opportunity, Invest Mongolia is your trusted partner in navigating the thriving landscape of Mongolian investment.

Geography and climate

Mongolia, situated between Russia and China, encompasses a vast expanse of 1.5 million square kilometers, ranking as the nineteenth-largest country globally and the second largest among landlocked nations. For administrative purposes, the territory is divided into three cities and twenty-one provinces known as “aimags.” The focal point of population concentration is the capital, Ulaanbaatar, which is home to approximately 1.4 million residents. However, Ulaanbaatar grapples with a pronounced shortage of urban housing, creating a significant disparity between its cosmopolitan ambiance and the remote rural lifestyles found in smaller communities.

Mongolia is located on a plateau, far removed from any oceans, boasting an average elevation of 1,500 meters. This unique geographical position gives rise to an extreme continental climate, characterized by substantial variations across the country and between seasons. Generally, the eastern part of the country features lower elevations, gradually ascending to the Altai Mountain range in the west. The highest point in Mongolia is a mountain peak marking the western border, shared with Russia and China.

Traveling from north to south reveals a dramatic shift in landscapes, transitioning from Siberian forests and lakes in the north to expansive steppe grasslands and mountains, and finally culminating in the arid Gobi Desert in the south. Mongolia experiences long, harsh winters and short, warm summers. Winters are dry, and summer rainfall rarely surpasses 380mm in mountainous areas, dropping to less than 50mm in desert regions.

In Ulaanbaatar, temperatures can frequently soar above +30 degrees Celsius from mid-June to mid-August, but can just as easily plummet to below -30 degrees Celsius during the winter months, making it the coldest capital in the world. Spring and autumn are unpredictable, with snowfall occurring as early as June or as late as August. However, bursts of warm weather can also occur as early as April and as late as October.

Political system

Mongolia operates as a parliamentary democracy, with key leadership positions held by the President, Prime Minister, and Government Ministers. The principal legislative body, known as the State Great Khural, comprises 76 members who are elected through a first-past-the-post system. Parliamentary elections are conducted every four years, followed by presidential elections in the subsequent year.

Since the early 1990s, the principal political parties in Mongolia have been the Mongolian People’s Party (MPP) and the Democratic Party (DP). The MPP, formerly known as the Mongolian People’s Revolutionary Party (MPRP), had been the ruling party during the socialist era. The current party using the MPRP name emerged as a breakaway faction from the MPP and adopted its current name in 2010.

In the parliamentary elections held on June 24, 2020, Mongolians elected 76 members to represent them. The MPP secured another substantial victory, capturing 62 seats, a slight reduction from the 65 seats they held in 2016. Nevertheless, the 62 seats they currently hold constitute a commanding supermajority in the 76-member parliament. The remaining seats were distributed among other parties, including the Democratic Party (DP) with 11 seats, the MPRP with one seat (as part of the “Our Coalition”), the National Labor Party (KhUN) with one seat (as part of the “Right Person Elektorat” coalition), and one seat secured by the former Prime Minister, N. Altankhuyag, who ran as an independent candidate.

History

The concept of the Mongolian state was founded by Genghis Khan (Chinggis Khaan) when he unified disparate nomadic tribes in 1206. By the time he died, the Mongol Empire stretched from Manchuria to the Caspian Sea. His descendants continued to rule the empire and extended the territory to create the largest land empire ever to exist. Gradually this fragmented until in the seventeenth century, the power of the Mongolian kings was weakened and became vulnerable to invasion. In 1636, Inner Mongolia came under the power of the Qing (Manchu’s), followed by Outer Mongolia in 1691. 

When China was experiencing political turmoil in the early twentieth century, Mongolian nationalists took the opportunity to ally themselves with the Soviet Union. In 1924, Outer Mongolia formally announced full independence as the Mongolian People’s Republic (MPR), the world’s second Communist state. The MPR was effectively a client state of the Soviet Union, which heavily influenced internal politics. This included negative impacts such as religious purges in the 1930s and forced collectivization. However, with investment from the Soviet Union, significant infrastructure was put in place and levels of education, healthcare and the economic growth improved. Inner Mongolia remains a province of China today. 

Mongolia underwent a peaceful transition to democracy, electing the first democratic parliament members in July 1990. The new constitution was established in 1992 and the first president elected in 1993.

Population, language and religion

The National Statistical Office has reported that Mongolia’s total population reached 3,278,290 people at the mid of 2020. 43% of the population lives in Ulaanbaatar. The rest of the population lives in smaller towns and villages or are nomadic/semi-nomadic. Mongolians belong predominantly to the Khalkh ethnic group (eighty to 82% of the population, 2010 est.) and there is a significant Kazakh minority of approximately 3.8% of the population, with a very distinct language and culture. The remaining ethnic groups are mostly quite closely related to the Khalkh.

The official language of Mongolia and first language of the vast majority of Mongolian nationals is Khalkh Mongolian (written in the Russian Cyrillic alphabet). However there are other languages and dialects spoken by minority groups, most notably in the province of Bayan-Ulgii, where the Kazakhs are in the majority, and Tuvans also form a significant group. During the socialist period, the first foreign language taught was Russian. However, English is now widely taught and often a requirement to work for international companies. Chinese, Korean, Japanese and German are also popular languages. It should be noted that Mongolians rarely use their family names, identifying themselves instead by a given name and a patronymic.

In Mongolian, the patronymic precedes the given name and is often shown only as an initial – thus Batbold’s son Tumur would be called Batboldin Tumur or B. Tumur. However, many Mongolians working in international environments now put their given name first on English language business cards (i.e. Tumur Batbold). The convention is identical for men and women, and women do not change their names on marriage. Shamanism is the oldest religious tradition in Mongolia and was replaced by Buddhism from the sixteenth century onwards. Under Communism, all religion was suppressed and most temples and monasteries were destroyed. The majority of the population now identifies as Buddhist, with small Shamanist, Christian and Muslim minorities.

Currency

The official currency of Mongolia is the Mongolian Tugrik/Tögrög, denoted as MNT. The Mongolian Tögrög or Tugrik is the official currency of Mongolia. The banknotes are in denominations of 1, 3, 5, 10, 20, 50, 100, 500, 1,000, 5,000, 10,000 and 20,000; coins are in denominations of 20, 50, 100, and 200.This currency is issued by the Central Bank of Mongolia, known as Mongol Bank. For the most up-to-date foreign exchange rates, you can refer to the official website at  https://www.mongolbank.mn/en/currency-rate 

Public holidays

There are seven celebrations in Mongolia for which public holidays are observed. Holidays are generally observed on the actual date but if a holiday falls on the weekend, the government may at its discretion declare an additional day off.

Similarly, where there is only one day between a public holiday and a weekend, there have been instances where a Saturday has been turned into a working day in lieu of the Monday or Friday, allowing employees to take a longer holiday. Typically, there is very short notice of such decisions, so as an employer or business visitor, one should be aware that working hours around holidays may change as little as a week prior. Public holidays may also be granted for events such as general elections.