Olympic Residence » About Mongolia

Why invest in Mongolia?

bertot — Tue, 08 Dec 2009 02:10:16 +0000

“Over the next decade, Mongolia will have the fastest growing economy in the world in terms of GDP growth, succeeding Qatar, which in percentage terms, although not absolute terms, surpassed that of China in the past decade,” said John Finigan, CEO Golomt Bank

Mongolia is an attractive investment opportunity. In the past five years, foreign direct investment in the country has doubled. This is in large part due to the mining industry as Mongolia is home to large mineral deposits. With an estimated 100 billion metric tons in coal reserves, 3,000 tons of gold, and 62,000 tons of uranium, Mongolia is sitting on a substantial amount of wealth. In October 2009, Mongolia signed the Oyu Tolgoi agreement allowing for the extraction of minerals from one of the largest gold and copper deposits in the world. For many foreign companies, this signals the beginning of significant mineral extraction and wealth creation for the country of Mongolia.

With a booming mining sector and a low population, Mongolia is expected to see economic development such as that experienced by oil-rich Middle Eastern countries. This will mean excellent returns in general for people that invest now into the country.

Ulaanbaatar

bertot — Tue, 08 Dec 2009 02:09:18 +0000

At the beginning of the 21st century, unprecedented economic development turned Ulaanbaatar from a fairly sleepy trading town into a thriving modern metropolis. Due to the very low population density in the rest of the country, Ulaanbaatar is the centre of the country’s economic and industrial growth. To illustrate, 50% of Mongolia’s gross domestic product (GDP) of $1.5 billion and 30% of the country’s industrial output is attributed to economic activities in Ulaanbaatar.

The strong growth in Mongolia has not gone unnoticed by sophisticated property investors, who have recently started investing in Ulaanbaatar property developments. During the past few years, apartment prices per square meter have grown by approximately 18-27%. The growth looks set to continue over the next decade as the resource boom, led by gold discoveries continues to develop. Low taxes, high asset appreciation, and high rental yields create opportunities for significantly higher return on investment than those available in more developed markets.

Mongolia

bertot — Tue, 08 Dec 2009 02:08:35 +0000

Mongolia has grown enormously with one of the higher GDP growth rates in the world. Growth was 10.6% in 2004, 5.5% in 2005, 8.6% in 2006, and 9% in 2007 largely because of high copper prices and new gold production (GDP growth courtesy of the IMF).

With the government signing of the Oyu Tolgoi agreement, an agreement that governed the extraction of the largest untapped copper and gold reserve in the world, it is likely that this growth will continue. FDI is pouring in from companies Ivanhoe and Rio Tinto to extract the minerals. These investments, coupled with the revenues, are expected to greatly bolster the local economy.

But gold and copper are only the beginning of the mining story. Mongolia is estimated to have potential coal reserves of 125 billion metric tons with a significant portion located at the Tavan Tolgoi mine in the southern Gobi. With China purchasing up to 22 million tons of coal per month, Mongolia will likely have a long-term customer to the south. Foreign Direct Investment has grown at an explosive rate from US$25m in 1997 to US$344m in 2006. A large proportion of FDI has been channeled into the construction and mining industries, which are currently experiencing rapid growth.