Source: Business Intelligence Middle East                    Date: 09 June, 2011

Mongolia is a star of the past and a potential mega star of the future. The basic story of Mongolia is of a former Soviet satellite that is slowing gaining its confidence and exploiting its undeniable strength of a massive underdeveloped mining industry. Just one example will give you some sense of the potential perspective of the economy and Market.

In 2012 the world’s largest copper mine called Oyu Tolgoi is due to go into production. The output of the mine alone will add a forecast 30% to the GDP of Mongolia. The development of the country continues unabated. The Louis Vuitton store has already opened as a sign of the increasing wealth of at least part of the population. Basic infrastructure is still poor, requiring massive investment; however the potential from the development of the natural resources of base and precious metals, and coal should provide the government with increasing income allowing them to invest in the future. It is however chicken and egg.

Without the investment in infrastructure the mines can't easily get their product to market. Without the mines selling product, taxes can't be raised to fund the investment in infrastructure. Irrespective we expect Mongolia to maintain its position as one of the strongest growing economies in the world for some time to come.