Mongolia’s future economic development is heavily dependent on foreign direct investment.

Mongolia’s future economic development is heavily dependent on foreign direct investment. It has a small economy based on a handful of industries that do not generate enough money and domestic investment needed to transform it from a commodity trading pattern to one based on added-value products. Mongolia’s good legal framework has been the backbone to establishing a business environment that is attractive to long-term investors and financial stability.

According to Robert Friedland, Chairman of Ivanhoe Mines and Mongolia’s largest investor, “Mongolia is a little Asian Kuwait in the making.” Mongolia has had three successful democratic elections, vast natural resources such as copper, coal, gold, silver, zinc, nickel, hydro-carbon, uranium, precious stones, and natural gas. Also, is shares an all important boarder with China—the fastest growing economy of the 21st century. Further, Mongolia has a small and stable population of about 2.7 million people.