Why Mongolia Is Your Next Big Investment Frontier

Discover why Mongolia is becoming one of Asia’s most promising investment destinations.

With rich natural resources, a strategic location between major markets, and a government open to foreign investment, Mongolia offers exciting opportunities in mining, infrastructure, renewable energy, agriculture, and tech. Whether you’re looking to launch a new venture or expand your global presence, Mongolia is a land of untapped potential ready for smart, forward-thinking investors.

Your Gateway to a Strategic and Growing Market

Mongolia is emerging as an increasingly attractive destination for foreign direct investment, particularly in sectors such as mining, agriculture, renewable energy, and technology. With its strategic location between China and Russia, a growing commitment to economic liberalization, and rich natural resources, Mongolia offers compelling opportunities for international investors seeking high-potential frontier markets.

INVESTMENT CLIMATE

As a frontier market with vast mineral reserves, Mongolia presents a wealth of untapped opportunities. The country imposes minimal market-access barriers, with relatively few investment restrictions, enabling foreign investors to enter and operate in most sectors with ease.

Success stories—ranging from fast-food franchises to convenience stores—demonstrate the viability of adapting international business models to the Mongolian market. High-potential sectors such as cashmere and textile manufacturing, agriculture, and renewables also continue to gain momentum.

That said, investors should be cautious when entering politically sensitive sectors, such as mining, where risks can be higher due to regulatory changes and national interest considerations.

POLICIES TOWARDS FOREIGN DIRECT INVESTMENT

Mongolia maintains an overall non-discriminatory approach toward foreign investors, with two notable exceptions:

  1. Minimum Investment Requirement: Foreign investors must commit at least USD 100,000 when establishing a company—this requirement does not apply to Mongolian nationals.
  2. Land Ownership Restrictions: Only Mongolian adult citizens may own land. While foreign entities may acquire land-use rights, these are typically granted for five years, with a one-time extension of an additional five years.

To support investment, the government offers a centralized support service through its “One-Stop Shop for Investors”, which assists with:

  • Business registration
  • Taxation
  • Notarization
  • Visas and residence permits

LIMITS ON FOREIGN CONTROL & PROPERTY OWNERSHIP

Apart from land ownership, foreign and domestic investors enjoy equal rights when it comes to establishing, owning, selling, or transferring:

  • Movable property
  • Company shares
  • Use rights and structures

There are no general statutory restrictions on foreign ownership or control, except for foreign state-owned entities (SOEs). According to the Law on Investment, foreign SOEs seeking to invest in strategic sectors—namely mining, banking, and telecommunications—are subject to national security review by the Ministry of Economy and Development, although the criteria for this review remain broadly defined.

INVESTMENT POLICY REVIEWS & TRANSPARENCY INITIATIVES

Mongolia continues to engage with international transparency and governance frameworks:

  • It underwent a World Trade Organization (WTO) Trade Policy Review in 2021
  • The Extractive Industries Transparency Initiative (EITI) published its 16th Reconciliation Report on Mongolia’s mining and petroleum sectors in December 2022
    • This report outlines the legal framework, regulatory policies, and the level of state involvement in extractive industries
    • View the full report here

BUSINESS FACILITATION & COMPANY REGISTRATION

Mongolia offers a relatively straightforward and transparent business registration process, with most services available online. All entities must register through the Legal Entities Registration Office (LERO) of the State Registration Office:
👉 https://burtgel.gov.mn

Next steps after registration:

While business incorporation is relatively quick and efficient, business dissolution remains bureaucratically complex. Reports from foreign investors indicate that closure procedures can take 18 to 24 months, due to legal and regulatory formalities.

Conclusion

Mongolia offers significant promise for investors looking to enter a dynamic and resource-rich frontier economy. While the regulatory environment is improving, due diligence and sector-specific guidance remain essential. With the right support and understanding of the local context, Mongolia can serve as a strategic base for growth in Asia and beyond.