Ean Alexander, Managing Director of IARUDI LLC believes there are hurdles that need to be overcome to successfully enter Mongolia, as well as nuances on reporting and compliance.
 
Mongolia is a resource-rich democracy that is constrained by its relatively undeveloped infrastructure network.  Despite recent muted changes to foreign investment laws in Mongolia, IARUDI believes that Mongolian policy supports foreign investment, which is critical to Mongolian growth and development 
 
Undeveloped infrastructure, lack of regulatory transparency, and a shortage of skilled workers are challenges to growth, with Ean viewing human capital as being the biggest issue for any new company’s looking to establish and expand into Mongolia.  For expat workers, the cultural and quality of life issues must be overcome in order to successfully relocate employees for a firm to take advantage of Mongolia’s unique opportunities. Ean highlighted the importance of building local networks, forming local partnerships and spending significant time in country developing your businesses as being a key to success.
 
Ean expects that the next twelve months would see increased spending again in natural resource exploration, increased regulatory certainty following the summer 2012 national elections, and continued M&A as strategic and other natural resource investors look for ways to enter Mongolia. Over the next twenty years,  resource rich Mongolia is predicted to be the world’s fastest growing economy through 2030, at an average annual growth rate of 9.7%, which would place it well in advance of other emerging nations.
 
For further information, please contact:
 
Ean Alexander, IARUDI 
ean.alexander@iarudi.com
 

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