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March 2014

Insurance Landscape 2013

Compared to what it has been over 20 years ago, insurance sector in Mongolia has undergone an significant transformation. From just one state owned insurance company, it grew to an industry with a great number of players and annual gross revenue of MNT 93 billion at the end of 2013.

Featured Analysis

Insurance Landscape 2013 March 2014

Insurance Landscape 2013...

Compared to what it has been over 20 years ago, insurance sector in Mongolia has undergone an significant transformation. From just one state owned insurance company, it grew to an industry with a great number of players and annual gross revenue of MNT 93 billion at the end of 2013.

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How Mongolia will perform in 2014? January 2014

How Mongolia will perform in 2014?...

In our semi-annual update for 2013 in July we wrote that while first half of 2013 went through in overall atmosphere of action, change and optimism, these sentiments were not always justified and supported by fundamental economic health. As expected, 2013 year end performance was not that strong. Nonetheless, economy could show two digit growth which is among the highest around the world.

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Overview of the Investment Funds Law November 2013

Overview of the Investment Funds Law...

Early October this year, the Parliament of Mongolia has approved the first ever Investment Funds Law (IFL). This went relatively unnoticed, as all attention at the time was focused on Investment Law. Nonetheless, it should be noted that the IFL is of great importance to the future of Mongolia’s economic growth and financial sector development. The IFL establishes a fundamental basis to lead the soft infrastructure of financial markets into the right direction.

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Report Archive
Insurance Landscape 2013 March 2014

Insurance Landscape 2013...

Compared to what it has been over 20 years ago, insurance sector in Mongolia has undergone an significant transformation. From just one state owned insurance company, it grew to an industry with a great number of players and annual gross revenue of MNT 93 billion at the end of 2013.

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How Mongolia will perform in 2014? January 2014

How Mongolia will perform in 2014?...

In our semi-annual update for 2013 in July we wrote that while first half of 2013 went through in overall atmosphere of action, change and optimism, these sentiments were not always justified and supported by fundamental economic health. As expected, 2013 year end performance was not that strong. Nonetheless, economy could show two digit growth which is among the highest around the world.

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Overview of the Investment Funds Law November 2013

Overview of the Investment Funds Law...

Early October this year, the Parliament of Mongolia has approved the first ever Investment Funds Law (IFL). This went relatively unnoticed, as all attention at the time was focused on Investment Law. Nonetheless, it should be noted that the IFL is of great importance to the future of Mongolia’s economic growth and financial sector development. The IFL establishes a fundamental basis to lead the soft infrastructure of financial markets into the right direction.

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TRAILBLAZING INVESTMENT IN MONGOLIA May 2013

TRAILBLAZING INVESTMENT IN MONGOLIA...

A small but innovative insurance company helps Mongolia prepare for a prosperous future. Walk along the bustling streets of Mongolia’s Capital, Ulan-Bator, and you can’t help but sense the optimism in the air. As international investors eye Mongolia’s trillions of dollars worth of untapped mineral wealth, a local company, Mandal Insurance, is almost single-handedly transforming Mongolia’s insurance and risk management industry into a world-class service.

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Where development solution should start from? April 2013

Where development solution should start from?...

There are a number of studies, discussions, policies and programmes over Mongolia’s development strategies. While the country’s economic growth was relatively good compared with the global average during the recent years, the paradox of this growth remains to be persistent high poverty level. This situation raises several questions such as whether Mongolian people can benefit from the economic growth, how long the current development model can be sustained, and whether there are better solutions.

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Monthly Market Update April 2013

Monthly Market Update...

Annual inflation rate reached a single digit level at 9.8%. Same period last year annual inflation stood at 17.3%, meaning base level was quite high making it easier to drive inflation down to a single digit. In the coming months, it is likely to remain at single digits as April-October inflation rates last year stayed high.

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Mongolia Risk Report 2013: Traffic Accident Risk April 2013

Mongolia Risk Report 2013: Traffic Accident Risk...

A modern road network was first laid out in 1929 in Mongolia. Back then, only 20 vehicles were registered. The number of vehicles grew since then to 121 in 1931, 928 in 1940, 10’835 in 1960 and 103’805 in 2002. In 2012 345’473 motor vehicles were registered nationwide. Having one car per every 8 citizens puts Mongolia slightly above the world average in terms of number of motor vehicles per 1’000 persons.

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Mongolia Risk Report 2013: Macroeconomic risk April 2013

Mongolia Risk Report 2013: Macroeconomic risk...

Macroeconomic risks can have multiple factors. However in case of Mongolia, based on the previous crises it can be concluded that very few factors play a crucial role and put a pressure on people and businesses. As for 2013, key risks for economic crisis are linked to global prices of major export commodities and to international economic environment. Additionally, we have covered market volatility and price movements.

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Mongolia Risk Report 2013: Contagious Desease March 2013

Mongolia Risk Report 2013: Contagious Desease...

Although Mongolia ranks number one in the world in terms of land size per capita, nearly half of the 2.8 million population lives in Ulaanbaatar, capital city of Mongolia. According to World Bank approximately 70 percent of the city’s soil has been polluted by various types of bacteria and the level of air pollution is 20 times more than the internationally acceptable levels. In this environment, the risk of contagious disease could be high.

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Mongolia Risk Report 2013: Industrial Accident March 2013

Mongolia Risk Report 2013: Industrial Accident...

In this period of accelerated economic growth based on mining sector, loss of health caused by Industrial accidents and its monetary cost have been on the rise significantly. For example, we all know of the incident in September 2012 that resulted in two children’s death caused by the constructor’s liability.

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Mongolia Risk Report 2013: Crime March 2013

Mongolia Risk Report 2013: Crime...

During the last 10 years, 7 thousand homicides had occurred and over 40 thousand people were injured from criminal offences.

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Mongolia Risk Report 2013: Risk of Freezing March 2013

Mongolia Risk Report 2013: Risk of Freezing...

 

There is an existing disastrous risk of freezing entire city’s heating infrastructure if there is serious incident happens in the Power Plant #4 between the periods of 2013 to 2015, which may danger well-being to the people of UB. The alarming fact is that there is no existing emergency plan if such disaster struck to the city.

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Mongolia Risk Report 2013: Earthquake March 2013

Mongolia Risk Report 2013: Earthquake...

Mongolia is located in a medium earthquake risk zone. This risk report is based on our assessments of potential resources during aftermath emergency, analysis of Ulaanbaatar city building structures, statistics from Earthquake Research Sector and World earthquake statistics.

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Mongolia Risk Report 2013: Air Pollution Risk March 2013

Mongolia Risk Report 2013: Air Pollution Risk...

Almost half of the Mongolian population currently lives in Ulaanbaatar city, one of the most polluted city in the world. Such toxic air pollutants as carbon dioxide, cadmium, lead, mercury, dioxin, chromium, beryllium, and nickel compounds are generated through over 200,000 chimneys, 229,000 motor vehicles, and via other heavy industries that are not suitable to be operated within the city.

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How Mongolia will perform in 2013? January 2013

How Mongolia will perform in 2013?...

Around 5 percentage points decline in annual GDP growth might sound like a death sentence for some economies, however it is not the case for Mongolia. Even with this decline economy of Mongolia grew 12.3% in 2012 which places the country among top performers straight away.  In these circumstances, rightful questions arise as to how solid this growth is, what factors influenced the downward move, and whether the economy can beat itself in 2013.

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Residential Property Market November 2012

Residential Property Market...

Residential property market of Ulaanbaatar has not seen big shifts compared to economical growth of economy itself. While the most demanding addresses have shown big marginal price growth secondary market for old soviet apartments in down town area is still the most liquid ones.

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Monetary Policy of Mongolia: Will it Finally Hit its Targets in 2013? November 2012

Monetary Policy of Mongolia: Will it Finally Hit its Targets in 2013?...

The Bank of Mongolia has been criticized for several years now for not being able to pursue monetary policies that had effective results. Undeniably, policy targets proposed within the monetary policy, especially with regard to inflation rate were rarely met in the past.

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Retail Property Market November 2012

Retail Property Market...

For the past year property prices on retail market constantly appreciated. We can highlight high price appreciation on ground floor retail spaces of the following areas: State Department Store, Seoul Street and Small ring road. On the above mentioned areas property prices appreciated by 25% on average in 2011and by Q2 of 2012 it has appreciated by 30%.

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Is Mongolia Ready for Private Equity? November 2012

Is Mongolia Ready for Private Equity?...

Several months ago I attended an event in Washington DC on private equity investment in emerging markets. Quite a number of funds and investors attended, they talked a lot about investing in emerging counties like Nigeria, Chile, Cambodia, China and others across Asia, Africa, and Latin America. It was an unpleasant revelation that Mongolia wasn’t even mentioned as a possible destination for PE investments. Then I asked myself, where Mongolia stands in an investment world, if it is not an emerging, is it then a frontier market, or an exotic market, is it an outlier? Is Mongolia ready for private equity?

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USDMNT | 5 Reasons for 5 Reasons for Appreciation November 2012

USDMNT | 5 Reasons for 5 Reasons for Appreciation...

Conventional wisdom stops working when it comes down to USDMNT. Trade balance deficit, volatile capital inflows, budget deficit and irrepressible consumer demand (that had been artificially kept low since communist times) and inflation differential all seems to collude against consumption gap now. 

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New Crisis November 2012

New Crisis...

This summer, a very familiar economic situation had (re)emerged in Mongolia. High inflation, tight liquidity, nose diving MNT, trade deficit coupled with budget deficit and falling foreign investments all sound very familiar. Yet there is one major factor that is fundamentally different. During the 2008-2009 global financial crisis, Mongolia was lucky to be next to China, the savior of the world that time. But this time the exact crisis can actually emerge from China itself.

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Commercial Office Market Update November 2012

Commercial Office Market Update...

As of Q2 2012, office market in Ulaanbaatar city is lacks modern office properties. Due to supply shortage newly built offices are fully occupied. There has also been an encouraging level of activity from new tenants especially newly establishing businesses that wish to serve and leverage from upcoming mining boom.

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Can We Enforce Foreign Investment Regulation Law November 2012

Can We Enforce Foreign Investment Regulation Law...

Mongolia had foreign investment law, but never foreign investment restriction law. And as we were able to form favorable environment, Mongolia could increase FDI inflow continuously. As a result, Mongolia could lay grounds for development of mining sector, which in turn served a catalytic role in national economic growth. 

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Does growing number of vehicles have impact on rise of traffic collision rate? October 2012

Does growing number of vehicles have impact on rise of traffic collision rate?...

The increase of imported vehicles indicates rapid growth of society, economy and demands of our lives.  According to auto inspection data, 20 vehicles were registered in the country in 1929. But the number has reached 43,492 vehicles in 1990, after the transaction to market economy, and then it increased to 161,989 in 2007 and in 2011 there were 312,542 vehicles registered.

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