Oxford Business Group THE INSIDE EDGE

Mongolia’s Short and Medium Term Investment Advantages

Paulius Kuncinas, Regional Editor, Asia

•Compelling Investment Proposition

•Extremely Risk Averse Investment Environment

Key Findings:

Oxford Business Group THE INSIDE EDGE

•Extremely Risk Averse Investment Environment

•Key Risk is Dutch Disease – Overeliance on Resources

•Risk is manageable

•Diversification – an urgent priority

What sets Mongolia Apart?

• Late Blossom Commodity Story

• Strong Regional Demand

• Democratic Institutions

Oxford Business Group THE INSIDE EDGE

• Democratic Institutions

• Fast Income Growth

• Pent Up Domestic Demand

Downside Risks

• Boom-Bust Cycles

• Procyclical policies

• Commodity Price Volatility

• Inflation is the main Risk

• Mongolia’s politicians are

entering into a new social

contract with its population

Oxford Business Group THE INSIDE EDGE

• Commodity Price Volatility

• Inflation

• Geopolitics Challenges

• The risk is of repeating the

mistakes of crowding out

private sector and creating a

paternalist state

Lessons from Asia

• Mongolia - Unique Asian Growth Story

• Brunei bears some resemblence

Oxford Business Group THE INSIDE EDGE

• Malaysia offers some lessons

• Papua New Guinea (PNG) same cycle

Diversify Where? Low Hanging Fruits

• Play to Strengths – Agriculture

• Tourism – Vast Potential

• Land intensive industries

Oxford Business Group THE INSIDE EDGE

• Land intensive industries

• Renewable Energy

• Data Storage

• Transit logistics

Oxford Business Group THE INSIDE EDGE

Mongolia: Report 2012

Launch March 1st, 2012, Ulaanbaatar

Oxford Business Group THE INSIDE EDGE

THANK YOU!