Mongolia’s economic growth remains heavily reliant on the mining sector and foreign direct investment (FDI). Between 1990 and 2024, the country attracted $48.11 billion in FDI, with over 70% directed toward mining. Since the launch of investments in the Oyu Tolgoi project in 2010, the mine has accounted for nearly half of all foreign investment in Mongolia’s mining industry. As of Q3 2024, 81% of foreign direct investment (FDI) has been directed towards the mining sector.

Research from the University of Finance and Economics of Mongolia estimates that a 1% increase in FDI drives a 0.76% long-term GDP growth, with 0.22 percentage points directly attributed to investments in Oyu Tolgoi.

To facilitate foreign investment, Mongolia has established the Investment and Trade Agency, which operates a One-Stop Service Center to assist investors. Investment regulations were initially governed by the Law on Foreign Investment (1993) before being replaced by the Investment Law (2013), which provides equal rights for foreign and domestic investors, offering tax incentives and stability agreements for large-scale projects.

The Mongolian government has undertaken reforms to improve the investment climate, including simplifying permitting and licensing processes, reducing bureaucracy, and enhancing transparency. Further initiatives focus on streamlining registration, visa, and residency procedures, ensuring investment stability, and strengthening legal protections for investors. These measures aim to attract and retain foreign capital while fostering long-term economic growth.

In line with these goals, the government is in the process of drafting a new Law on Foreign Investment to replace the current Investment Law. As of February 2025, the draft law is under public consultation. The proposed law aims to incorporate the following principles: