Mongolia provides attractive conditions for investors and is working in the right direction. Attention should be given to lowering the current restrictions on FDI and enhancing the respect for property rights.
The risk of unpredictable policy and regulatory change continues to be lower compared to discrimination between foreign and domestic investors and breach of State obligations. The three risk areas are on the same level as last year.
Mongolia has a good performance on three EIRA indicators and a moderate performance on one indicator. Foresight of policy and regulatory change has maintained the highest score with 75 points. On management of decision-making processes and rule of law, it has received 73 and 65 points, respectively. The score for regulatory environment and investment conditions stands at 53.
On a more detailed level, Mongolia’s overall sub-indicator performance is good. Institutional governance is once again the highest-scoring sub-indicator with 88 points. The country has retained its scores from 2018 on management and settlement of investor-State disputes (80), communication of vision and policies (77), robustness of policy goals and commitments (72), transparency (58) and regulatory effectiveness (56). Restrictions on FDI and respect for property rights continue to be the lowest-scoring sub-indicators with 50 points each.