West Midland firms told to look at Mongolia for new export opportunities

FIRMS in the West Midlands have been urged to consider Mongolia as a new trading partner.

Jonathan Webber, Head of UKTI’s International Trade team Birmingham said the recent visit by William Hague to the country had highlighted its potential.

“There are many reasons why the world is suddenly waking up to the opportunities that abound in Mongolia and why West Midlands companies need to make sure they don’t lose out,” he said.

“For starters, Mongolia is expected to be the fastest growing economy in the world over the next two decades, with GDP per capita looking like it will more than quadruple by 2020. In 2012 it grew by 12.3% and in 2013 it’s expected to grow by up to 12%, potentially doubling in 2014.”

UKTI is holding an ‘Explore Mongolia seminar at Edgbaston Stadium, Birmingham on Thursday November 14, as part of a series of events organised for Export Week (November 11-15).  

Contributing to the seminar will be a variety of experts from the British Embassy, Ulaanbaatar (Mongolia’s capital), the Mongolian Embassy, London and UKTI West Midlands.

As well as advice for doing business in Mongolia, firms attending the event will learn why rapid growth – largely in the mining sector – has led analysts to christen Mongolia the ‘Wolf Economy’.

Some of the largest untapped gold, copper and coal deposits in the world have been discovered in the country.

Mongolia also has the world’s largest copper reserves, the second-largest coal reserves, significant onshore oil and gas fields, vast gold and iron ore reserves, and many other enormously significant deposits of minerals ranging from uranium to tungsten and zinc.

“Put simply, Mongolia’s minerals will provide the world with supplies of many of its most valuable raw minerals for the rest of this century,” added Webber.

The mining sector expansion is expected to have a strong multiplier effect on the wider economy in the years ahead.  Raw and processed products will need to be transported from some relatively inaccessible areas to the global markets.

In addition, Mongolia already has a young, well-educated population, and a vibrant democracy with a pro-Western outlook – English is Mongolia’s official second language.

Massive infrastructure projects are being planned to support the 2.9m Mongolian population.

As in other areas of Asia, high-quality imported consumer goods are increasingly popular and this demand is expected to increase rapidly in the years ahead.

West Midlands businesses have been advised to focus on the agriculture, construction, professional, financial and business services, education and tourism sectors for new opportunities.

The Mongolia seminar is designed to provide firms with briefing on the country’s business climate and opportunities. UKTI will also be leading a trade visit to Ulaanbaatar in March 2014 and further details on how to participate will be available at the event.

Further details on the event are available by visiting http://www.exportweek.ukti.gov.uk/full