Ulaanbaatar
Economy

The largest corporations and conglomerates of Mongolia are almost all headquartered in Ulaanbaatar. In 2017 Ulaanbaatar had five billionaires and 90 multimillionaires with net worth above 10 million dollars. Major Mongolian companies include MCS Group, Gatsuurt LLC, Genco, MAK, Altai Trading, Tavan Bogd Group, Mobicom Corporation, Bodi, Shunkhlai, Monnis and Petrovis. While not on the level of multinational corporations, most of these companies are multi-sector conglomerates with far-reaching influence in the country.

Ulaanbaatar (Urga) has been a key location where the economic history and wealth creation of the nation has played out. Unlike the highly mobile dwellings of herders nomadizing between winter and summer pastures, Urga was set up to be a semi-permanent residence of the high lama Zanabazar. It stood in one location (Khoshoo Tsaidam) from 1640 to 1654, an unusually long period of 15 years, before Zanabazar moved it east to the foot of Mount Saridag in the Khentii Mountains. Here he set about building a permanent monastery town with stone buildings. Urga stayed at Mount Saridag for a full 35 years and was indeed assumed to be permanent there when Oirats suddenly invaded the region in 1688 and burnt down the city. With a major part of his life's work destroyed, Zanabazar had to take the mobile portion of Urga and flee to Inner Mongolia.

More than half the wealth created in Urga in the period from 1639 to 1688 is thought to have been lost in 1688. Only in 1701 did Urga return to the region and start a second period of expansion, but it had to remain mobile until the end of the 70-year-long Dzungar-Qing Wars in 1757. After settling down in its current location in 1778, Urga saw sustained economic growth, but most of the wealth went to the Buddhist clergy, nobles as well as the temporary Shanxi merchants based in the eastern and western China-towns of Urga. There were numerous companies called puus (пүүс) and temple treasuries called jas (жас), which functioned as businesses, but none of these survived the Communist period. During the Mongolian People's Republic, private property was only marginally tolerated, while most assets were state-owned. The oldest companies still operating in Ulaanbaatar date to the early MPR. Only the Gandantegchinlen Monastery has been operating non-stop for 205 years (with a 6-year gap during World War II), but whether it can be seen as a business is still debated.

As the main industrial center of Mongolia, Ulaanbaatar produces a variety of consumer goods and is responsible for about two-thirds of Mongolia's total gross domestic product (GDP).

The transition to a market economy in 1990 has so far correlated with an increase in GDP, leading to a shift towards service industries (which now make up 43% of the city's GDP) along with rapid urbanization and population growth.

Mining is the second-largest contributor to Ulaanbaatar's GDP, at 25%. North of the city are several gold mines, including the Boroo Gold Mine, and foreign investment in the sector has allowed for growth and development. However, in light of a noticeable drop in GDP during the financial crisis of 2008, as demand for mining exports dropped, there has been movement towards diversifying the economy.
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