This chapter outlines the Mongolian legal environment, focusing on changes that include a new Investment Law, Petroleum Law and an amendment to the Minerals Law that is expected to boost FDI. It also contains a viewpoint from David Beckstead, Foreign Legal Consultant at Lehman, Lee & Xu.
Given the significant foreign direct investment needed to achieve its development goals, Mongolia has strong motivation to improve its attractiveness to investors. The government is therefore adjusting its policies, while new laws are expected to gradually reinvigorate foreign investment flows.
With the dramatic decrease of foreign direct investment (FDI) over the past year or so, Mongolia’s lawmakers have done much – including consulting with various stakeholders – to kick-start the economy. A number of new laws and regulations have been passed in the hope of creating a legal framework that will be more appealing to foreign investors.
Throughout 2014 there was a continuation of the drastic decline of foreign direct investment (FDI) in Mongolia, a shift that began in early 2013. With global commodity prices remaining low, and the dispute between the Mongolian government and Rio Tinto over the Oyu Tolgoi copper and gold mine ongoing, an economic recovery does not seem likely in the short term. However,...
Given the significant foreign direct investment needed to achieve its development goals, Mongolia has strong motivation to improve its attractiveness to investors. The government is therefore adjusting its policies, while new laws are expected to gradually reinvigorate foreign investment flows.
As may be expected in a fast-growing emerging market, Mongolia’s legal framework – like many other aspects of Mongolian society – is in a constant state of flux. At first blush, since foreign investors tend to crave legal certainty, this would appear to be a weakness of the country’s legal system. However, investors should take comfort in the fact...
I am often asked by foreign investors about my perception of Mongolia’s economic prospects. In the short term, there are a number of hurdles that need to be overcome in order to improve the country’s legal framework and facilitate greater economic activity. Over the long run, however, there seems to be a strong political will to continue...
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