Here we go!

Welcome to the very first edition of our newsletter! 😎

We're thrilled to provide you with the necessary market intelligence and insight into Mongolia's economy. The newsletter will be delivered weekly into your inbox, and if you have any questions or comments they are always more than welcome.

Let's dive in! 🔓

  📌 DID YOU KNOW?

First and foremost, here are some fun and useful facts for you: 

• Mongolia is one of the few places in the world where the rare two-humped camels live. Wanna see how they race?

• We have 52 brokerage firms, which is a lot ...

• Mongolians casually invested $200 million into local cryptocurrencies in Q4, 2021.

• Our Stock Exchange Top-20 index grew 130.3% in 2021. Yup, that's definitely more than your portfolio growth :)

  🔥 PREVIOUSLY, LOCAL STOCK MARKET 

In 2021, the Mongolian stock market grew more than any other market in the world. While it is still comparably very small, the potential for growth is much higher than you may imagine.

By the numbers:

• Total market capitalization went over $2.1 billion for the first time after 97% growth in 2021, and that's with the Market Cap to GDP ratio standing at only around 15%.

• A major issue for the MSE has always been liquidity. However, last year there was an absolutely mind-boggling 20-fold increase in the total trading volume (almost $500 mill).

Crazy numbers, right? Well, what's more crazy is that this insane growth can probably be sustained. Reasons:

More retail and institutional investors: There are now as many as two mutual investment funds in Mongolia, which were launched within the short period of the last two years. On top of that, the average number of daily traders on the MSE has increased 5 times in 2021. Both of these developments show that Mongolians are becoming comfortable with investing, as they get to know the market more.

Upcoming banking sector reform: Up until the recent Bogd Bank IPO, not a single bank was listed on the MSE. Thanks to the new banking law, though, systematically important big commercial banks are now required to become public companies before July 2022.

So, it definitely looks like a good investment opportunity, huh? 

But then, of course, you think, what are the risks? What about regulations? Which companies to invest in? How do I open a bank account? What should I even begin with? The questions may never end.

But, hey, that's why we are launching this newsletter. Obviously, we can't guide you through the whole process with just one edition, though, if you stick to us and keep up with each release, you'll find all the answers to all of your questions. ✌

📢 HOLIDAY: LUNAR NEW YEAR

As you may already know, the Lunar New Year is not exactly Chinese New Year. Mongolia is one of many countries in the world that hold these celebrations, and, of course, we have our own unique traditions. 

The White Moon is coming!

The Mongolian Lunar New Year is called Tsagaan Sar, which literally means “White Moon”. This year it will start on the 2nd of February, so if you want to impress your Mongolian friends we have a few recommendations on what to do. 

• 👕 Get in a “deel”. Deel is our national costume and a must for Lunar New Year. If you don’t wear it, you’ll be the black sheep in the crowd.

• 🗣️ Don’t say “Hi!”. Say “Amar baina uu?” instead. This is specifically used during Tsagaan Sar and translates to “Are you living peacefully?”

• 🐯 Buy a tiger: Well, 2022 is the Year of the Tiger, what can we say? Don't buy the real one, though.

By the way, due to Covid-19 restrictions, we won't be able to celebrate Tsagaan Sar the usual way this year. So, if you happen to be in Mongolia when the whole coronavirus situation gets better, don't forget about these:

• 🙏 Do the “zolgokh”. “Zolgokh” is a traditional form of greeting where both people hold out their arms with the younger placing theirs under the other’s and holding the elder’s elbows to show support.

• 👋 Invite your friends over. It’s not a tradition per se to celebrate Tsagaan Sar with your friends, but it’s become very common lately. Don’t forget to prepare gifts and lots of food!

Regardless of whether you follow our tips or not, do remember that the most important thing you gotta do is just enjoy the holidays along with everybody else. Eat well, stay warm, and embrace the culture.

✈ TRAVEL INDUSTRY 

From the royal legacy of the Mongol Empire to the modern interpretations of nomadic culture - travelling in Mongolia is all about choosing what fits best for you. But be it the Gobi Desert, the Khuvsgul Lake, or whatever that could interest the curious mind of a tourist, everything has pretty much been off the grid for the past two years.

The pandemic hit hard.

As obvious as it seems, the attention these natural landmarks and other sightseeing attractions should be receiving was and is being surreptitiously stolen by Covid-19. The borders are open now, but the dramatically decreased number of foreigners visiting the country has yet to resuscitate its pre-pandemic momentum.

Coronavirus - the impetus killer:

• Travelers: In 2019 the number of incoming foreigners hit its all-time high, reaching 637 thousand. 2021, conversely, saw a record low number since 1984 with only 39 thousand international visitors.

• Revenue: The same is the situation with the tourist industry’s revenue: the lucrative 2019, which brought as much as $607.2 million into the economy, was overtaken by the plunge of the following two years. In 2020 the revenue dropped more than 90%.

It’s not the end!

Yup, the pandemic seriously derailed the tourism sector, but there’s still ground for some positivity. Our PM, who mentioned that Mongolia has the potential of accommodating as much as 400 million tourists, might have been not so wrong, if we see the bigger picture.

After all:

• The field is still nascent: The tourism industry in Mongolia started to flourish only after the collapse of the Soviet Union back in the 1990. Since then, it had been continuously exceeding its targets until Covid-19 struck.

• It’s a bane, not a boon: Experts say that it’s important to see the coronavirus situation as an opportunity, not as an irreversible curse. As a result of this ‘reboot’, low-performing companies are leaving the battlefield, creating room for new players. 

• The Government's granting support: In 2020 the tourism sector was declared one of the most important industries of the country. Business owners were granted low-interest loans, discounts on operational costs, and social insurance taxes.

In the end, there’s always sunshine after the rain, and if you’re up to enjoying the sunny days in Mongolia as a tourist, or maybe even as a travel entrepreneur, it’s probably better to take action as soon as possible. That is, of course, unless you like crowds, or high competition.

🏃 QUICK STORIES

📌 Finally, Oyu Tolgoi partners reach a comprehensive agreement and approve the commencement of underground mining operations. This is a huge event for Mongolians and other foreign investors. The copper-gold mine has been and will be a huge booster for the Mongolian economy. By 2030, OT is expected to be the 4th largest copper mine in the world. 

📌 Mongolia’s unique culture showcased at Expo 2020 in Dubai. A rare opportunity to experience the wonders of nomadic heritage: from traditional throat singing to puzzle games and riddles. 

📌 “Treasures from Taiwan” open to the public until January 29. The exhibition features original portraits of 8 Mongolian Khaans and 8 queen consorts. The artworks were provided by the National Palace Museum of Taiwan where they’d previously been preserved.

📌 Meeting held in preparation for Mongolia-U.S. direct flights. The online meeting between responsible parties was one of the series of talks that began a few years ago. The main topic of the agenda was the legal framework necessary for the flights to be viable.

👗 GOBI CASHMERE

Too cold to have fun? 

GOBI's got your back this winter! As the top producer of high-quality cashmere in the world, GOBI will give you that warm fuzzy feeling everybody craves, quite literally.

Make it to the winter sale! Up to 60% off! 

📷 A GLIMPSE OF MONGOLIA

About: Ulaagchiin Khar Lake, one of the most famous lakes in Mongolia, is a strictly protected area located in the western plateau of Khangai Mountain Range. Offering both sandy dunes and emerald blue waters, it is truly a unique mix of beautyExplore: See the surrounding areas on Google Maps. 

For more: The photo was provided by our partner artist Erdenebulgan, whose breathtaking sceneries are available on Facebook and Instagram.

ESSENTIAL LINKS

• General guidelines on how to invest in Mongolia. (Guidebook)

• How to get a VISA? (Visa Guide)

• Listen to some rad music! (the HU)

• Hungry, but on a diet? We've got you, subscribe to this channel. (ArtGer)