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☹️ Investment Law Stuck for 3 Years as Risks Mount

MSE Launches Liquidity Enhancement Program

May 04, 2026 • Estimated Reading Time: 4 minutes

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Good morning! On May 23, Ulaanbaatar will host its 11th annual marathon, with more than 46,000 runners registered. Major roads across the capital will be closed throughout the day, affecting traffic and public transport. For residents and visitors alike, planning ahead will be essential as the city shifts into race mode. 🏃‍➡️👟 

What’s inside today’s edition…

  • 🤝 MSE Launches Liquidity Enhancement Program

  • 🤖 Can AI Predict Mongolia’s Deadliest Disasters?

  • ☹️ Investment Law Stuck for Three Years as Risks Mount

We’ve got a lot to cover, so let’s get moving. 🐐

MARKET

MNG: Mongolia to host first-ever investment forum in Shanghai on May 27. 

GOV: In the first 4 months of this year, 994 visa violations were recorded, involving 2,340 individuals from 34 countries. 

MSE: Mongolian Stock Exchange signs first market maker agreement with Golomt Capital under liquidity enhancement program

🤕 Can AI Strengthen Mongolia’s Disaster Prevention?

The animals die in a specific order. First the goats, which are small and produce heat poorly. Then the sheep, which are heavier but starve faster once the grass is locked under ice. Then the cattle, then the horses. The camels sometimes survive. The herder watches this happen over weeks, in temperatures that hold at –40°C, on a landscape that has become a white slab from which nothing edible can be extracted.

❄️ A Disaster Accelerating

Dzud was once a once-in-a-decade event. Today, Mongolia faces 6 dzuds within 10 years. Recovery time has collapsed, pastures no longer regenerate, and herds fail to rebuild. Families that lost livestock in 2017 were hit again in 2022 and again in 2023–2024, each time starting from a weaker position. The most recent dzud was the worst in 50 years, wiping out over 7.4 million livestock, roughly 10% of the national herd, and causing up to $1.9 billion in damages across just 5 provinces.

  • Around 70% of herder households were affected, while thousands of families lost the majority of their livelihoods.

📊 The Arithmetic of Catastrophe

Each dzud compounds the previous one, steadily eroding livestock numbers, degrading pasture, and weakening resilience. In an economy of roughly $20 billion, recurring billion-dollar losses are no longer exceptional shocks but a structural burden, disproportionately carried by rural households.

  • 🤖 AI as a Turning Point: Artificial intelligence offers a path from reaction to prediction. By combining satellite data with weather modeling, AI can forecast dzud risks months in advance, track pasture conditions in real time, and identify high-risk zones for early intervention. It can also enable faster, automated insurance responses based on climate triggers, reducing delays that currently leave herders unsupported when it matters most.

  • 🚜 From Response to Prevention: Real change depends on shifting from reactive aid to proactive systems. This means building fodder reserves in vulnerable regions, improving winter logistics access, strengthening livestock insurance, and enforcing sustainable pasture management. At the same time, policies must support herders who choose to transition out of the sector, reducing long-term vulnerability.

Beyond Survival... Mongolians have survived dzud for centuries through mobility and deep environmental knowledge. But today’s dzud is more frequent, more intense, and less forgiving. Survival alone is no longer enough, the challenge now is to anticipate, adapt, and ultimately outsmart it.

⭐ Selected for you

ECONOMY & BUSINESS

  • Bank of Mongolia to Support Commercial Banks Securing Long-Term Foreign Funding. (gogo)

  • Mongolia Approves Jade Gas Appraisal Report for TTCBM Project. (YahooFinance)

  • Hunnu Air’s Airbus Expansion Signals New Travel Opportunities Between Mongolia and Europe. (TTW) 

  • Sendly NBFI JSC Awarded Best Money Transfer Provider in Mongolia 2026. (GlobalBankingFinanceReview) 

  • BC.GAME Esports Signs Mongolian CS2 Rifler Senzu. (PRN)

POLITICS

  • Former President Enkhbayar Appointed to Advisory Committee of Tsinghua’s Institute. (ZMS)

  • Customs Inspector Arrested Due to Bribery. (UBPost)

  • UNDP, GEF, and Government of Mongolia Launch Green and Inclusive Cities Initiative to Transform Urban Development. (UNDP)

  • Mongolia and Uzbekistan to Organize Exhibition for SMEs in Tashkent. (AKIPress)

  • Mongolia Advances Medicines Quality Control with New National Laboratory Project. (ZMS)

CULTURE & LIFESTYLE

☹️ Investment Law Stuck for 3 Years as Risks Mount

The PM has canceled this year’s Mongolia Economic Forum to manage external risks and reinforce budget discipline. Yet the larger issue lies elsewhere. The investment law has remained stalled for nearly 3 years. 

☯ Rhetoric vs. Reality

One of the core aims of the Mongolia Economic Forum is to attract foreign investment. In 2023, the event expanded its reach, drawing senior executives from Rio Tinto, as well as representatives from Goldman Sachs and Morgan Stanley, alongside delegates from 45 organizations. The ability to convene global investors marked a step forward. The lack of follow-through on reforms has since tempered that momentum.

  • 🫏 Execution Gap: At the 2023 forum, policymakers signaled an ambitious reform agenda, promising legal revisions, broader investor support, and new entry points into Mongolia’s banking sector. In practice, progress on amending the Investment Law has stalled.

😧 The Cost of Uncertainty

Efforts to update the 2013 Investment Law have repeatedly faltered, reinforcing a wait-and-see stance among investors. Although reform discussions resurfaced in 2024, developments have since slowed. In the interim, foreign direct investment has remained concentrated in existing projects such as Oyu Tolgoi, while new inflows have declined by roughly 35%.

  • 😨 A Long Plateau: Mongolia’s peak year for foreign investment remains 2011, when inflows reached $5.7 billion, a level not matched in the 15 years since. More recently, FDI fell by $349.1 million year-on-year.

  • 👺 Structural Risks Persist: Assessments such as the US Investment Climate Statement continue to highlight policy inconsistency and legal uncertainty as persistent concerns.

Overall… Forgoing large-scale forums may deliver short-term fiscal savings. Private initiatives, such as those organized by Capital Markets Mongolia, have shown that investor engagement can proceed without heavy state involvement. The broader question is whether policy clarity and reform momentum can be sustained. Without them, the constraint on investment is unlikely to be the absence of forums, but the persistence of uncertainty.

Why The 'AI Reset' of 2026 Could Blindside Most Investors

Most investors think the AI boom is already underway. But one 47-year Wall Street veteran says everything we've seen so far is just phase one. A new wave of AI infrastructure is coming online in 2026. When it does, it could completely reshape which companies lead the next cycle — and which ones get left behind. He's now recommending specific stocks to buy ahead of what he calls "the AI Reset," and the names to exit before it hits. The investors who understand what's coming could be positioned for the biggest gains of the decade. The ones who don't may not get a second chance. Get his full list of buys and sells here — no cost, no obligation.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

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