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What’s inside today’s edition…

• 💰 EBRD Extends New Lending to XacBank

• ⚖️ Landmark Law on Business Freedom

• 📊 Mongolia Faces Demand for 82,600 New Workers in 2026

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

MARKET

EBRD: Central Asia and Mongolia are set to record the strongest economic growth across EBRD regions, with GDP expected to expand by 5.6% in 2026.

DOJ: Former Prime Minister S.Batbold has moved to intervene in a DOJ forfeiture case involving 2 luxury Manhattan apartments allegedly purchased for his benefit using proceeds from a corrupt mining deal.

XAC: EBRD to lend up to $80 million to XacBank JSC.

⚖️ Business Freedom Law Headed for Fast-Track Approval

The Mongolian government has submitted a landmark draft law on Business Freedom, along with amendments to 99 related laws, to Parliament under an urgent procedure. The proposed legislation aims to simplify the licensing system, reduce government bureaucracy, improve the investment climate, and ensure greater tax stability for businesses.

🏋🏻‍♀️ Simplifying the Permit System

Under the new draft law, special permits for companies would be extended to 10 years, while standard permits would last 5 years. If authorities fail to respond to a standard permit application within 22 days, the permit would be considered automatically approved, allowing businesses to begin operations without delay.

• 🏃🏻‍♂️ The draft also removes the current restriction that prevents businesses with tax or social insurance debts from obtaining permits. This change is expected to ease pressure on small and medium-sized enterprises.

✂️ Cutting Red Tape Across the Board

The legislation includes significant measures to reduce bureaucratic hurdles. Over 120 types of permits would be transferred to professional associations, while more than 30 permits would be fully eliminated. Additionally, 146 existing licensing requirements currently operating under the names of “registration” or “certificates” would be streamlined and clarified.

🤑 Supporting Investment and Long-Term Stability

To attract larger investments, the draft law introduces tax stabilization agreements for projects worth ₮50 billion or more, with stabilization periods of up to 20 years. It also establishes mechanisms for resolving investor disputes through arbitration and mediation, offering greater legal certainty for both domestic and foreign investors.

🧩 Boosting Green Economy and Technology

The proposed law includes strong incentives for Mongolia’s green and digital transition. Imports of equipment related to renewable energy, battery storage, green hydrogen, data centers, and artificial intelligence would be fully exempt from customs duties.

In addition, the draft introduces a legal framework for conducting government procurement through AI-based, fully automated systems with minimal human intervention, a significant step toward modernizing public services.

• 📃 Expected Impact: According to the government, these reforms will reduce administrative barriers, improve the quality of public services, and create a more favorable environment for investment, job creation, and sustainable economic growth.

Overall… the Business Freedom draft law is one of the most ambitious efforts in recent years to modernize Mongolia’s business environment and improve its investor appeal, though its real impact remains uncertain given past gaps in implementation and limited progress in reducing regulatory burdens.

⭐ Selected for you

ECONOMY & BUSINESS

• Mongolia Energy Flags Sharp Profit Slump Amid Weaker Coking Coal Demand. (TheGlobeandMaeil)

• TMK Lifts Mongolian Gas Output Ahead of July Drilling. (TheWestAustralian)

• Digital Fraud and Online Shopping Scams Surge in Ulaanbaatar. (ANN)

POLITICS

• Chinese Troops Showcase Unmanned Systems in Joint Drills with Mongolia. (CGTN)

• Preparing the Next Generation to Think: Chess in Education Conference in Mongolia. (FIDE)

• Kazakhstan-Mongolia Flights Open Fresh Travel and Business Opportunities. (TheCaspianPost)

• 20%–30% of 13,000 Children with Disabilities Attend School in Mongolia. (ANN)

• During the Ulaanbaatar Dialogue South Korea Calls for 4-Way Talks on North Korea. (UPI)

• Mongolia: Indian Embassy Hosts Visiting Buddhist Monks, Senior Delegates. (OmmcomNews)

 CULTURE & LIFESTYLE

• Tost Toson Bumbiin Nuruu Has Been Named One of UNESCO’s 14 New Biosphere Reserves on World Environment Day. (UNESCO)

• Tracking Snow Leopard Movements Across Mongolian Gobi’s Low-Elevation Corridors. (WCS)

• Mobile Screening Drives Expanded Breast Cancer Care in Mongolia. (ACS)

• Outbreak of Foot-and-Mouth Disease Reported in Southern Mongolia. (XinhuaNews)

🛑 Mongolia Faces Demand for 82,600 New Workers in 2026

Mongolia is projected to require 82,600 new hires in 2026, underscoring sustained labor demand across the economy as businesses continue to expand and replace workforce gaps.

🏢 Job Structure 

Labor demand is expected to be dominated by permanent positions, which account for 90.7%, or 74,900 jobs, while temporary roles make up the remaining 9.3%. More than half of total demand, 53.2%, is driven by new job creation, while the remaining 46.8% reflects replacement needs, highlighting that churn is nearly as significant as expansion.

• 📅 Timing: Hiring activity is heavily front-loaded, with 66,500 jobs, or 80.5% of total demand, expected in the first half of the year, and the remainder distributed in the second half.

• 📍 Geographic Concentration: Demand is highly concentrated in Ulaanbaatar, which is set to account for 80.7% of total labor demand, or 66,600 jobs, of which 52% are new positions.

In contrast, regional demand is expected to weaken, with declines of 13.1 percentage points in the Khangai region, 7.8 points in the central region, and 0.5 points in the eastern region.

📊 Comparison with Unemployment 

As of Q1 2026, the national unemployment rate stands at 5.7%, or approximately 80,500 people. While total labor demand slightly exceeds the number of unemployed individuals, structural constraints remain significant, particularly skill mismatches and regional imbalances that limit efficient labor absorption.

Because demand is heavily concentrated in the capital, migration pressure toward Ulaanbaatar is likely to increase, while some regions may simultaneously face labor shortages.

Overall… 2026 is shaping up as a year of strong labor demand and active hiring conditions. However, without stronger vocational training systems and more balanced regional development, much of this demand may remain structurally unfulfilled.

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

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.