Mongolia has not escaped the effects of the tumultuous geopolitical and economic situation across the globe in 2022, with the key areas of business and finance, M&A and human rights all being hit to various extents. A notable shift has been the employment space, particularly in relation to the mining sector, being that the country is rich in natural resources including coal, copper and gold. Construction was another area of activity in 2022, with the development of commercial and residential infrastructure continuing and, more recently, solar power plants and hydroelectric power stations being an increasing focus. Like many countries, Mongolia has seen a shift towards green energy and sustainability in agriculture, which are helping to counterbalance the precarious domestic economic situation.

Mongolia’s landlocked nature has led to some unique challenges over the past year. The country is, on the one hand, dealing with the impacts of neighbouring country China’s continued zero-Covid policies, which are keeping its borders closed, Mongolia’s exports low and domestic consumer prices high. These issues were exacerbated when neighbouring country Russia announced its unlawful invasion of Ukraine, which has piled more doom on Mongolian nationals through various political difficulties, unrest and fiscal inflation.

In the legal world, reports from leading legal firms in the country include expectations of changes to legislation in public and private partnership law, as well as changes in the law around the foreign investment market in the coming years. There is also the suggestion that despite the setbacks and hurdles its economy faces, the legal market at least is beginning to recover from the negative impacts of Covid-19 on the economy, with work picking up across the board. In addition, the future could see more constitutional amendments in 2023, following those which occurred in 2019, which will impact the means by which leaders are elected; and the effects of the recent legislative amendments to banking laws, which made all banks public entities and reduced the legal concentration of shareholding to a maximum of 20%, continue to be seen.

Leaders in the legal market include Ulaanbaatar-based firms KhanLex Partners LLP, which demerged and relaunched in 2018, and Melville Erdenedalai LLP, which is well-equipped to deal with domestic and international matters and has a particular specialism in the developing green energy and environmental sector. Australian international firm Minter Ellison Lawyers is also a key name in the market.