Ambassador Extraordinary and Plenipotentiary of the State of Kuwait to Mongolia Mohammad Faisal Al-Mutairi shared his impressions and experiences of working in Mongolia. The Ambassador mentioned that his term of assignment in Mongolia is coming to an end, and expressed confidence that the foundation of relations and cooperation between the two countries, established over the past six years, will continue to strengthen and develop.

I was appointed as my country's ambassador to work in the friendly country of Mongolia in October 2018. I worked in this country for 6 years, and I really enjoy the beautiful nature of Mongolia, its ancient historical heritage, and culture, and the warmth and hospitality of the Mongolian people. At first, I faced some difficulties adapting to the harsh Siberian winter in Mongolia, known for its extreme cold. I believe that Mongolia, with its beautiful vast land and animal and natural resources, will greatly boost its development. I am confident that the future of Mongolia will be bright and prosperous thanks to its people and the vision of its leaders...

During 6 years, I took upon myself, in coordination with my colleagues in the Ministry of Foreign Affairs of the State of Kuwait, the task of developing bilateral relations between the State of Kuwait and Mongolia and giving them a boost of progress and development in all fields, especially in the political, economic, health and commercial fields, despite some challenges... Shortly after assuming my duties, a visit was organized for the Mongolian Foreign Minister to the State of Kuwait in December 2018. After that visit, I suggested to the esteemed Ministry to hold a political consultation meeting as an organized and extended dialogue mechanism between the Kuwaiti and Mongolian sides. Indeed, the first round of political consultations was held between the Foreign ministries of the two countries in the city of Ulaanbaatar in 2019. After that, the Secretary of State at the Mongolian Ministry of Foreign Affairs visited the State of Kuwait in 2020. In the same year, 2020, the second round of political consultations was held in Kuwait City. The aforementioned visits and meetings addressed bilateral relations and ways to enhance them in all fields, especially in the economic, commercial and tourism fields, and in particular touched on the possibility of exporting meat from Mongolia to the State of Kuwait, which is part of ensuring food security for the State of Kuwait, which I always strive for, given the huge livestock wealth that Mongolia is famous for.

At the beginning of 2020, the world faced a challenge represented by the Corona pandemic, and Mongolia, like other countries, went into a state of high alert, which led to the postponement of periodic meetings of cooperation mechanisms between the two countries, and we stopped organizing the National Day reception for more than two years due to the pandemic and the resulting quarantines. However, our bilateral relations, even during the pandemic, and with perseverance and determination, did not stop, as the State of Kuwait is considered one of the donor countries in the (COVAX Initiative), which aimed to provide an opportunity for access to a vaccine against Corona for all countries with modest health capabilities, from which friendly Mongolia received reasonable quantities of the vaccine, as part of efforts to enhance global health security and prevent epidemic disasters.

After recovering from the pandemic and quarantine, things returned to normal as we, along with our Mongolian friends and colleagues, carried out various activities and events such as the “Welcome to Mongolia” event in the State of Kuwait, which was organized in March 2023 by the Ministry of Foreign Affairs, the Ministry of Culture, the Ministry of Environment and Tourism of Mongolia in cooperation with the National Council for Culture, Arts and Letters in Kuwait to introduce Mongolia, its people and culture. In March of last year, the Kuwait-Mongolia Economic Forum was held in Kuwait City and was organized between the Mongolian Chamber of Commerce and Industry in Mongolia and the Chamber of Commerce and Industry of the State of Kuwait in the presence of the Foreign Policy Advisor to the President of Mongolia, the Chairman of the Mongolian Chamber of Commerce and Industry, the Vice Chairman of the Kuwait Chamber of Commerce and Industry, about 30 Mongolian companies and the same number of Kuwaiti companies. A memorandum of understanding was signed between the Chambers of Commerce and Industry in Mongolia and the State of Kuwait in order to provide support for establishing relations between companies in the two countries, exchanging information, organizing exhibitions and conferences, and conducting market studies.

On the development and health front, I would like to point out the importance of the inauguration of the Burn Center, which was completed with a generous Amiri grant of 8 million dollars and under the supervision of the Kuwait Fund for Arab Economic Development, at the end of May last year 2023, in the presence of His Excellency the Mongolian Prime Minister, the Minister of Health, and the official delegation from the Kuwait Fund. We are now happy that the Burn Center is providing its services at full capacity to Mongolian citizens...

At the end of last year 2023, we were able to hold the third meeting of political consultations between the foreign ministries of the two countries in December 2023, during which a wide range of topics were discussed, including ways to enhance bilateral relations in the economic, commercial and investment sectors, and activating the competent authorities in the two countries to prepare agreements and memoranda of understanding for signing during high-level visits between the two countries in the future...

In terms of bilateral agreements, the embassy prepared a visit by a delegation from the Mongolian Ministry of Roads and Transport Development and the Mongolian General Aviation Authority to the State of Kuwait in February of last year 2023, and they met with the Deputy General Authority of Civil Aviation of Kuwait. The two sides agreed to sign an Agreement on Air Relations between the two countries in the near future.

As I mentioned above regarding securing food security for the State of Kuwait, there were joint efforts with the Mongolian side to export meat from Mongolia to the State of Kuwait, and the Public Authority for Food and Nutrition in the State of Kuwait lifted its ban on importing all types of meat from Mongolia in December 2023. The Gulf Accreditation Center in Gulf Cooperation Council also decided in December 2023 to accredit Mongolia concerning agency to issue a halal certificate within it, for a period of 5 years (2023-2027). These efforts open up prospects for trade cooperation between Mongolia and the Gulf Cooperation Council countries, especially with the State of Kuwait. We recently witnessed the first shipment of Mongolian meat to the State of Kuwait, and it is currently being sold in Kuwaiti markets....

Recently, on October 7, 2024, His Excellency the President of Mongolia, Khurelsukh Ukhnaa, awarded the State of Kuwait, represented by the Kuwait Fund for Arab Economic Development (KFAED), with the Friendship Medal considering the contributions made by the State of Kuwait in the socioeconomic development of Mongolia. The award of this presidential medal indicates the level of strength of cooperation between the two friendly countries. The honor also came in appreciation of the contributions, loans, and aid from the Kuwait Fund for Arab Economic Development as a result of the embassy’s tireless efforts and endeavors to strengthen cooperation ties and develop bilateral relations between the State of Kuwait and Mongolia over the past years and in all fields...

Soon, the State of Kuwait and Mongolia will celebrate the 50th anniversary of the establishment of diplomatic relations between them in June of next year, which is considered one of the important occasions for the two friendly countries. In this regard, I would like to emphasize the importance of commemorating this anniversary, which reflects the depth of the long-standing relations between the two friendly countries and cooperation in all fields, especially since the State of Kuwait is the first Arab and Gulf country to open a resident embassy in Mongolia, which makes this relationship of prominent, distinctive and unique importance....

Finally, after years of joint cooperation, I would like to express my deep gratitude to Mongolia for the support and hospitality I have received during my mission years, and I look forward at the same time to continue developing the high-level relationship between the State of Kuwait and the friendly country of Mongolia, and I hope that what has been achieved in the past years will be a solid foundation for launching towards developing and strengthening relations in the future between the two friendly countries...

I cannot miss on this occasion but to extend my sincere thanks and great gratitude to all those who contributed to accomplishing the mission and achieving the required goals, even if the ambition was greater than that, and to everyone who created a positive impression at that stage, which certainly does not mean the end, but rather the beginning of a new step towards another stage that can strengthen the foundation that was built during the past six years…

Ulaanbaatar - Mongolia

November 2024

Summary of events for the week of November 25-December 1, 2024.

Events in Ulaanbaatar:

November 25: Party groups of the State Great Khural of Mongolia will convene.

November 25: The 40th-anniversary concert of the “Awoken Steppe” and “My dear Father and Mother” songs by Sharav Byambasuren will be performed at the Central Culture Palace of Mongolia.

November 25: The “Musical Melody” concert dedicated to Batchuluun Tsend, a People’s Actor and founder of the Morin Khuur Ensemble, will be played at the Mongolian Philharmonic Hall.

November 26: Organized annually by the Union of Mongolian Writers, the 42nd “Bolor Tsom” poetry festival will be held to select the best poems of the year.

November 26: The centennial of the Proclamation of the Mongolian People’s Republic and the Adoption of the First Constitution will be celebrated.

November 26-27: Standing Committees of the State Great Khural of Mongolia will convene.

November 27: Regular session of the Cabinet of Mongolia will be held.

November 27: The “Collection of Lepidoptera” album and lecture will be held at the Museum of Natural History of Mongolia.

November 27-29: The “Financial Sustainability Forum of Mongolia-2024” will be held under the auspices of President of Mongolia Khurelsukh Ukhnaa.

November 28-29: The Joint Forum of the State Great Khural will convene.

November 30: The Mongolian Tourism Association and the “First Aid Community” will organize training to issue certificates.

Cultural Creativity Month is underway.

Local Events:

November 26: The “Citizen’s Oath Ceremony” with the participation of 16 elderly representatives will be held in Bayankhongor soum of Bayankhongor aimag.

November 26: As part of Cultural Creativity Month, a Biyelgee traditional dance training of 5 Western aimags of Mongolia will be held at Uliastai soum of Zavkhan aimag.

The United States is pleased to announce that the number of Mongolian students studying in the U.S. increased by 12.3% over the past year. This increase, which comes from data published in the latest “Open Doors” report, reflects the U.S.’s commitment to strengthening educational partnerships with Mongolia and providing opportunities for Mongolian students to study, research, and work in the United States.

The report also showed a record-breaking number of international students enrolled in U.S. higher education institutions for the 2023-2024 academic year. During that time period, the U.S. welcomed over 1.12 million international students from more than 210 countries and places of origin.

The U.S. continues to be a top destination for students from around the world, with a diverse range of academic programs and cultural experiences. According to the Department of Commerce, in 2023 international students contributed over $50 billion to the U.S. economy in 2023 and more than 368,000 jobs.

Mongolian students interested in studying in the United States can find free resources, advising services, training programs, information, and more by contacting EducationUSA Mongolia.

About EducationUSA Mongolia

EducationUSA promotes U.S. higher education by offering accurate, comprehensive, objective and timely and unbiased information about educational opportunities in the United States.

EducationUSA Mongolia is a member of EducationUSA, a network of more than 450 advising centers supported by the Bureau of Educational and Cultural Affairs at the U.S. Department of State. EducationUSA actively works in collaboration with the U.S. Embassy in Mongolia.

About Open Doors

This year we celebrate 75 years of the Open Doors report. The Open Doors report has conducted a census of international students for decades, becoming the trusted source on international mobility trends and informing strategies and policies of thousands of U.S. colleges and universities, foreign governments, and non-governmental organizations.

Parliament: The law now allows for replacing the state's ownership share with a special royalty system.

The Parliament of Mongolia has officially approved the proposed amendments to the Nuclear Energy Law and related legislation.

The law now includes provisions to replace the state's mandatory 34% ownership with a Special Royalty on Mineral Resource Utilization (SRMRU) and to convert ordinary shares into preferred shares. Specifically, the SRMRU will consist of base, special, and incremental royalties. The base royalty will be set at 5% of the sales value, while the special royalty, adjusted for deposit characteristics, will also be 5%. Incremental royalties will range from 0% to 9% based on market prices.

By converting ordinary shares into 10% preferred shares, Mongolia avoids financial liabilities while securing priority in dividend payouts. Additionally, investment agreements may now be extended for up to 20 years. A provision has also been introduced to place funds for post-mine closure rehabilitation and restoration in a special foreign currency account at the Bank of Mongolia, ensuring they are used exclusively for their intended purpose.

However, some lawmakers criticized the law for lacking detailed regulations regarding environmental protection, water use, and waste management, emphasizing the need to address these issues during contract negotiations.

Following the adoption of the law, the next steps will involve discussions on investment agreements. According to the Chief of the Cabinet Secretariat, the Parliament will review these agreements. The Minister of the relevant sector announced plans to finalize an agreement with Orano Mining by January 2025.

Translated by ChatGPT

Deteriorating air quality mostly driven by processed fuel-based heating has sparked growing public concerns in Ulan Bator, the capital of Mongolia, as residents embrace unusually harsh winter conditions.

The city's Air Quality Index showed that as of 10 A.M. local time on Thursday, PM2.5 levels in the city's Ger districts exceeded 500 micrograms per cubic meter, while central areas recorded levels of 200 micrograms per cubic meter, both significantly surpassing the World Health Organisation's recommended safety limits, Xinhua news agency reported.

PM2.5 particles, which measure 2.5 microns or below in diameter, pose serious health risks as they can penetrate deep into the respiratory system, reaching lungs and entering the bloodstream, medical experts warn.

Air pollution has been a persistent issue in Ulan Bator, home to nearly half of Mongolia's population of 3.5 million. Over half of the capital's population reside in Ger districts with a lack of basic infrastructure such as running water, central heating, and sewage systems.

To stay warm and cook during winters, residents rely on processed fuels and other flammable materials, contributing significantly to the city's air pollution.

Since the early 2000s, the Mongolian government, in collaboration with international organisations, has implemented various measures to combat air pollution, including replacing raw coal with improved fuels. However, the efforts have yet to yield significant improvements in Ulan Bator's air quality.

Mongolia's climate is characterised by a strong continental influence, featuring long, frigid winters and short, warm summers. Ulan Bator often faces temperatures as low as minus 25 degrees Celsius during winters.

Source: IANS

At the regular session of the Cabinet of Mongolia on November 20, 2024, a presentation was made to the members of the Cabinet on the measures taken as part of the reforms implemented by the “Erdenes Mongol” Group to improve leadership, governance, and the overall operations, as well as to establish Mongolia’s Sovereign Wealth Fund.

Through substantial enhancements in corporate governance, operational management, and systemic overhauls, the “Erdenes Mongol” Group achieved noteworthy production results in 2023. The “Erdenes Mongol” Group mined 599.6 thousand tons of copper concentrate and 35.1 million tons of coal, generating a sales revenue of MNT 14.9 trillion and a net profit of MNT 4.5 trillion. These robust financial outcomes directly contributed MNT 4.5 trillion in taxes to the State Budget of Mongolia. As a result, USD 3.6 billion was generated for the Central Bank of Mongolia, making up 77 percent of the Foreign Exchange Reserves. The parent company of the Group paid off accumulated debts of MNT 200.0 billion at the company level and MNT 394.0 billion at the group level.

The improvement in the Group's operations and the increase in financial performance created the opportunity to distribute dividends to the shareholders of "Erdenes Tavan Tolgoi" JSC. The dividends were allocated from the company's net profits for 2022 and 2023.

The State Great Khural of Mongolia has adopted a Law on Mongolia’s Sovereign Wealth Fund to ensure the fundamental principles of the Constitution of Mongolia and achieve the goal of distributing the majority of the benefits of natural resources equitably and fairly to citizens by generating them in Mongolia’s Sovereign Wealth Fund. This has not only created a legal foundation for the Mongolian people to own their wealth but also has established a legal basis for the legal status and stable operation of the "Erdenes Mongol" Group.

In 2024, the "Erdenes Mongol" Group generated MNT 500 billion for the Sovereign Wealth Fund, providing the opportunity for 10,000 households to enter the housing program. The "Erdenes Mongol" Group plans to implement the next comprehensive reform aimed at increasing the Sovereign Wealth Fund's revenue.

In connection with the presentation, the Cabinet of Mongolia tasked pertinent officials with:

-Continuing the comprehensive reform to increase the revenue of Mongolia’s Sovereign Wealth Fund and the Savings Fund of the Sovereign Wealth Fund and distribute the benefits of natural resources equitably and fairly to the people of Mongolia through improving the governance, operations, and efficiency of state-owned mining companies,

-Accelerating the process of expropriating lands for the establishment of industrial and technological parks, including the “Steel Production Complex," "Construction Materials Manufacturing Complex," "Coal-Chemical Complex," "Fluorspar Processing Complex," and "Coke-Chemical Complex," for state special needs,

-Submitting the proposal to the Cabinet meeting to include the six industrial and technological parks to be implemented by "Erdenes Mongol" LLC in the list of sectors, activities, product types, and locations for industrial and technological parks,

-Implementing measures to increase the allocation of freight wagons owned by public and state-owned entities under the "Erdenes Mongol" Group to boost exports and increase foreign exchange reserves.

President of Mongolia Khurelsukh Ukhnaa has vetoed the Law on the State Budget for 2025 and the accompanying laws, based on the relevant provisions of the Constitution and the Law on the President. Head of the Office of the President of Mongolia Zandanshatar Gombojav and other officials briefed on the veto on November 20, 2024.

Head of the Office of the President of Mongolia Zandanshatar Gombojav noted that the President’s decision to veto the Law on the State Budget for 2025 was based on the requirement for the State Budget to be efficient, cost-saving, and deficit-free. The veto was also based on the Parliament’s approval of the resolution to adjust the 2025 State Budget without meeting the prerequisites which include increased expenditure, decreased revenue, and required changes to the cost of approved projects and programs during the fiscal year.

The State Budget serves as a guarantee to overcome potential economic difficulties with minimal losses, increase national savings, limit price inflation, ensure economic stability, and support the normal operations of citizens, businesses, and taxpayers. Therefore, the Head of State emphasized the necessity of approving next year's State Budget in a manner that is efficient, economical, and deficit-free.

Additionally, President Khurelsukh highlighted the importance of considering the conditions of the global market and fluctuations in raw material prices, while focusing on fundamental principles such as increasing the country's foreign exchange reserves, boosting budget savings, and reducing debt. The Head of State emphasized the need to implement a countercyclical fiscal policy and adopt a deficit-free budget.

During its regular session on November 20, 2024, the Cabinet decided to submit the draft amendment to the Law on Labor Force Migration to the State Great Khural.

The revised Law on Labor Force Migration came into effect on July 1, 2022. To address the labor shortage in the labor market, a flexible policy is being observed for the employment of foreigners in Mongolia. The Government deemed it necessary to set a limit on the number and percentage of foreign workers in the highly productive sectors of the economy, including mining, information and communications, finance and insurance, and real estate, and encourage the employment of Mongolian citizens in these sectors. However, the Government believes it should determine the number and percentage of foreign workers employed in the construction, energy, manufacturing, and processing sectors, as well as the reduction and exemption of workplace fees.

The Law on Labor Force Migration states that “The employer shall have the right to request an invitation to hire a foreign employee in the event of failing to employ a domestic employee within 14 business days after placing a job advertisement in the employment registry and database and starting an active search for an employee. The 14 business day period specified in the law is considered a hindrance to enterprises and companies engaged in seasonal construction work when inviting foreign employees. Therefore, the Government intends to resolve this issue through the amendment.

The amendment will provide several benefits to enterprises and investors operating in sectors other than mineral and oil, including saving expenses through reduction or exemption from workplace fee concession to the Employment Support Fund, swiftly overcoming labor shortages, improving economic efficiency, and increasing the number of businesses. It would also play an important role in intensifying the implementation of strategically important infrastructure, processing, and development projects in Mongolia.

The Asian Development Bank (ADB) and the Mongolian government on Wednesday signed two projects aimed at accelerating climate investments and improving access to affordable, quality health services across the country.

The agreements were signed by ADB's Country Director for Mongolia Shannon Cowlin and Mongolia's Minister of Finance Bold Javkhlan during a ceremony in Ulan Bator, the capital of Mongolia.

"These two projects mark a significant step toward a more sustainable, resilient, and inclusive future for Mongolia," said Cowlin. "By embedding climate action into national plans and budgets, we can catalyze both public and private investments, driving a transition to a low-carbon, inclusive, and resilient economy. At the same time, we must also ensure that underserved communities have access to essential health services."

The policy-based loan of 100 million U.S. dollars for Mongolia's Accelerating Climate Investment Program aims to enhance the country's capacity to meet its climate goals under the Nationally Determined Contribution and National Adaptation Plan through improved institutional frameworks, gender-responsive strategies, and climate action budgeting.

The program focuses on catalyzing investments in renewable energy, energy efficiency, and climate-resilient agriculture, while expanding green financing mechanisms like green bonds and loans to support low-carbon development, according to the ADB.

Meanwhile, the Improving Access to Health Services for Disadvantaged Groups Investment Program - Tranche 2, valued at 82.2 million dollars, aims to enhance primary healthcare in urban and rural areas, upgrade district and hospitals in provinces, and strengthen procurement and financial management systems.

Key initiatives include building a new hospital in Chingeltei District of the capital city, upgrading a hospital in the western province of Khovd with low-carbon technology, establishing gender-responsive family health centers in underserved areas, providing emergency medical equipment, and reforming healthcare financing and service delivery models, said the bank.

The First Session of the National Committee on the Sovereign Wealth Fund and Housing took place in Ulaanbaatar, Mongolia on November 19, 2024.

Participants of the Session discussed a wide range of issues related to the Sovereign Wealth Fund and housing, including their current state, completed works, national housing policy, urban planning, infrastructure, mortgage loans, and other measures. In Mongolia, 30 percent of households reside in residential apartments while 70 percent live in houses and gers without full access to engineering infrastructure and networks. Among these, 273,736 households live in Ulaanbaatar, 144,308 in aimag centers, and 295,775 reside in soum centers.

As part of the Housing Policy funded by the Savings Fund of the Sovereign Wealth Fund, Oyun-Erdene Luvsannamsrai, Prime Minister of Mongolia and Head of the National Committee for the Sovereign Wealth Fund and Housing, instructed the relevant Government members and National Committee members to implement the following measures by January 15, 2025:

To formulate legal documents related to the implementation of the Law on National Housing and the Housing Policy, and submit them to the State Great Khural of Mongolia,

To develop policies and strategy maps for housing citizens and promoting young families, update the mortgage loan financing system,

To reform the funding system of mortgage loans, make a plan to increase its sources,

To approve and implement standards and models for residential apartments and green housing, create conditions for granting mortgage loans to residential apartments, and make necessary regulations,

To enhance power and heat supply sources required for the implementation of the National Housing Plan, develop and implement a Plan for line expansion,

To develop a plan for land acquisition, re-planning ger districts of the Capital City with state and local funds, construction of infrastructure in aimags, and present it to the Head of the National Committee.