On 17 May 2012 Mongolia's parliament passed a new law requiring both government and parliamentary approval for any foreign investments worth more than $76m that buy a stake of more than 49 percent in businesses in certain strategic sectors.
Under the final version of the law, foreign investments need approval if they fall into any of three 'strategic' sectors: minerals, banking and finance, and media and telecommunications. Investments in these sectors of more than $76m for a stake of more than 49 per cent will have to be approved by Mongolia's Foreign Investment and Foreign Trade Agency (Fifta), and subsequently by parliament. Each has 45 days to make a decision, bringing total approval time to around 90 days.
'It's a good law for Mongolia and provides stability and clarity for investors,' said Eric Zurrin, chief executive of ResCap, a boutique investment bank in Ulan Bator. 'This brings Mongolia more in line with mature, resources-rich economies like Australia and Canada.'
 
Update May 8, 2013:
In April 2013 at its annual session, the Mongolian parliament has partially reversed the investment law. Foreign investors no longer need to seek parliamentary approval for all investments. Government approval, however, is still required, as is parliamentary approval for acquiring stakes of more than 49% of equity. This has been done in order to reattract foreign investment, as it had dropped by 17% in 2012, hitting the lowest monthly level of FDI inflow since at least 2010 in February 2013.