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If the International Monetary Fund (IMF) is correct, Iran is experiencing accelerated economic growth. Published in August 2011, an IMF report states growth rates reached 3....

If the International Monetary Fund (IMF) is correct, Iran is experiencing accelerated economic growth. Published in August 2011, an IMF report states growth rates reached 3.2% in 2011, a substantial increase on the 0.6% recorded two years earlier. These reports rely solely on official Iranian data and the IMF's independent regional report predicted 0% growth.

The view of the country's lawyers aligns with the earlier projections. "They predict 0% growth this year. Our clients were oil dominated but they are all but gone. There are one or two left but they are exiting," says one. The government cut oil and gas subsidies in the country in December 2010 as part of a five year economic plan to counteract the loss in revenue incurred by four rounds of sanctions but will pass the $60 million in savings on to the poorest members of it's population. Invariably, businesses in the region were less impressed, as one lawyer observes: "The abolition of subsidies was particularly contentious, a lot of our clients are finding it very expensive to do business in Iran."

The trade sanctions imposed on Iran by the UN and US, which restrict its sale of oil and gas, have driven away the European multinationals: "The big European companies have either left or are thinking of leaving and we have clients who are looking at exits so there is definitely a trend there," observes one lawyer.

Lawyers note activity is from companies moving in to Iran where there see a viable market. "You find a lot of non contentious clients coming to Iran; you see a lot of clients in the food industry or the ceramics industry. They've come to Iran now as it's a big market so it's very attractive to them," say one lawyer, adding: "We're getting local establishments so we're getting a lot of clients who set up plants here either directly or through joint ventures."

Although investment from the west has diminished, Asian companies are still plying their trade with Iranian lawyers. "We are representing a few major Chinese companies in the field of telecommunications and at the same time in the banking sectors and the mining sectors," explains one lawyer.