1.What is the current legal landscape for your practice area in your jurisdiction?

Iran’s regulations, sanctions, and trade controls significantly influence contracts, foreign investment, agency, distribution agreements, and supply chain arrangements. This is particularly important because Iran plays a crucial role in regional trade.

The Iranian Commercial Code, as originally enacted in 1932 (1311 SH) and subsequently amended in 1969 (1347 SH), draws heavily from the Napoleonic Code and remains devoid mainly of Islamic jurisprudence influences.

In addition, the Foreign Investment Promotion and Protection Act (FIPPA) and its Implementation Regulations, approved in 2002 (the “Regulations”). FIPPA and the Regulations are designed to encourage and protect foreign investments in Iran, whether through equity investments in Iranian companies or financing of Iranian projects.

Moreover, the Iranian Maritime Code (1964) adopts the Hague Rules as the regulatory system for maritime transportation. The system does not incorporate modern maritime transportation practices, nor does it yet include the amendments of later conventions.

Finally, Iran integrates multiple legal systems into international commerce, shipping, and arbitration. The Law on International Commercial Arbitration (LICA) of 1997 covers “international commercial relationships,” meaning cases in which at least one party is not Iranian (Act Concerning International Commercial Arbitration, 1997). This law sets the rules for resolving international commercial disputes through arbitration.

2-What three essential pieces of advice would you give to clients involved in your practice area matters?

Foreign businesses operating in Iran face a unique environment with both challenges and protections. This advisory highlights three key points for international commercial activities in Iran.

1-International business in Iran functions within a complicated regulatory and geopolitical landscape. Clients should conduct comprehensive due diligence on regulatory approvals, trade and customs compliance, sanctions exposure, and the reliability of counterparties before finalizing any transaction. It is crucial to implement proactive compliance planning and allocate risks effectively in contracts to prevent disruptions, invalidations, or enforcement challenges.

2-When engaging with Iran, the way contracts are structured often has a greater impact on the outcome than the actual dispute itself. Clients should ensure that the governing law, arbitration clauses (including seat, institution, language, and scope), jurisdiction, and enforcement plans adhere to both Iranian law and international enforcement requirements. Poorly written clauses can significantly hinder the enforcement of agreements, particularly in cross-border and shipping cases.

Arbitration is often the best way to resolve international business disputes with Iran, but it is most effective when used appropriately. Clients should use contracts that are ready for arbitration and clearly assign risks, especially in shipping, logistics, and trade. Adding options like emergency relief or faster procedures can help. Combining arbitration expertise with knowledge of Iranian law leads to better dispute management.

Furthermore, Iranian law has mandatory rules and public policy limits that affect how disputes are resolved and how awards are enforced. These rules can limit which disputes are subject to arbitration and whether foreign arbitration awards are enforceable in Iranian courts. Clients should plan, from the outset, how and where an award or judgment will be enforced, taking into account Iranian public policy, asset location, sanctions exposure, and evidentiary requirements. A proactive enforcement strategy reduces execution risk and post-award delays.

3-While international best practices are important, successful foreign investment in Iran requires adapting those standards to the local legal, regulatory, and commercial environment. Investors can benefit from close coordination between international transaction planning and expertise in Iranian law. This includes using bilingual documentation, engaging with regulatory bodies, and maintaining ongoing compliance to ensure the long-term sustainability of the investment.

3-What are the greatest threats and opportunities in your practice area of law in the next 12 months?

In the coming year, achieving success in international business and arbitration with Iran will require careful planning, effective risk management, and robust dispute-resolution strategies. Clients who align their business objectives with solid legal planning will be better equipped to identify opportunities and mitigate potential risks.

Greatest Opportunities

Arbitration is expected to play an even greater role as the preferred dispute-resolution mechanism for international commercial and shipping matters involving Iran. Institutional development. Arbitration is likely to become even more important for resolving international commercial and shipping disputes with Iran. As institutions develop and more parties become familiar with arbitration, new opportunities for efficient, neutral, and business-focused dispute resolution arise. action planning.

More use of electronic contracts, digital trade documents, and technology-based arbitration delivers greater efficiency, speed, and cost control for clients. Law firms that combine legal expertise with digital tools and compliance technology will be best positioned to help clients manage complex international transactions.

Greatest Threats

Iran has clear rules for international arbitration and commercial contracts, but enforcing them can be difficult. Judges have broad discretion when applying public policy and mandatory rules, especially when recognizing or canceling awards. This creates uncertainty for foreign parties. Clients should focus on careful contract structuring and detailed enforcement planning to lower these risks. Geopolitical tensions, sanctions, and regional security issues complicate international business and shipping with Iran. These challenges can disrupt supply chains, increase insurance and shipping costs, and complicate contract drafting and dispute resolution, especially in maritime and logistics contracts. Arbitration clauses and compliance documentation can expose clients to regulatory breaches or unenforceable agreements. Insufficient alignment between Iranian legal requirements and international standards poses a significant risk.

4-How do you ensure high client satisfaction levels are maintained by your practice?

We provide advice that is both legally strong and practical for business. Every case receives partner involvement and a focus on transparency and accountability, ensuring consistent, strategic oversight. We speak both English and Farsi, enabling clear communication with international clients and ensuring compliance with Iran’s legal and regulatory requirements without missing important details. Our clients value predictability and trust. We identify key legal, regulatory, enforcement, and sanctions risks early and explain them clearly, along with practical ways to manage them. Clients get timely updates and clear cost information, helping them make informed decisions in international matters. For example, our partner-led team recently resolved a complex shipping arbitration by leveraging local expertise and strategic negotiation to secure a favorable settlement for our client within a tight timeframe.

I think Client satisfaction is built on predictability and trust. From the outset of each matter, we identify regulatory, enforcement, sanctions, and contractual risks and present clear mitigation strategies. We maintain structured communication, timely reporting, and cost transparency, ensuring that clients remain fully informed at every stage of a transaction or dispute.

Rather than approaching matters as isolated instructions, we prioritise long-term partnerships. We invest time in understanding each client’s industry, risk appetite, and commercial strategy, enabling us to anticipate needs and deliver practical, forward-looking solutions. Many of our mandates arise from repeat instructions and referrals, reflecting sustained client confidence.

5- What technological advancements are reshaping your practice area law and how can clients benefit from them?

The growing legal recognition of electronic contracts, digital signatures, and electronic communications in international transactions has significantly transformed business practices in Iran. Digital trade documentation, electronic bills of lading, and online transaction platforms facilitate quicker deal execution and lessen administrative burdens. For clients doing business in or with Iran, well-structured digital contracts enhance evidentiary reliability and reduce transactional risks, especially in cross-border enforcement matters.

Arbitration and dispute resolution systems are increasingly conducted via virtual hearings, electronic filings, and digital document production platforms. This development has reduced cost, improved procedural efficiency, and enabled seamless participation of multinational teams. For Iran-related disputes, technology enables clients to pursue or defend claims without geographic constraints, ensuring continuity even in complex cross-border matters. Digital case management also enhances transparency and strategic control over disputes.

Advanced compliance and analytics tools have become essential in international business and shipping. Systems for sanctions screening, vessel tracking, counterparty due diligence databases, and trade compliance software enable clients to assess risks before finalizing transactions. In regions such as Iran, where regulatory and geopolitical uncertainties require close monitoring, combining legal advice with technology compliance tools significantly reduces both operational and reputational risks.

Legal-tech platforms that analyse contract patterns and dispute trends are increasingly used to refine risk allocation clauses, arbitration provisions, and force majeure mechanisms. This allows clients to structure more resilient contracts and anticipate dispute scenarios before they arise, particularly in sectors such as shipping, logistics, infrastructure, and foreign investment.