Iran is the eighteenth-largest global economy, with an estimated Gross Domestic Product (GDP) of $387.6 billion in 2015 and the second-largest ( iranian law office) population in the region with
78.8 million people. Nonetheless, Iran is considered to be an upper middle income country.( iranian law office)
Iran holds the world’s fourth-largest proven crude oil reserves and the world’s second-largest natural gas reserves.
Its proven oil reserves exceed 158 billion barrels and gas reserves stand at 33.5 trillion cubic meters.
According to the World Bank, Iran’s economy is characterised by a large hydrocarbon sector, small-scale agricultural and services
sectors, and a signiﬁcant state presence in the manufacturing and ﬁnancial services industries.
Iran has quite a well-established legal system that has developed and evolved over the last hundred years or so. However, due to the fact that there has not been much foreign investment in Iran in recent decades, its legal system is not well designed for cross-border business transactions and is not yet ready for sophisticated instruments.
Iran’s legal system is inﬂuenced by the models of the French and German legal systems. It currently consists of both civil and Sharia laws, and although the majority of transactions are governed by civil law,
the principles of Sharia law may still be applicable in certain cases as it stems from several very important articles of the country’s constitution.
Nevertheless, the application of Sharia principles is rather limited and serves to prevent the adoption of laws that contradict Islamic doctrines rather than being directly applied to commercial transactions.
As an indication of the gradual change in the country’s foreign policy, Iran has adopted a major law on the attraction and protection of foreign investments, called the Foreign Investment Promotion and Protection Act of 10 March 2002 (FIPPA).
FIPPA provides considerable privileges and incentives to those who want to invest within its framework.
The economy’s strategic sectors include energy, oil & gas, the ﬁnancial sector, and media and telecoms, all of which are very closely regulated by the government and require a long list of approvals and clearances.