Investors eye rewards and risks in post-sanctions Iran

Tehran 

Foreign firms are eager to exploit the potential of Iran's long-isolated economy following a landmark nuclear deal, but experts say doing business in the Islamic republic will remain hugely challenging. 

The agreement between Tehran and major powers announced in Vienna on Tuesday offers an opening for international companies as sanctions are rolled back in return for steps to rein in Iran's nuclear programme.

With the ink barely dry, Germany said its vice chancellor and economy minister Sigmar Gabriel would visit Iran for three days from Sunday with a "small delegation of industry and science representatives". 

His ministry said there was "great interest on the part of German industry in normalising and strengthening economic relations with Iran".

French Foreign Minister Laurent Fabius and Italian Economic Development Minister Federica Guidi also plan to visit Iran following the nuclear accord. 

But despite the buzz over the historic agreement, analysts said Iran was no El Dorado for foreign firms. 

"Doing business in Iran will not change overnight as the country suffers from an outdated legal system, restrictive labour laws and a lack of significant experience in dealing with international investors," said Firas Abi Ali, an analyst at London-based research firm IHS.