Creation of a single exchange rate by Iran will have an immediate, qualitative impact on the import front and in encouraging investments into the country, according to the head of Iranian Business Council.

"This gives a much needed stability that businesses are looking for. At one time, we had four of five different exchange rates going around in the Iranian market depending on the product or sector," said Mohammed Nakhjavanpur.

It was last month that Iran decided to unify its exchange rates.

"Already benefits are being realised. This will also help Iran's offtake of goods from the UAE. At 8,000 riyals to the dollar, the rate is also fairly stable."

The UAE has traditionally been one of Iran's biggest trade partners. Several UAE companies have also shown interest in the gradual opening up of sectors in Iran, such as telecommunications and energy.

IBC yesterday co-hosted a meeting with the French Business Council.

"Iran is slowly opening up to overseas investments. There is no longer the issue of double taxation, and corporate taxes are down to 25 per cent or so," added Nakhjavanpur.

While the U.S. government still holds out from allowing its companies to invest in Iran, the likes of France and the UK have been raising their profile in the country.

Western financial institutions have also been facilitating major projects.