IFLR 1000
The Guide to the World's Leading Financial Law Firms

Albania has a small legal sector in which it is hard to find top lawyers for hire and in which associates tend not to move firms. "The legal market is very narrow," says one local partner: "Taking partners from outside is not easy and finding top-quality associates is quite difficult....

Albania has a small legal sector in which it is hard to find top lawyers for hire and in which associates tend not to move firms. "The legal market is very narrow," says one local partner: "Taking partners from outside is not easy and finding top-quality associates is quite difficult."

Commercial and private practice has had to develop quickly over the 20 years since the economy began opening up and, considering this, one partner notes "the standard is very high". This impresses clients, who find top firms "quite a difference from the environment one would expect from a developing country such as Albania".

However clients do note that standards are not as high as in western Europe. "Legally, there are many laws that need further clarification, as there are many which are ambiguous, and sometimes the laws are not automatically properly applied," says one client. Capital markets regulations have been keeping Albania behind, and recent legislation such as the Pension and Corrective Investments law have been enacted with this in mind.

The top four firms have all held their positions in the market for almost 15 years. The largest firms are Boga & Associates and Kalo & Associates, which were both established in 1994. International firms Tonucci & Partners and Wolf Theiss have a smaller number of lawyers on the ground, but maintain a large presence due to their international status and standards, deep reserve of internal expertise and wide-ranging networks.

Second-tier firms are smaller local firms with fewer staff, apart from Loloci & Associates. These firms were established in a second wave from 2002/03 and partly formed as spin-offs from the established firms in response to increased legal work coming primarily from big clients in the energy, banking and real-estate sectors.

The market has been affected by reluctance and hesitancy as a "psychological effect" of the credit crunch according to one local partner, and some firms note delays in closing deals. "People are more reluctant to invest," says one partner. "For example construction, which is a major investment area in Albania, is not doing so well at the moment." Another partner explains that there is much more scrutiny from banks. "But they have not stopped lending; they are trying to be careful," the partner says.

Despite this, 2008 was a record year for the legal sector and large energy projects, particularly in the hydro and renewable markets, are sheltering firms from any slowdown.