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Lebanon has bucked world trends and actually expects its economy to grow in 2009, a welcome bit of news for the beleaguered state. But despite the economic rise, law firms report a slowdown in real-estate work in the past year, subsequently depleting what is the the main source of M&A work for firms here....

Lebanon has bucked world trends and actually expects its economy to grow in 2009, a welcome bit of news for the beleaguered state.

But despite the economic rise, law firms report a slowdown in real-estate work in the past year, subsequently depleting what is the the main source of M&A work for firms here.

Restructuring work is emerging, particularly corporate restructuring, a sign says one partner that "people are basically ready for the next step, not developing so much but building up the structures". Project finance is an area that firms are trying to establish a presence in, given the expected growth in this type of transaction in Lebanon.

Lebanese banks have not provided work for law firms in the way that they have in other countries, with the central bank maintaining a tight grip on how banks operate.

However, the combination of favourable secrecy laws and a stable banking system has seen an influx of money into the country's banks, which, along with the arrival of a more flexible offshore law, should yield work for firms.

Retaining lawyers is still a problem, with the tri-lingual Lebanese lawyers an attractive prospect for Middle-Eastern firms who can offer more money than those only operating domestically. There have also been a number of spin-off firms launching in recent years, taking talent away from more established firms.

Some Lebanese law firms are looking to establish a regional presence, with many firms setting up offices around the Middle East. On the flipside, the prospect of foreign firms being allowed to set up in Lebanon is a possibility within the next three to five years, according to commentators.