A complete resource for commercial dispute resolution in Israel — domestic and international arbitration, mediation, and enforcement of arbitral awards.
Israel has a well-developed framework for alternative dispute resolution. Domestic arbitration is governed by the Arbitration Law 1968, which is broadly based on English arbitration law. International commercial arbitration in Israel is generally consistent with the principles of the UNCITRAL Model Law, and Israel is a signatory to the New York Convention on the recognition and enforcement of foreign arbitral awards.
Mediation in Israel has grown significantly in recent years, supported by court-annexed mediation programs and the Israeli Mediation Institute. Courts regularly encourage parties to attempt mediation before and during litigation. Mediated settlement agreements can be enforced as court judgments upon application to the court.
For international commercial disputes with Israeli parties, arbitration clauses specifying a neutral seat (such as ICC, LCIA, or the Israel Centre for Commercial Arbitration) offer a practical and enforceable dispute resolution mechanism without the need for full Israeli court litigation.
What You'll Find in This Section
Frequently Asked Questions
Yes. Israeli law recognises arbitration agreements and arbitral awards. Once an arbitral award is issued, either party can apply to the relevant Israeli court to have it confirmed as a court judgment, which can then be enforced through the Execution Office.
Yes. Israel ratified the New York Convention in 1959. Foreign arbitral awards issued in signatory countries can be recognised and enforced in Israel by applying to the District Court. The court has limited grounds to refuse enforcement (jurisdictional defects, public policy, etc.).
The ICCA is Israel's primary institutional arbitration body, affiliated with the Israeli Chamber of Commerce. It administers domestic and international commercial arbitration under its own procedural rules, and maintains a panel of experienced arbitrators.
Not in most cases, but courts strongly encourage it. Under court-annexed mediation programmes, judges routinely refer civil and commercial disputes to mediation at an early stage. Parties who unreasonably refuse mediation may face cost penalties.
Under the Arbitration Law 1968, grounds for challenging an award include: lack of a valid arbitration agreement, arbitrator bias or misconduct, procedural unfairness, the arbitrator acting beyond their authority, and conflict with public policy. Courts take a pro-arbitration stance and rarely set aside awards.
Commercial Dispute with an Israeli Party?
Adv. Eli Shimony represents clients in arbitration and mediation proceedings and advises on dispute resolution strategy for cross-border matters.