Originally from Arbitration Law and Practice in the Middle East - Second Edition

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I. INTRODUCTION: ARBITRATION IN ISRAEL – HISTORY AND INFRASTRUCTURE

A. History and Current Legislation on Arbitration

1. Historical evolution of law relating to arbitration

The governing statutory framework for arbitration in Israel is the Arbitration Law, 1968 (“Arbitration Law” or “Law”). The Law repealed the Arbitration Ordinance of 1926, which was enacted by the British Mandatory authorities in Palestine. The Arbitration Ordinance mirrored the English Arbitration Act of 1889, however it did not incorporate further changes that had been implemented in English arbitration law in 1934 and 1950. The Arbitration Law was amended twice. In 1974, the Law incorporated specific provisions relating to the enforcement of foreign arbitration agreements and awards pursuant to international conventions. In 2008 the amendment expanded the limited control of courts over the award by enabling parties to agree that the award would be subject to appeal to an appeal arbitral tribunal, or to the court. In 2018 the Law was amended twice, the first amendment relates to procedural matters applicable in an appeal before an arbitral tribunal, and the second amendment relates to the substantive jurisdiction of the courts in matters of arbitration.

Additionally, in 2014, the Standard Contracts Law, 1968, was amended by inclusion of specific provisions relating to arbitration agreements and unduly disadvantageous conditions.

2. Current law

The Arbitration Law regulates all matters concerning arbitration. In addition, the Regulations for Procedure in Matters of Arbitration, 1968, govern procedural aspects relating to arbitration, and the Regulations for the Execution of the New York Convention (Foreign Arbitration) 1978, govern matters concerning the recognition and enforcement of foreign arbitral awards in Israel.