Foreign companies sign contracts with Israeli suppliers, distributors, developers and tech partners in English all the time. The arbitration clause is often a single line copied from a template. When a dispute arrives, the foreign side finds that its Israeli counterparty would be perfectly happy to run the case in Hebrew, in Tel Aviv, in front of a Hebrew-speaking arbitrator.
Whether that happens depends almost entirely on what the contract says. This guide explains the rules on arbitration language in Israel, how to draft a clause that holds up, what tribunals do when the contract is silent, and where translation costs still arise.
1. Why language matters more in Israel than elsewhere
Israeli courts work in Hebrew. Pleadings, hearings and judgments are in Hebrew, and a foreign party litigating in Israel needs Hebrew-speaking counsel and translations of its key documents. Witnesses who don't speak Hebrew testify through an interpreter, but the case around them runs in Hebrew.
Arbitration is different because it is built on the parties' agreement. Neither Israeli arbitration statute requires Hebrew. That makes the arbitration clause the main tool a foreign party has for keeping a dispute in a language its managers, witnesses and documents already use. It also affects who can sit as arbitrator: an English-language case opens the panel to Israeli arbitrators who work in English and to arbitrators from abroad.
2. The legal basis: two statutes, same result
Which statute applies depends on whether the arbitration is international.
International commercial arbitration seated in Israel. The International Commercial Arbitration Law, 5784-2024 (Chok ha'Borerut ha'Mischarit ha'Bein-Leumit) was passed by the Knesset on 12 February 2024 and is based on the UNCITRAL Model Law. Under Section 3, an arbitration is international if, for example, the parties had their places of business in different countries when they signed the arbitration agreement, or if the seat, a substantial part of the performance or the place most closely connected to the dispute is outside the country where the parties have their places of business. Section 31 then says:
- the parties may agree on the language or languages of the arbitration;
- without agreement, the tribunal decides;
- unless agreed or decided otherwise, the chosen language applies to every written submission, hearing, award, decision and communication from the tribunal;
- the tribunal may order a party submitting a document as evidence to attach a translation into the language of the arbitration.
Domestic arbitration. Where the 2024 law does not apply, the Arbitration Law, 5728-1968 (Chok ha'Borerut) governs. It has no language provision at all. Procedure is a matter for the parties' agreement, and absent agreement, for the arbitrator. An English-language clause in a domestic arbitration agreement is therefore just as effective. The difference is that the 1968 law gives no default rule, so a silent clause leaves the question entirely to the arbitrator.
3. Drafting a language clause that actually works
Writing the contract in English does not, by itself, fix the language of the arbitration. A tribunal will treat the contract language as strong evidence of what the parties wanted, but it is evidence, not a decision. Say it expressly, inside the arbitration clause:
A few drafting points matter in Israeli deals:
- Hebrew documents. Much of the evidence in an Israeli dispute will be in Hebrew: Land Registry extracts (nesach tabu), Companies Registrar filings, municipal permits, WhatsApp messages between local staff. Decide in the clause whether these need full translations or only the passages relied on. A requirement to translate everything can double the documentary budget.
- Translation costs. State that each party bears the cost of translating its own documents, subject to the tribunal's final costs award.
- The arbitrator. If you want an English-speaking arbitrator, say so, or choose an institution that will appoint one.
- Consistency. If the contract appoints an institution, make sure its rules and your language clause point the same way. Party agreement prevails under all the major rule sets, but a clear clause avoids an argument at the outset.
For the rest of the clause, see our guide to drafting an arbitration clause for Israeli contracts.
4. When the contract says nothing about language
A silent clause sends the question to the tribunal, under Section 31 for international cases or the arbitrator's general procedural discretion in domestic ones. Tribunals usually look at:
- the language of the contract and of the arbitration agreement;
- the language the parties used in their correspondence and negotiations;
- the language of the main documents and the witnesses;
- the cost and delay of translation for each side.
An English contract, negotiated in English with a foreign party, will usually lead to English proceedings. A Hebrew contract, or a deal where all the correspondence was in Hebrew, may not, even if one party is foreign. Sometimes tribunals split the difference, allowing submissions in either language with translations of key documents.
5. How the main institutional rules handle language
Many Israel-related contracts refer disputes to an institution. Each set of rules starts from the parties' agreement:
- Israeli Institute of Commercial Arbitration (IICA). Founded in 1991 by the Federation of Israeli Chambers of Commerce, it is Israel's best-known arbitral institution. Its international rules provide that where the arbitration agreement is in English, the arbitration is conducted in English unless the parties agree otherwise.
- ICC. Article 20 of the ICC Arbitration Rules leaves language to the tribunal if the parties have not agreed, taking into account all relevant circumstances, including the language of the contract.
- LCIA. Under Article 17 of the LCIA Rules, the initial language is the language of the arbitration agreement, and the tribunal decides the language of the arbitration after consulting the parties if there is no agreement.
- Ad hoc arbitration under the UNCITRAL Arbitration Rules. Article 19 lets the tribunal decide the language if the parties have not.
For a comparison of administered and ad hoc arbitration, see institutional vs ad hoc arbitration in Israel.
6. Translation, evidence and witnesses
Even an English arbitration seated in Israel often runs partly on Hebrew material. In practice:
- Documentary evidence. The tribunal can order translations under Section 31(b) of the 2024 law, and arbitrators in domestic cases have the same power through their procedural discretion. Many tribunals accept translations prepared by the parties and only require a certified translation if the other side disputes accuracy.
- Witnesses. A witness who is more comfortable in Hebrew, Russian or Arabic can testify through an interpreter. Agree in advance who supplies the interpreter and whether the other side may check the interpretation.
- Experts. An Israeli expert on, say, planning law or Israeli accounting rules will usually rely on Hebrew sources. Ask for the report in the language of the arbitration from the start rather than translating it at the last minute.
- Remote hearings. Parties abroad often take part by video. Interpretation over video works but is slower, so plan longer hearing days.
7. Enforcing an English award: where Hebrew comes back
The award will be in the language of the arbitration. The question is what happens when you take it to court.
- International award, under the 2024 law. Section 44 says the party relying on the award attaches the original or a copy, and files a Hebrew translation of the award if the court orders it. Applications to set aside must be filed within 90 days of receiving the award.
- Domestic award, under the 1968 law. The award is confirmed by the court under Section 23. An application to set it aside under Section 24 must be filed within 45 days (Section 27). Expect the court to require a Hebrew translation of an English award.
- Foreign award. Recognition in Israel goes through Section 29A of the 1968 law and the New York Convention. Article IV(2) of the Convention requires a certified translation into the official language of the country where enforcement is sought, which in Israel means Hebrew.
- Execution Office. Once the court confirms the award, collection runs through the Execution Office (Hotza'a la'Poal), which works in Hebrew.
An English award has one clear advantage for foreign parties: if the losing party's assets are in the UK, the US or another English-speaking country, no translation is needed there. See enforcing an arbitration award in Israel for the full procedure.
