What Is the Israel Centre for Commercial Arbitration?
The Israel Centre for Commercial Arbitration ( , commonly abbreviated ICCA) is a non-profit institution established jointly by the Israel Bar Association and the Federation of Israeli Chambers of Commerce. It serves as Israel's national arbitral institution, analogous to the role played by the American Arbitration Association (AAA) in the United States, the Chartered Institute of Arbitrators (CIArb) in the UK, or the Deutsche Institution f?r Schiedsgerichtsbarkeit (DIS) in Germany.
ICCA administers arbitration and mediation proceedings for Israeli and international commercial disputes. It maintains a roster of accredited arbitrators and mediators, provides administrative support, and supplies procedural rules adapted to Israeli legal practice.
ICCA's secretariat is located in Tel Aviv. Proceedings may be conducted in Hebrew, English, or another language agreed by the parties.
Services Offered by ICCA
- Administered Arbitration. ICCA manages the administrative aspects of the arbitration, including case registration, arbitrator appointment if the parties cannot agree, fee collection, and ensuring compliance with the procedural timetable.
- Mediation Administration. ICCA administers commercial mediation proceedings under its Mediation Rules, providing a mediator roster and procedural framework.
- Arbitrator and Mediator Accreditation. ICCA accredits and trains arbitrators and mediators, maintaining a publicly accessible roster of qualified practitioners.
- Training and Education. ICCA runs training courses, seminars, and workshops on arbitration and ADR for legal professionals.
- Model Clauses. ICCA publishes model arbitration and mediation clauses for use in commercial contracts.
- Emergency Arbitration. Under updated ICCA rules, an emergency arbitrator can be appointed on expedited grounds to grant interim relief before the main tribunal is constituted.
ICCA Arbitration Rules
ICCA administers arbitrations under its own Arbitration Rules, which are periodically updated to reflect developments in international arbitration practice. The Rules address the full lifecycle of an arbitration:
Key Features of the ICCA Rules
- Scope. The Rules apply to any dispute where the parties have agreed to submit to ICCA arbitration. They operate under the framework of Israel's Arbitration Law, 1968.
- Arbitrator Appointment. If the parties cannot agree on a sole arbitrator within the time specified in the Rules, ICCA appoints one from its roster. For three-member tribunals, each party nominates one co-arbitrator; the two co-arbitrators elect the presiding arbitrator, failing which ICCA appoints.
- Procedural Flexibility. The tribunal has broad discretion to manage proceedings efficiently. Hearings may be conducted in person or by videoconference.
- Language. The default language is Hebrew, but parties may agree to English or another language.
- Expedited Procedure. For disputes below a specified amount (currently approximately NIS 500,000), ICCA offers an expedited track with shortened timelines and simplified procedure.
- Award Deadline. ICCA Rules set a default deadline for the award, with provisions for extension. The institution monitors compliance and may intervene if proceedings stall.
- Confidentiality. All ICCA proceedings are confidential by default under the Rules.
ICCA Mediation Rules
ICCA's Mediation Rules provide a structured framework for commercial mediation. Key features include:
- Appointment of a mediator from the ICCA mediator roster within a short timeframe after the parties agree to mediate.
- A preliminary meeting to agree on the mediation process, timeline, and ground rules.
- Confidentiality of all communications, extending beyond the mediation to subsequent proceedings.
- Flexibility for the mediator to use joint sessions, private caucuses, or any combination.
- If mediation is successful, the settlement is documented in a written agreement. Parties may ask an Israeli court to approve it as a judgment by consent.
- Total confidentiality of the outcome — whether settlement was reached or not is not disclosed to third parties without consent.
The ICCA Arbitrator Roster
ICCA maintains a roster of accredited arbitrators who have completed ICCA's training programme and met its qualification standards. The roster includes:
- Retired Supreme Court and District Court justices
- Senior advocates (attorneys) with 15+ years of commercial litigation or arbitration experience
- Industry experts in fields such as construction, real estate, technology, finance, and insurance
- Bilingual practitioners (Hebrew/English) for international proceedings
When appointing an arbitrator, ICCA considers the nature of the dispute, the amounts involved, the legal and technical issues, the parties' preferences, and any disclosed conflicts of interest. The institution maintains an ongoing register of arbitrator availability and conflicts.
Commencing ICCA Arbitration
To commence arbitration under the ICCA Rules, the claimant files a Request for Arbitration with the ICCA secretariat. The Request must include:
- The names and addresses of the parties
- A copy of the arbitration agreement (or the relevant contract containing the clause)
- A brief description of the dispute and the relief sought
- Claimant's proposal for the number of arbitrators (if not specified in the contract)
- The registration fee
ICCA notifies the respondent of the Request and sets a deadline for the respondent to file its Response and any counterclaim. The institution then manages the arbitrator appointment process and the initial case management phase.
Fee Structure
ICCA charges two categories of fees:
- Administrative fees. Charged by ICCA for its administrative services. Typically a percentage of the amount in dispute, according to a published scale.
- Arbitrator fees. The arbitrator's compensation, paid by the parties (typically split equally pending the arbitrator's costs award). Arbitrators charge on a daily or hourly rate basis, or on a lump-sum basis agreed at the outset. ICCA sets guidelines for reasonable rates.
As a general indication, for a dispute of NIS 1 million (approximately USD 275,000), total ICCA administrative fees will be in the range of NIS 15,000×30,000, and arbitrator fees for a full hearing will typically add NIS 50,000×150,000 or more depending on the complexity. For disputes below NIS 500,000, the expedited track can significantly reduce costs.
For current and precise fee information, consult ICCA's published fee schedule, which is periodically updated.
Cost Comparison
ICCA proceedings are generally less expensive than ICC or LCIA administered arbitrations for disputes of comparable size, particularly for smaller disputes where the economies of a domestic institution are significant. For large-scale international disputes, ICC or LCIA may offer greater international enforceability visibility.
ICCA vs. Ad Hoc Arbitration
Choosing between ICCA-administered and ad hoc arbitration depends on the nature of the dispute and the relationship between the parties:
- Use ICCA when you want institutional support for arbitrator appointment, a structured fee and timetable framework, and the credibility of an institution-administered process. ICCA is particularly valuable where the parties may become uncooperative after a dispute arises.
- Use ad hoc when the parties have an existing trusted relationship, have already agreed on a specific arbitrator, and are seeking to minimise administrative overhead. Ad hoc proceedings can be simpler and cheaper for straightforward disputes with cooperative parties.
For most commercial contracts between parties who do not yet know each other well, ICCA-administered arbitration provides a more reliable framework.
ICCA vs. International Arbitral Institutions
For contracts involving foreign parties, the choice between ICCA and major international institutions (ICC, LCIA, SIAC) involves several considerations:
- Familiarity. An overseas counterparty may be unfamiliar with ICCA and may have reservations about an Israeli institution. ICC, LCIA, or SIAC are globally recognised and neutral.
- Language. International institutions default to English. ICCA defaults to Hebrew (though English proceedings are available).
- Arbitrator pool. International institutions draw from global panels; ICCA's roster is primarily Israeli practitioners.
- Award scrutiny. ICC's Court scrutinises every award before release — a quality control feature not present in ICCA.
- Cost. ICC and LCIA fees can be substantially higher than ICCA for medium-sized disputes.
For Israel-only disputes or where both parties are Israeli, ICCA is usually the preferred choice. For international contracts with a genuine cross-border element, international institutions are often more appropriate.
An Italian textile distributor with a long-running supply arrangement with an Israeli manufacturer agreed to ICCA arbitration when a NIS 340,000 quality dispute arose over a defective shipment. Because both parties wanted a fast, cost-effective resolution under Israeli law, ICCA was selected over the ICC — administrative fees were approximately NIS 22,000 compared to an ICC estimate of EUR 18,000 for the same claim value. A single arbitrator from the ICCA roster with commercial contract expertise was appointed within three weeks. The hearing took place in Tel Aviv by videoconference and the award was issued 11 months after filing, confirmed by the Tel Aviv District Court two months later. The experience confirmed that for mid-sized bilateral disputes rooted in Israeli commercial law, ICCA provides a materially cheaper and faster result than flagship international institutions.
ICCA Model Arbitration Clause
"Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity, or termination, shall be referred to and finally resolved by arbitration administered by the Israel Centre for Commercial Arbitration (ICCA) in accordance with the ICCA Arbitration Rules in force at the time of the arbitration. The seat of the arbitration shall be Tel Aviv, Israel. The number of arbitrators shall be [one/three]. The language of the arbitration shall be [Hebrew/English]."
This clause can be adapted by adding: governing law, confidentiality provisions, or a pre-arbitration mediation step. See our guide on drafting arbitration clauses for detailed guidance.
