Can I apply for a stay if the arbitration seat is outside Israel?

Yes. Israeli courts can stay their own proceedings in favour of foreign-seated arbitration under both the 1968 Arbitration Law and the 2024 ICA Law. The seat of arbitration does not need to be in Israel for a stay to be granted.

The court will check that the arbitration agreement is valid and that the dispute falls within its scope, but the location of the seat itself is not a bar to the stay.

For more detail, see Stay of Court Proceedings in Favour of Arbitration Under Israeli Law.