If an Israeli arbitration agreement does not specify the number of arbitrators, how many are appointed?

The Arbitration Law 5728-1968 governs domestic arbitration and works by gap-filling. Section 2 makes the conditions in the First Schedule part of every arbitration agreement except to the extent the parties contract out of them. The first of those default conditions sets the tribunal at a single arbitrator, on the assumption that one decision-maker is faster and cheaper for most domestic disputes. If the parties then cannot agree on who that arbitrator is, the Law lets either side ask the District Court to appoint one. Parties who prefer a panel simply say so in the clause, commonly choosing three for higher-value or cross-border matters where each side appoints one arbitrator and those two select a chair.

The number matters more than it first appears, because it drives both cost and dynamics. A sole arbitrator keeps fees down but concentrates the outcome in one person's judgment, while a three-member tribunal costs roughly three times as much in arbitrator fees but offers balance and is the norm in international practice. Foreign parties contracting with an Israeli counterpart should set the number expressly rather than relying on a default that differs between the domestic and international regimes. Since the 2024 International Commercial Arbitration Law adopted the Model Law, an international case left silent defaults to three. Our guide to appointing and challenging an arbitrator in Israel explains how selection and replacement work.

From the full guide: Appointing & Challenging an Arbitrator in Israel

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