Is arbitration cheaper than going to Israeli court?

In absolute upfront terms, Israeli court litigation is almost always cheaper — court fees are set by statute, judges are provided by the state free of charge, and the total process cost for a straightforward claim is substantially lower. Arbitration costs more in absolute terms because you pay the arbitrator directly. However, arbitration is typically much faster (6–18 months vs. 3–6 years in the District Court), which reduces indirect costs: management time, locked-up cash, and commercial uncertainty. For high-value, time-sensitive, or internationally enforceable disputes, arbitration's overall cost-benefit calculation can be favorable despite the higher sticker price.