Who appoints the arbitrator if the parties cannot agree in Israel?

A well-drafted arbitration clause either names the arbitrator or specifies exactly how one is chosen, for example by appointment by the head of the Israel Bar Association or by a named arbitration institution. When the clause is silent, or the chosen mechanism breaks down because the appointing person declines or the parties deadlock, Section 8 gives the District Court a gap-filling power to appoint on the application of a party. The court considers the nature of the dispute and any qualifications the parties specified in their agreement, and aims to appoint a suitable and neutral arbitrator. This ensures one party cannot frustrate the entire arbitration simply by refusing to cooperate in selecting the tribunal.

For foreign parties in a contract with an Israeli counterpart, the practical lesson is to draft the appointment mechanism with care, because relying on the court fallback adds time and cost to a process chosen for its speed. For international commercial arbitration seated in Israel, the newer International Commercial Arbitration Law 5784-2024 provides its own appointment defaults aligned with the UNCITRAL Model Law, including appointment by the court where the parties' chosen method fails. Naming a reputable arbitral institution in the clause usually removes any need to approach a court at all, since the institution administers the appointment under its own rules. Our guide to the arbitration process in Israel sets out each procedural step.

From the full guide: The Arbitration Process in Israel — Step by Step

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