India and Israel have signed a Memorandum of Understanding (MoU) on arbitration between the Indian Council of Arbitration (ICA) and the Israeli Institute of Commercial Arbitration (IICA) during Prime Minister Narendra Modi’s visit to Israel on February 26, 2026.
The development “recognises a significant step toward facilitating smoother commercial dispute resolution and enhancing investor confidence.”
In a joint statement, both countries reaffirmed their commitment to maintaining high-level engagement between the governments, industries, and peoples of both nations, with a vision of building an enduring India–Israel partnership that harnesses the ambitions of their knowledge-driven economies to forge a future defined by creativity, technology, collaboration, and shared success.
Speaking exclusively to ETLegalWorld, Eli Cohen, Partner at Gornitzky GNY and Head of its International Arbitration Practice, said, “Cooperation between international arbitration institutions such as the ICA and the IICA is a natural development in the context of the growing commercial ties between India and Israel.”
He adds, “It is expected to strengthen confidence among investors and companies operating across both jurisdictions. The existence of a mutually recognized and professional dispute resolution framework – institutional arbitration – signals to investors that, alongside the broader economic and governmental support for bilateral commerce, there is also a reliable legal infrastructure for resolving disputes should they arise.”
He further pointed to the broader economic implications of strengthening dispute resolution mechanisms, noting that legal predictability often plays a decisive role in shaping investor confidence and cross-border investment decisions.
“Based on accumulated international experience, greater legal certainty and a lower perceived risk profile tend to increase investment flows and expand cross-border business activity. In that sense, the ICA–IICA partnership can help reduce the “risk premium” associated with cross-border projects and facilitate market entry and expansion.”
Highlighting the operational advantages of institutional arbitration for cross-border businesses, Cohen pointed out that the structure and predictability offered by established arbitration frameworks make them particularly attractive for international companies.
“For companies active internationally, institutional arbitration offers a familiar, flexible, and more confidential framework, reducing the need to navigate unfamiliar domestic court systems and mitigating uncertainty in the event of a dispute.”
He further noted that the agreement reflects broader developments in the global arbitration ecosystem, where institutions are increasingly collaborating to support international trade and investment.
“More broadly, the MoU reflects a wider global trend of building professional bridges between leading institutions, with the aim of providing businesses in both countries with a credible and internationally oriented framework for cross-border commercial dispute resolution, thereby reinforcing investor confidence.”
Cohen also serves as Vice Chairman of the Litigation Committee of the Bar Association and is a member of the International Arbitration Rules Committee of the Israeli Institution for Commercial Arbitration.
