The Jerusalem Arbitration Center (JAC) opened its doors in late 2013. The JAC is the first arbitration center of its kind in the Middle East, and will provide a neutral forum for the resolution of commercial disputes between Israeli, Palestinian and international companies doing business in those countries. The JAC is owned and operated on a joint agreement between ICC Israel and ICC Palestine. It is comprised of a nine-member international arbitration committee (the JAC court), on which the former Secretary General of the International Court of Arbitration of the International Chamber of Commerce, Yves Derains serves as its President.
It is currently estimated that more than US$4 billion in business trades annually between Palestinians and Israelis. With the establishment of the JAC, that amount is expected to expand significantly as a result of having a reliable and trustworthy place for the resolution of disputes. In anticipation of the increased commercial activity and in turn, demand for arbitration expertise, international practitioners have organized capacity-building initiatives in the region, at which international and Palestinian experts and scholars have held forums on topics from how to negotiate an arbitration clause to conducting arbitration hearings.
Both Israeli and Palestinian officials have given their approval and are providing their full support for the JAC, indicating the importance of having a trustworthy mechanism for the resolution of business disputes. Moreover, the JAC, and the arbitration awards it issues, will be recognized and enforced by judicial authorities in Israel and Palestine alike.