Commercial Arbitration is also an important tool for the growth and development of the economic establishments, particularly small and medium enterprises which constitute 98% of the establishments operating in Palestine. These establishments lack the technical regulation and economic capacities the large enterprises are characterized by and they also face different legal obstacles.
As Palestine lacks the judiciary specialized in commercial disputes resolution, it resorts to the regular judiciary to resolve such disputes. The regular judiciary has complex procedures in addition to the existing congestion in the Palestinian courts. Dispute resolution by commercial arbitration for SMEs is an advantage and help such enterprises in growing and in increasing investment opportunities, especially with the existence of the Palestinian Arbitration Law of 2000 and its Regulation of 2004. In addition, in 2015, Palestine has become a member of the New York Convention of 1958 to implement the provisions of foreign arbitrators reflecting positively on small and medium enterprises in Palestine.