This Article discusses the importance and need for business partners to choose arbitration to resolve their disputes instead of the usual court system. It further discusses the advantages and importance of choosing arbitration in this particular situation for many reasons such as the confidentiality, speed and specialty of arbitrators. Moreover, the writer discusses the case of Palestinian companies in particular and how choosing business partners based on personal relations creates disputes. The writer finishes with giving his recommendations on incorporating arbitration clauses in shareholders agreements and investment regulations in Palestine.