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The Arab-Hebrew Theatre was created by a partnership between the Al-Saraya Theater, an Arab theater troupe, and The Local Theatre, a Jewish troupe. Together, the two companies work on independent projects as well as collaborative productions in both Hebrew and Arabic, drawing on the performances of Arab and Jewish artists.

The Arab-Hebrew Theatre of Jaffa claims a unique social and cultural mission, reaching out to diverse audiences to promote greater cultural understanding between Arabic and Jewish communities both locally in Jaffa and across Israel.

The Arab-Hebrew Theater is unique in the Israeli theatrical landscape in its social involvement and style. One of its plays "Lets Dance", received many awards in the Acre Theater Festival, was much acclaimed by the press and was a box-office success running for seven years. Two of its newer plays - "Of Fathers and Daughters" in Hebrew and "Memory" in Arabic - were invited to premiere at the Israel Festival in Jerusalem. The Polish government invited the theater to perform in the Silesia Dance and Theater Center. The theater also took part successfully in numerous international festivals in Europe.