Do they have arranged marriages in israel?

Not always.

Another answer:There are various levels of "arranged". To have a marriage in which the young couple had no say in it (as is done in certain other cultures) is rare in Judaism, since the Halakha forbids it. Rather, the parents and matchmaker try to present their son/daughter with what they believe will be a good spouse; and the final decision is in the hands of the youngsters themselves. It is well-known that divorce rates are lower in these circumstances.