The results of the study show that the Arab local councils in particular encounter many challenges in their efforts after economic growth and prosperity, which imposes restrictions on the ability to develop economic opportunities in the Arab cities compared to the Jewish cities.

The main reason behind the restrictions and the ongoing lack of economic opportunities in Arab cities involves the huge difference in data between the Arab cities and the Jewish cities

It turns out that the percentage of Arabs living in cities is only 45%, while the percentage of Jews living in cities reaches 82%!

Furthermore, the relatively small average for the number of residents in 13 Arab cities does not exceed 42.3 thousand people!

It should also be noted that the survey conducted by the Central Bureau of Statistics in 2019 on 254 local councils shows that:

  • The average collection per citizen in the Arab cities is 894 NIS compared to 3724 NIS in the Jewish cities.
  • The average levy on housing in Arab cities is 46% compared to 76% in Jewish cities.
  • The average size of the area of non-residential buildings on which property tax was imposed in the Arab cities is 34.4% compared to 61% in the Jewish cities.
  • The average property tax revenue from non-residential buildings in Arab cities is 19% compared to 43% in Jewish cities.

Finally, the data of the Ministry of the Interior show that there is an accountant accompanying about 73% of the Arab cities compared to only 10% in the Jewish cities.

All of these and other data have a direct and sweeping effect on the ability to develop economic opportunities in the Arab cities

Very disturbing results appeared in the latest research conducted by the Arab Economic Forum on opening up economic opportunities in the Arab community

The latest results of the Arab Economic Forum’s research indicate that the Arab local authorities alike face many challenges in their quest to secure growth and economic development, which negatively reflects on the possibility of opening up economic opportunities in the Arab towns compared to the Jewish towns.

** The strong difference in data between Arab and Jewish towns is a major reason and a deterrent to escalating challenges facing Arab local authorities in particular in the long run**

As the percentage of Arabs who live in cities is only approximately 45%, compared to the percentage of Jews, which reaches more than 82%!

In addition to the relatively small size of the average population in the 13 Arab cities, which does not exceed 42.3 thousand people!

Among the budget data for the year 2019, which was conducted by the Central Statistics Department for 254 local authorities:

  • The rate of collection per citizen in the Arab towns is 894 shekels, compared to 3724 shekels in the Jewish towns.
  • The rate of taxation on housing in Arab towns is 46% compared to 76% in Jewish towns.
  • The average area of non-residential buildings imposed on Arnona in Arab towns is 34.4% compared to 61% in Jewish towns.
  • The rate of income from the Arnona from non-residential buildings in the Arab towns is 19% compared to 43% in the Jewish towns.

In addition, the data of the Ministry of the Interior indicate that there is an accompanying accountant in approximately 73% of the Arab local authorities, compared to only 10% of the Jewish local authorities!

Not to mention that the Arab local authorities mostly depend on government funding compared to the Jewish local authorities, as 71.4% of the incomes of the Arab local authorities depend on government funding compared to 44.2% of the Jewish local authorities.

All these data and more have a direct impact on the ability to produce economic opportunities in Arab towns

Browse the full paper