Arabs in israel- overview

As of 2024, Arab citizens represent approximately 21% of Israel’s total population—around 2.1 million individuals—living mainly in the Galilee, the Negev, and the Triangle region. This population includes Muslims, Christians, Druze, and Bedouins, forming a vibrant, diverse community. Despite significant contributions to the state, Arab citizens continue to face systemic inequality and structural barriers that hinder their full economic and civic participation.

The gap between Jewish and Arab citizens in Israel is both persistent and wide-ranging. The following data points illustrate the scope of the challenge:

These figures underscore the reality that many Arab communities remain in the lowest socioeconomic clusters and are underserved in terms of infrastructure, employment opportunities, and access to capital. 

The primary challenges facing Arab society in Israel include:

• Housing Deficit: An estimated 100,000 housing units are missing in Arab towns, leaving nearly one in four households without proper housing solutions.  
• Limited Access to Capital: Arab entrepreneurs receive only 7% of all SME credit in Israel, while venture capital penetration remains minimal.  
• Underemployment and Low Income: Although Arab citizens are increasingly represented in healthcare and education, many remain employed in low-wage, manual labor sectors.  
• Educational Inequality: Arab students are underrepresented in universities and particularly in STEM fields. Academic infrastructure in Arab localities is underdeveloped, with just two colleges located in Arab communities and no major universities.  

Over the past decade, a significant shift has occurred in the approach to Arab socioeconomic development. Government, financial institutions, the innovation sector, and civil society have all launched major initiatives aimed at reducing disparities and enabling sustainable growth:

 These programs have supported everything from industrial zones and education reform to tech incubation and female workforce participation.

Thanks to these collective investments and policy shifts, the past decade has brought measurable improvements in Arab society:

1. Increased Economic Contribution: The share of GDP generated by Arab citizens rose from 8.2% to 10.5%.  
2. Poverty Reduction: The Arab poverty rate dropped from 54% to 39% — a meaningful though still insufficient improvement.  
3. Improved Local Economies: 90% of the localities that saw a rise in their socioeconomic cluster rating over the past decade were Arab towns and villages.  

These advancements reflect both the potential within Arab society and the impact of targeted investment when implemented with accountability and community involvement.

The case for investing in Arab society is not only a moral or social imperative—it is an economic one. Arab citizens are young, increasingly educated, and underutilized in Israel’s innovation economy. Closing the gap between Arabs and Jews in employment, education, and income would not only lift communities out of poverty but also significantly boost Israel’s overall GDP and resilience.Tamkeen seeks to build on this momentum through scalable, impact-oriented projects that are tailored to the needs and assets of Arab society. By promoting evidence-based planning, sustainable business models, and robust partnerships across sectors, Tamkeen aims to transform existing disparities into inclusive growth opportunities.