• While the Arab economy is ostensibly integrated into the national economy of Israel, in

practical terms it is largely segregated.

• There are considerable differences in the level of economic development in the Jewish and

Arab sectors. These differentials are reflected in statistics on income, employment, economic

development, industrialization, and socio-economic status.

• One of the causes is the low level of industrialization in the Arab economy compared to the

Jewish one. At the time of the establishment of the state in 1948, most of the Arab population

that remained in Israel worked in farming, in contrast to the more highly industrialized Jewish

economy.

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