Abstract
State of Israel had been declared on Palestine at May 15, 1948. The new state was established between Arab societies which have different traditions, customs and religions. For developing its economy in this strange environment, Israel offer many incentives for Jews and Non-Jews investors to invest in. At the same time, Israel try to make a demographic balance between Arabs and Jews in Occupied Palestine by emptying Palestine from Palestinian and replace them by Jewish immigrants from around the world using various incentive policies. The main obstacle faced Israeli economy is the political stability which is absence in Palestine. This paper analysed the economic, demographic balance policies and other incentives in detail.
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