Arabs (excluding those living in the Palestinian Territories) make up almost 20% of Israel's population. The proposed city would be located near the Sea of Galilee and would be designed to provide young families with affordable homes. The proposal got a positive response from an Israeli Arab in the local government.
Though the news from the region was not all positive. The Israeli government also announced plans for more than 1,000 new homes in East Jerusalem - one of the areas claimed by Palestinians as part of their proposed state. According to the Annapolis agreement signed last December and the "Roadmap to Peace" backed by international negotiators, Israel is suppose to freeze the construction of housing projects on disputed lands.
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