Background: Following World War II the British withdrew from their mandate of Palestine and the UN partitioned the area into Arab and Jewish states an arrangement rejected by the Arabs. Subsequently the Israelis defeated the Arabs in a series of wars without ending the deep tensions between the two sides. The territories Israel occupied since the 1967 war are not included in the Israel country profile unless otherwise noted. On 25 April 1982 Israel withdrew from the Sinai pursuant to the 1979 Israel-Egypt Peace Treaty. Israel and Palestinian officials signed on 13 September 1993 a Declaration of Principles (also known as the 'Oslo Accords') guiding an interim period of Palestinian self-rule. Outstanding territorial and other disputes with Jordan were resolved in the 26 October 1994 Israel-Jordan Treaty of Peace. In addition on 25 May 2000 Israel withdrew unilaterally from southern Lebanon which it had occupied since 1982. In keeping with the framework established at the Madrid Conference in October 1991 bilateral negotiations were conducted between Israel and Palestinian representatives and Syria to achieve a permanent settlement. In April 2003 US President BUSH working in conjunction with the EU UN and Russia - the 'Quartet' - took the lead in laying out a roadmap to a final settlement of the conflict by 2005 based on reciprocal steps by the two parties leading to two states Israel and a democratic Palestine. However progress toward a permanent status agreement was undermined by Israeli-Palestinian violence between September 2003 and February 2005. An Israeli-Palestinian agreement reached at Sharm al-Sheikh in February 2005 along with an internally-brokered Palestinian ceasefire significantly reduced the violence. In the summer of 2005 Israel unilaterally disengaged from the Gaza Strip evacuating settlers and its military. The election of HAMAS in January 2006 to head the Palestinian Legislative Council froze relations between Israel and the Palestinian Authority. Ehud OLMERT became prime minister in March 2006; following an Israeli military operation in Gaza in June-July 2006 he shelved plans to unilaterally evacuate from most of the West Bank. The kidnapping of two Israeli soldiers by Lebanese Hizballah led to a 34-day conflict in Lebanon in June-August 2006.

Geographic coordinates: 31 30 N 34 45 E

Map reference: Middle East

Area
Total: 20,770 km²
Land: 20,330 km²
Water: 440 km²
Comparative: slightly smaller than New Jersey

Land boundaries
Total: 1,017 km
Border countries: (6) Egypt 266 km; , Gaza Strip 51 km; , Jordan 238 km; , Lebanon 79 km; , Syria 76 km; , West Bank 307 km

Coastline: 273 km

Maritime claims
Territorial sea: 12 nm
Continental shelf: to depth of exploitation

Climate: temperate; hot and dry in southern and eastern desert areas

Terrain: Negev desert in the south; low coastal plain; central mountains; Jordan Rift Valley

Elevation
Extremes lowest point: Dead Sea -408 m
Extremes highest point: Har Meron 1,208 m

Natural resources: timber potash copper ore natural gas phosphate rock magnesium bromide clays sand

Land use
Arable land: 15.45%
Permanent crops: 3.88%
Other: 80.67% (2005)

Irrigated land: 1940 km² (2003)

Natural hazards: sandstorms may occur during spring and summer; droughts; periodic earthquakes

Geography
Note: there are 242 Israeli settlements and civilian land use sites in the West Bank 42 in the Israeli-occupied Golan Heights 0 in the Gaza Strip and 29 in East Jerusalem (August 2005 est.); Sea of Galilee is an important freshwater source

Population
Note: includes about 187,000 Israeli settlers in the West Bank, about 20,000 in the Israeli-occupied Golan Heights, and fewer than 177,000 in East Jerusalem (July 2006 est.)
Growth rate: 1.154% (2006 est.)
Below poverty line: 21% (2005)

Nationality
Noun: Israeli
Adjective: Israeli

Ethnic groups: Jewish 76.4% (of which Israel-born 67.1% Europe/America-born 22.6% Africa-born 5.9% Asia-born 4.2%) non-Jewish 23.6% (mostly Arab) (2004)

Languages: Hebrew (official) Arabic used officially for Arab minority English most commonly used foreign language

Religions: Jewish 76.4% Muslim 16% Arab Christians 1.7% other Christian 0.4% Druze 1.6% unspecified 3.9% (2004)

Age structure
0-14 years: 26.1% (male 858,246/female 818,690)
15-64 years: 64.2% (male 2,076,649/female 2,046,343)
65 years and over: 9.8% (male 269,483/female 357,268) (2006 est.)

Median age
Total: 29.9 years
Male: 29.1 years
Female: 30.8 years (2006 est.)

Population growth rate: 1.154% (2006 est.)

Birth rate: 17.97 births/1000 population (2006 est.)

Death rate: 6.18 deaths/1000 population (2006 est.)

Net migration rate: 0 migrant(s)/1000 population (2006 est.)

Environment
Current issues: limited arable land: and natural fresh water resources pose serious constraints; desertification; air pollution from industrial and vehicle emissions; groundwater pollution from industrial and domestic waste chemical fertilizers and pesticides
International agreements party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling
International agreements signed but not ratified: Marine Life Conservation

Sex ratio
At birth: 1.05 male/female
Under 15 years: 1.05 male/female
15-64 years: 1.01 male/female
65 years and over: 0.75 male/female
Total population: 0.99 male/female (2006 est.)

Infant mortality rate
Total: 6.89 deaths/1000 live births
Male: 7.61 deaths/1000 live births
Female: 6.14 deaths/1000 live births (2006 est.)

Life expectancy at birth
Total population: 79.46 years
Male: 77.33 years
Female: 81.7 years (2006 est.)

Total fertility rate: 2.41 children born/woman (2006 est.)

Hivaids
Adult prevalence rate: 0.1% (2001 est.)
People living with hivaids: 3,000 (1999 est.)
Deaths: 100 (2001 est.)

Literacy
Definition: age 15 and over can read and write
Total population: 95.4%
Male: 97.3%
Female: 93.6% (2003 est.)

Country name
Conventional long form: State of Israel
Conventional short form: Israel
Local long form: Medinat Yisra'el
Local short form: Yisra'el

Government type: parliamentary democracy

Capital
Name: Jerusalem; note - Israel proclaimed Jerusalem as its capital in 1950, but the US, like nearly all other countries, maintains its Embassy in Tel Aviv
Geographic coordinates: 32 05 N, 34 48 E
Time difference: UTC+2 (7 hours ahead of Washington, DC during Standard Time)
Daylight saving time: +1hr, begins last Friday in March; ends the Sunday between the holidays of Rosh Hashana and Yom Kippur

Administrative divisions: 6 districts (mehozot singular - mehoz); Central Haifa Jerusalem Northern Southern Tel Aviv

Independence: 14 May 1948 (from League of Nations mandate under British administration)

National holiday: Independence Day 14 May (1948); note - Israel declared independence on 14 May 1948 but the Jewish calendar is lunar and the holiday may occur in April or May

Constitution: no formal constitution; some of the functions of a constitution are filled by the Declaration of Establishment (1948) the Basic Laws of the parliament (Knesset) and the Israeli citizenship law

Legal system: mixture of English common law British Mandate regulations and in personal matters Jewish Christian and Muslim legal systems; in December 1985 Israel informed the UN Secretariat that it would no longer accept compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Executive branch
Chief of state: President Moshe KATZAV (since 31 July 2000)
Head of government: Prime Minister Ehud OLMERT (since May 2006); Deputy Prime Minister Tzipora 'Tzipi' LIVNI (since May 2006)
Cabinet: Cabinet selected by prime minister and approved by the Knesset
Elections: president is largely a ceremonial role and is elected by the Knesset for a seven-year term (no term limits); election last held 31 July 2000 (next to be held mid-2006); following legislative elections, the president assigns a Knesset member - traditionally the leader of the largest party - the task of forming a governing coalition
Election results: Moshe KATZAV elected president by the 120-member Knesset with a total of 60 votes, other candidate, Shimon PERES, received 57 votes (there were three abstentions); Ariel SHARON continued as prime minister after Likud Party victory in January 2003 Knesset elections; Likud won 38 seats and then formed coalition government with Shinui, the National Religious Party, and the National Union; controversy surrounding SHARON's disengagement plan ultimately led to the formation of a Likud-Labor-United Torah Judaism (UTJ) coalition government in January 2005

Legislative branch
Elections: last held 29 March 2006 (next scheduled to be held in 2010)
Election results: percent of vote by party - NA; seats by party - Kadima 29, Labor 19, Likud 12, SHAS 12, Yisrael Beiteinu 11, NU/NRP 9, GIL 7, Torah and Shabbat Judaism 6, Meretz-YAHAD 5, United Arab List 4, Balad 3, HADASH 3

Judicial branch: Supreme Court (justices appointed by Judicial Selection Committee - made up of all three branches of the government; mandatory retirement age is 70)

Political parties and leaders: Democratic Front for Peace and Equality (HADASH) [Muhammad BARAKA]; GIL (Pensioners) [Rafael EITAN]; Kadima [Ehud OLMERT]; Labor Party [Amir PERETZ]; Likud Party [Binyamin NETANYAHU]; Meretz-YAHAD [Yossi BEILIN]; National Democratic Assembly (Balad) [Azmi BISHARA]; National Union (NU)/National Religious Party (NRP) [Binyamin ELON]; SHAS [Eliyahu YISHAI]; Torah and Shabbat Judaism [Yaakov LITZMAN]; United Arab List [Ibrahim SARSOUR]; Yisrael Beiteinu [Avigdor LIEBERMAN]; Yisrael Ba'Aliya (merged with Likud)

International organization participation: BIS BSEC (observer) CERN (observer) EBRD FAO IADB IAEA IBRD ICAO ICC ICFTU IDA IFAD IFC IFRCS ILO IMF IMO Interpol IOC IOM IPU ISO ITU MIGA OAS (observer) OPCW (signatory) OSCE (partner) PCA UN UNCTAD UNESCO UNHCR UNIDO UPU WCO WHO WIPO WMO WToO WTO

Diplomatic representation
In the us chief of mission: Ambassador Salai MERIDOR
In the us chancery: 3,514 International Drive NW, Washington, DC 20,008
In the us telephone: [1] (202) 364-5,500
In the us fax: [1] (202) 364-5,607
In the us consulates general: Atlanta, Boston, Chicago, Houston, Los Angeles, Miami, New York, Philadelphia, San Francisco
From the us chief of mission: Ambassador Richard H. JONES
From the us embassy: 71 Hayarkon Street, Tel Aviv 63,903
From the us mailing address: PSC 98, Box 29, APO AE 9,830
From the us telephone: [972] (3) 519-7,575
From the us fax: [972] (3) 516-4,390
From the us consulates general: Jerusalem; note - an independent US mission, established in 1928, whose members are not accredited to a foreign government

Flag description: white with a blue hexagram (six-pointed linear star) known as the Magen David (Shield of David) centered between two equal horizontal blue bands near the top and bottom edges of the flag

Economy overview: Israel has a technologically advanced market economy with substantial government participation. It depends on imports of crude oil grains raw materials and military equipment. Despite limited natural resources Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Israel imports substantial quantities of grain but is largely self-sufficient in other agricultural products. Cut diamonds high-technology equipment and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable current account deficits which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US which is its major source of economic and military aid. The bitter Israeli-Palestinian conflict; difficulties in the high-technology construction and tourist sectors; and fiscal austerity in the face of growing inflation led to small declines in GDP in 2001 and 2002. The economy rebounded in 2003 and 2004 growing at a 4% rate each year as the government tightened fiscal policy and implemented structural reforms to boost competition and efficiency in the markets. In 2005 rising consumer confidence tourism and foreign direct investment - as well as higher demand for Israeli exports - boosted GDP by 4.7%.

Real gdp purchasing power parity: $156.9 billion (2005 est.)

Real gdp growth rate: 5.2% (2005 est.)

Real gdp per capita: $25,000 (2005 est.)

Gdp composition by sector of origin
Agriculture: 2.6%
Industry: 31.7%
Services: 65.7% (2003 est.)

Agriculture products: citrus vegetables cotton; beef poultry dairy products

Industries: high-technology projects (including aviation communications computer-aided design and manufactures medical electronics fiber optics) wood and paper products potash and phosphates food beverages and tobacco caustic soda cement construction metals products chemical products plastics diamond cutting textiles footwear

Industrial production growth rate: 2.8% (2005 est.)

Labor force: 2.42 million (2005 est.)
By occupation: agriculture forestry and fishing 2.6% manufacturing 20.2% construction 7.5% commerce 12.8% transport storage and communications 6.2% finance and business 13.1% personal and other services 6.4% public services 31.2% (1996)

Unemployment rate: 9% (2005 est.)

Population below poverty line: 21% (2005)

Household income or consumption by percentage share
Lowest 10: 2.4%
Highest 10: 28.3% (1997)

Distribution of family income gini index: 34 (2005)

Budget
Revenues: $43.82 billion
Expenditures: $58.04 billion; including capital expenditures of $N/A (2005 est.)

Public debt: 99.7% of GDP (2005 est.)

Fiscal year: calendar year

Inflation rate consumer prices: 1.3% (2005 est.)

Current account balance: $2.385 billion (2005 est.)

Exports: $40.14 billion f.o.b. (2005 est.)
Commodities: machinery and equipment software cut diamonds agricultural products chemicals textiles and apparel
Partners: US 36.5% Belgium 8.7% Hong Kong 5.6% (2005)

Imports: $43.19 billion f.o.b. (2005 est.)
Commodities: raw materials military equipment investment goods rough diamonds fuels grain consumer goods
Partners: US 13.4% Belgium 10.1% Germany 6.4% UK 5.7% Switzerland 5.5% China 4.2% (2005)

Reserves of foreign exchange and gold: $28.06 billion (2005 est.)

Debt external: $75.55 billion (2005 est.)

Exchange rates: new Israeli shekels per US dollar - 4.4877 (2005) 4.482 (2004) 4.5541 (2003) 4.7378 (2002) 4.2057 (2001)

Electricity
Production: 44.24 billion kWh (2003)
Consumption: 39.67 billion kWh (2003)
Exports: 1.47 billion kWh (2003)
Imports: 0 kWh (2003)

Natural gas
Production: 200 million m³ (2003 est.)
Consumption: 200 million m³ (2003 est.)
Exports: 0 m³ (2001 est.)
Imports: 0 m³ (2001 est.)
Proven reserves: 38.94 billion m³ (1 January 2002)

Telephones
Main lines in use: 2,936,300 (2005)
Mobile cellular: 7.757 million (2005)

Telephone system
General assessment: most highly developed system in the Middle East although not the largest
Domestic: good system of coaxial cable and microwave radio relay; all systems are digital
International: country code - 972; 3 submarine cables; satellite earth stations - 3 Intelsat (2 Atlantic Ocean and 1 Indian Ocean)

Internet
Country code: .il
Hosts: 1,251,881 (2006)
Users: 3.7 million (2006)

Military expenditures
Percent of gdp: 7.7% (2005 est.)

Military service age and obligation: 17 years of age for compulsory (Jews Druzes) and voluntary (Christians Muslims Circassians) military service; both sexes are eligible for military service; conscript service obligation - 36 months for men 21 months for women (2004)

Airports: 53 (2006)
With paved runways total: 30
With paved runways over 3047 m: 2
With paved runways 2438 to 3047 m: 4
With paved runways 15-24 to 2437 m: 8
With paved runways 914 to 1523 m: 10
With paved runways under 914 m: 6 (2006)
With unpaved runways total: 23
With unpaved runways 15-24 to 2437 m: 1
With unpaved runways 914 to 1523 m: 2
With unpaved runways under 914 m: 20 (2006)

Heliports: 3 (2006)

Pipelines: gas 193 km; oil 442 km; refined products 261 km (2006)

Railways
Total: 853 km
Standard gauge: 853 km 1.435-m gauge (2005)

Roadways
Total: 17,364 km
Paved: 17,364 km (including 126 km of expressways) (2004)

Merchant marine
Total: 18 ships (1000 GRT or over) 716,382 GRT/845,053 DWT
By type: cargo 2, container 16
Registered in other countries: 51 (Bahamas 1, Bermuda 3, Cyprus 3, Honduras 1, Liberia 5, Malta 23, Panama 6, Saint Vincent and the Grenadines 2, Slovakia 7) (2006)

Ports and terminals: Ashdod Elat (Eilat) Hadera Haifa

Disputes international: West Bank and Gaza Strip are Israeli-occupied with current status subject to the Israeli-Palestinian Interim Agreement - permanent status to be determined through further negotiation; Israel continues construction of a 'seam line' separation barrier along parts of the Green Line and within the West Bank; Israel withdrew its settlers and military from the Gaza Strip and from four settlements in the West Bank in August 2005; Golan Heights is Israeli-occupied (Lebanon claims the Shab'a Farms area of Golan Heights); since 1948 about 350 peacekeepers from the UN Truce Supervision Organization (UNTSO) headquartered in Jerusalem monitor ceasefires supervise armistice agreements prevent isolated incidents from escalating and assist other UN personnel in the region

Refugees and internally displaced persons
Idps: 276,000 (Arab villagers displaced from homes in northern Israel) (2005)

Illicit drugs: increasingly concerned about cocaine and heroin abuse; drugs arrive in country from Lebanon and increasingly from Jordan; money-laundering center