Following the 1967 annexation, Israel conducted a census in East Jerusalem and granted permanent Israeli residency to those Arab Jerusalemites present at the time of the census. Those not present lost the right to reside in Jerusalem. Jerusalem Palestinians were permitted to apply for Israeli citizenship, provided they met the requirements for naturalization -- such as swearing allegiance to Israel and renouncing all other citizenships -- which most of them refused to do. At the end of 2005, 93% of the Arab population of East Jerusalem had permanent residency and 5% had Israeli citizenship.
[21]
As residents, East Jerusalemites rejecting Israeli citizenship have the right to vote in municipal elections and play a role in the administration of the city. Residents pay taxes, and following a 1988
Israeli Supreme Court ruling, East Jerusalem residents are guaranteed the right to social security benefits and state health care.
Until 1995, those who lived abroad for more than seven years or obtained residency or citizenship in another country were deemed liable to lose their residency status. In 1995, Israel began revoking permanent residency status from former Arab residents of Jerusalem who could not prove that their "center of life" was still in Jerusalem. This policy was rescinded four years later after it was discovered that more Arabs were moving back in order to retain their status. In March 2000, the Minister of the Interior, Natan Sharansky, stated that the "quiet deportation" policy would cease, the prior policy would be reverted, and Arab natives to Jerusalem would be able to regain residency
[22] if they could prove that they have visited Israel at least once every three years. Since December 1995, permanent residency of more than 3,000 individuals "expired," leaving them with neither citizenship nor residency.
[22] Despite changes in policy under Sharansky, in 2006 the number of former Arab Jerusalemites to lose their residency status was 1,363, a sixfold increase on the year before.
[23] The loss of status is automatic and sometimes occurs without their knowledge.
According to the Israeli human rights organization B'Tselem, since the 1990s, policies that made construction permits harder to obtain for Arab residents have caused a housing shortage which force many of them to seek housing outside East Jerusalem.
[24] Furthermore, East Jerusalem residents that are married to residents of the
West Bank and
Gaza have had to leave Jerusalem to join their husbands and wives due to the
citizenship law. Furthermore, many have had to leave Jerusalem in search of work abroad since, in the aftermath of the
Second Intifada East Jerusalem has increasingly been cut off from the West Bank and thereby has lost its main economic hub.
[25] Israeli journalist Shahar Ilan argues that this outmigration has led many Palestinians in East Jerusalem to lose their permanent residency status.
[26]
According to the
American Friends Service Committee and
Marshall J. Breger, such restrictions on Palestinian planning and development in East Jerusalem are part of Israel's policy of promoting a Jewish majority in the city.
[27][28] On May 13, 2007, the Israeli Cabinet began discussion regarding a proposition to expand Israel's presence in East Jerusalem and boost its economy so as to attract Jewish settlers. In order to facilitate more Jewish settlement in East Jerusalem, the Cabinet is now considering an approximately 5.75 billion NIS plan to reduce taxes in the area, relocate a range of governmental offices, construct new courthouses, and build a new center for Jerusalem studies.
[29] Plans to construct 25,000 Jewish homes in East Jerusalem are in the development stages. As Arab residents are hard-pressed to obtain building permits to develop existing infrastructure or housing in East Jerusalem, this proposition has received much criticism.