The Jewish National Fund is a private organization established in 1901 to buy and develop land in the Land of Israel for Jewish settlement; land purchases were funded by donations from world Jewry exclusively for that purpose.[164] The JNF currently owns 13% of land in Israel,[165][166] while 79.5% is owned by the government (this land is leased on a non-discriminatory basis)[citation needed], and the rest, around 6.5%, is evenly divided between private Arab and Jewish owners.[167] Thus, the ILA administers 93.5% of the land in Israel (Government Press Office, Israel, 22 May 1997). A significant portion of JNF lands were originally properties left behind by Palestinian "absentees" and as a result the legitimacy of some JNF land ownership has been a matter of dispute.[164][168][169][170] The JNF purchased these lands from the State of Israel between 1949 and 1953, after the state took control of them according to the Absentee Properties Law.[171][172] While the JNF charter specifies the land is for the use of the Jewish People, land has been leased to Bedouin herders.[173] Nevertheless, JNF land policy has been criticized as discrimination.[171] When the Israel Land Administration leased JNF land to Arabs, it took control of the land in question and compensated the JNF with an equivalent amount of land in areas not designated for development (generally in the Galilee and the Negev), thus ensuring that the total amount of land owned by the JNF remains the same.[172][174] This was a complicated and controversial mechanism, and in 2004 use of it was suspended. After Supreme Court discussions and a directive by the Attorney General instructing the ILA to lease JNF land to Arabs and Jews alike, in September 2007 the JNF suggested reinstating the land-exchange mechanism.[172][175]
While the JNF and the ILA view an exchange of lands as a long-term solution, opponents say that such maneuvers privatize municipal lands and preserve a situation in which significant lands in Israel are not available for use by all of its citizens.[166] As of 2007, the High Court delayed ruling on JNF policy regarding leasing lands to non-Jews,[166] and changes to the ILA-JNF relationship were up in the air.[172] Adalah and other organizations furthermore express concern that proposed severance of the relation between the ILA and JNF, as suggested by Ami Ayalon, would leave the JNF free to retain the same proportion of lands for Jewish uses as it seeks to settle hundreds of thousands of Jews in areas with a tenuous Jewish demographic majority (in particular, 100,000 Jews in existing Galilee communities[171] and 250,000 Jews in new Negev communities via the Blueprint Negev[176]).
The Israel Land Administration, which administers 93% of the land in Israel (including the land owned by the Jewish National Fund), refuses to lease land to non-Jewish foreign nationals, which includes Palestinian residents of Jerusalem who have identity cards but are not citizens of Israel. When ILA land is "bought" in Israel it is actually leased to the "owner" for a period of 49 years. According to Article 19 of the ILA lease, foreign nationals are excluded from leasing ILA land, and in practice foreigners may just show that they qualify as Jewish under the Law of Return.[177]
Israeli law also discriminates between Jews and Arabs regarding rights to recover property owned before the dislocations created by the 1948 Arab-Israeli War.[15][dead link] The 1950 Absentees Property Law stipulated that any property within post-war Israel which was owned by an Arab who had left the country between 29 November 1947 and 19 May 1948, or by a Palestinian who had merely been abroad or in area of Palestine held by hostile forces up to 1 September 1948, lost all rights to that property. Palestinians who fled or were expelled from their homes by Jewish or Israeli forces, before and during the 1948 Arab-Israeli war, but remained within the borders of what would become Israel, that is, those currently known as Arab citizens of Israel, are deemed present absentees by the legislation. Present absentees are regarded as absent by the Israeli government because they left their homes, even if they did not intend to leave them for more than a few days, and even if they did so involuntarily.[178]
Following the 1967 Six Day War in which Israel occupied the West Bank, from where it annexed East Jerusalem, Israel then passed in 1970 the Law and Administration Arrangements Law allowing for Jews who had lost property in East Jerusalem and the West Bank during the 1948 war to reclaim it.[16][dead link] Palestinian residents of Jerusalem (absentees) in the same positions, and Arab Israelis (present absentees), who owned property in West Jerusalem or other areas within the state of Israel, and lost it as a result of the 1948 war, cannot recover their properties. Israeli legislation, therefore, allows Jews to recover their land, but not Arabs.