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Modern Israel is roughly located on the site of the ancient kingdoms of Israel and Judah. The area (also known as Land of Israel and as Palestine) is the birthplace of the Hebrew language and of the Abrahamic religions, and contains sites sacred to Judaism, Christianity, Islam, Samaritanism, Druze and the Bahá'í Faith.

The Land of Israel has come under the sway of various empires and has been home to a variety of ethnicities, but was predominantly Jewish from roughly 1,000 years before the Common Era (BCE) until the 3rd century of the Common Era (CE).[1]

The area became increasingly Christian after the 3rd century, and then largely Muslim following the Islamization of Palestine after the Muslim conquest of the Levant during the 7th century, and had been largely Muslim up to the middle of the 20th century. It was a focal point of conflict between Christianity and Islam between 1096 and 1291, and from the end of the Crusades was part of the Syrian province of first the Mamluk Sultanate and then the Ottoman Empire until the British conquest in 1917.

A Jewish national movement, Zionism, emerged in the late-19th century. Following the British capture of Ottoman territories in the Levant, the Balfour Declaration in World War I and the formation of the Mandate of Palestine, Aliyah (Jewish immigration to the Land of Israel) increased, causing Arab–Jewish tensions and a collision of the Arab and Jewish nationalist movements. Israeli independence in 1948 was marked by massive migration of Jews from both Europe and the Muslim countries to Israel, and of Arabs from Israel, followed by the extensive Arab–Israeli conflict.[2] About 43% of the world's Jews live in Israel today, the largest Jewish community in the world.[3]

Since about 1970, the United States has become the principal ally of Israel. In 1979 an uneasy Egypt–Israel Peace Treaty was signed, based on the Camp David Accords. In 1993, Israel signed Oslo I Accord with the Palestine Liberation Organization, followed by establishment of the Palestinian National Authority and in 1994 Israel–Jordan peace treaty was signed. Despite efforts to finalize the peace agreement, the conflict continues to play a major role in Israeli and international political, social and economic life.

The economy of Israel was initially primarily socialist and the country dominated by social democratic parties until the 1970s. Since then the Israeli economy has gradually moved to capitalism and a free market economy, partially retaining the social welfare system.

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