...The territorial restructuring of the land has centered around an all-encompassing and expansionist Judaization (de-Arabization) program adopted by the nascent Israeli state. The flight and expulsion of close to 800,000 Palestinian refugees during the 1948 war created large "gaps" in the geography of the land, which the authorities were quick to fill with Jewish migrants and refugees who entered the country en masse during the late 1940s and early 1950s.2 The Judaization program was premised on a hegemonic myth cultivated since the rise of Zionism that the land (ha'aretz) belongs solely to the Jewish people. An exclusive form of territorial ethnonationalism developed in order to quickly "indigenize" immigrant Jews and to conceal, trivialize or marginalize the existence of a Palestinian people on the land prior to the arrival of Zionist Jews...
...With the establishment of the state, the Jewish settlement project swung into full gear with a mission to de-Arabize the country with a drive to control Palestinian Arab land. Prior to 1948, only about seven to eight percent of the country was in Jewish hands, and about ten percent was vested with the representative of the British Mandate. The Israeli state, however, quickly increased its land holdings and it currently owns 92 percent of the state area within the Green Line. The lion's share of this land transfer was based on expropriation of Palestinian refugee property, but even about two-thirds of the land belonging to Palestinians who remained as Israeli citizens was expropriated. At present, Palestinian Arabs, who constitute around 16 percent of Israel's population (including the Druze), own only around three percent of its land.
Legal unidirectionality was a central aspect of Jewish land transfer as Israel created an institutional and legal land regime whereby confiscated land did not merely become state land, but jointly belonged to the entire Jewish people, and was prohibited from being sold. This ensured that all land transfers moved in one direction--from Palestinians to the state--and never vice versa.5
During the 1950s and 1960s, following the transfer of land to the state, more than 700 Jewish settlements were constructed, creating the housing infrastructure for Jewish immigrants who continued to pour into the country. The Jewish Agency and Jewish National Fund, two bodies representing world Jewry, were granted legal rights to settle and develop the land on behalf of the state and the Jewish people.
The upshot was the penetration of Jews into most Palestinian areas, the encirclement of most Palestinian villages by exclusively Jewish settlements (where non-Jews are not permitted to purchase housing), and the practical ghettoization of the Palestinian minority. In the process, the Palestinian citizens of Israel not only lost individual property, but were also dispossessed of many collective territorial assets since nearly all state land was earmarked for Jewish use.
A particularly sophisticated system of exclusion was formulated in rural areas where Jewish settlements were allocated state land by a method known as a "triple contract." Under this arrangement, land is held jointly by the Jewish village, the Israel Land Authority and the Jewish Agency. The landholding powers of the Jewish Agency and the Jewish National Fund create a situation in which Israel's Palestinian citizens effectively are prevented from purchasing, leasing or using land in over 75 percent of the country."