Human rights groups have documented significant state support for expanding Jewish areas in East Jerusalem – expansions the United Nations has deemed illegal. For example, the Eastern Ring Road, built by Israel at an estimated cost of 950 million shekels ($255 million), facilitates travel between such communities and greater Jerusalem – making it more practical for Israelis to live there.
In the more sensitive Holy Basin areas, the Israeli government spends an average of 38 million shekels ($10 million) per year to protect Israelis living in mainly Arab areas.
Arabs are also seeking to accommodate their expanding population, but few are able to successfully navigate the red tape required to obtain a building permit. As a result, an estimated 50 percent of Arab homes in East Jerusalem are built illegally – about 5 percent of which are demolished every year.
Both sides seek more just regulation of new building that protects their claims to the city as a capital.