Regavim Expose’: The Illegal Palestinian Stealth Buy-Out of Jerusalem

July 16, 2025

5 min read

Israeli bullldozers demolish an under-construction Palestinian building in the village of Sur Baher, East Jerusalem on November 23, 2021. Photo by Flash90

In a new and startling investigation, the Regavim Movement, a non-governmental organization dedicated to preserving Israeli sovereignty, has uncovered the Palestinian Authority’s (PA) long-standing efforts to establish autonomy in Jerusalem by the year 2030. This investigation shines a light on a systematic mechanism that the PA has built over the years to bypass Israeli law, with the goal of embedding a governance apparatus that directly competes with Israel’s sovereignty in the city. This development takes place in the heart of Jerusalem, particularly in its eastern districts, and poses a serious challenge to Israel’s control over its capital.

PA’s Governance Machinery in Jerusalem

Regavim’s research reveals that the PA has been operating a significant and clandestine governance structure in East Jerusalem for over a decade, all in violation of the Oslo Accords, which explicitly restrict Palestinian Authority activities to areas in Judea and Samaria. The PA’s Ministry for Jerusalem Affairs acts as a governmental arm within Israel’s capital, with an annual budget in the tens of millions of shekels. This ministry engages in a range of activities, including offering legal representation, organizing political pressure campaigns, and running a compensation program for residents whose illegal buildings are demolished by Israeli authorities.

According to Regavim, this compensation scheme involves significant financial payouts to Arabs in East Jerusalem who violate Israeli construction laws. These payments range from NIS 15,000 to NIS 52,000 per home, depending on the nature of the illegal construction. Additionally, the PA provides a network of professional services, including lawyers, architects, and engineers, who assist these residents in navigating Israeli courts and construction committees. Such actions directly undermine the authority of Israeli law and reflect a growing Palestinian presence in the city.

The Quiet Erosion of Israeli Sovereignty

Regavim’s findings suggest that Israel’s sporadic enforcement of construction laws in East Jerusalem has led to a gradual erosion of its sovereignty. “Where the State of Israel is absent, hostile entities step in and shape reality by creating tangible facts on the ground,” stated Regavim’s Meir Deutsch. The PA is stepping into this vacuum, filling the void left by Israel’s lack of action, and establishing itself as the de facto authority in East Jerusalem. Foreign governments and international organizations, through substantial financial backing, have indirectly enabled this process by supporting the PA’s activities.

Moreover, since Israel reunified Jerusalem in 1967, a significant number of illegal Arab housing units and extensions have been constructed in East Jerusalem. While only a fraction of these structures have been demolished, the PA’s compensation program and legal support network help ensure that construction violators are financially shielded and encouraged to continue their illegal activities.

Israeli security forces destroy a building that was built without a permit in the east Jerusalem neighborhood of Beit Hanina, February 20, 2024. Photo by Jamal Awad/Flash90

PA’s Rejection of the Oslo Accords

The Palestinian Authority’s actions in Jerusalem stand in direct violation of the Oslo Accords, agreements signed by both Israel and the Palestinian leadership in the 1990s, which set forth the terms of Palestinian self-rule and prohibited the PA from engaging in political or governmental activities within Israeli borders. These accords were designed to lay the groundwork for future negotiations on the status of territories in Judea and Samaria, and Jerusalem was meant to remain under Israeli control.

However, the PA’s defiance of these agreements in Jerusalem underscores its broader rejection of the Oslo framework. Palestinian President Mahmoud Abbas has repeatedly violated the terms of the accords by allowing his Ministry for Jerusalem Affairs to operate within Israeli-controlled territory. The ministry has been active in collecting taxes, issuing permits for real estate transactions, and involving itself in the education system in East Jerusalem—all actions that are clearly prohibited under the Oslo Accords.

Israel’s Response and Legislative Efforts

Israel’s response to the PA’s actions has been marked by frustration and inaction. Regavim has been calling for legislative action to counter the PA’s growing influence in Jerusalem. The organization advocates for the creation of laws that would deduct PA compensation payments from the Palestinian Authority’s tax revenues. In addition, it is pushing for a criminal ban on all PA activities within the city, including those carried out by private organizations, contractors, and consultants affiliated with the PA. Regavim also calls for the establishment of a task force made up of Israeli agencies such as the Shin Bet, National Security Council, and the Jerusalem Municipality to tackle the issue head-on.

Recently, Knesset Member Yitzhak Kroizer presented amendments to existing Israeli laws to prevent PA involvement in Jerusalem, granting the National Security Minister the authority to enforce these laws. These changes would also impose severe penalties on PA officials operating in the city, signaling a clear Israeli intent to curb the PA’s growing influence.

Israel’s Annexation of Jerusalem

While the Palestinian Authority has been quietly expanding its influence in East Jerusalem, Israel formally annexed the entire city after the 1967 Six-Day War. In contrast to the PA’s attempts at creating an alternative governance structure, Israel has maintained full sovereignty over Jerusalem, declaring it the undivided capital of the Jewish state. The Israeli government has built a robust infrastructure throughout the city, including settlements, roads, and schools, while also ensuring that Jewish and Arab residents live side by side under Israeli law.

Despite this, the international community has been divided over the status of Jerusalem. Some countries recognize Israel’s sovereignty over the entire city, while others continue to treat East Jerusalem as an occupied territory, demanding it become the capital of a future Palestinian state. The PA’s growing influence and its ongoing campaign to challenge Israeli sovereignty in the eastern parts of the city only fuel this diplomatic divide, complicating any hopes for a lasting peace agreement between Israelis and Palestinians.

Regavim’s Call for Action

As the Palestinian Authority continues to entrench its position in East Jerusalem, Regavim urges Israel to take decisive action before it is too late. The organization believes that Israel must be proactive in asserting its sovereignty over the entire city, recognizing that the current situation—where the PA is creating facts on the ground—undermines the very foundations of Israeli governance in Jerusalem.

Security forces guard while Israeli authorities demolish a building that was built without a permit, in the East Jerusalem Neighborhood of Beit Hanina, November 7, 2022. Photo by Jamal Awad/Flash90

Yehuda Na’am, Regavim’s Jerusalem coordinator, emphasized that Israel cannot afford a policy of restraint or indifference. “We must acknowledge that there is a battle over control of Jerusalem,” he said. “The Palestinian Authority is daily entrenching its grip on the city through a well-oiled system of financial support and legal advocacy. The time to act is now.”

The Palestinian Authority’s covert and systematic efforts to undermine Israeli control over Jerusalem represent a serious threat to Israel’s sovereignty. While the PA’s activities directly violate international agreements and Israeli law, Israel’s failure to consistently enforce its own regulations in East Jerusalem has allowed the situation to deteriorate. As international diplomatic pressure continues, Israel must be vigilant and decisive in securing its capital for future generations.

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