Tel Aviv is the most important city in Israel, the economic center, and the seat of embassies, similar to Shanghai in China. Tel Aviv-Jaffa, often shortened to Tel Aviv or Tel Aviv, is the second largest city in Israel. It is predominantly Jewish, with Arabs making up about 4% of the population.
Jerusalem, the capital and political, economic, cultural and transportation center of Israel and Palestine***, the capital of the Jerusalem district and the largest city in the former Palestine. 1980, Israeli legislation recognized Jerusalem as the country's "eternal and indivisible capital". Most countries have their embassies in Tel Aviv, and in 1988 the Palestinian Autonomous Government declared Jerusalem to be the capital of the State of Palestine. Currently Jerusalem is the capital of Israel.