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Most of the Israeli population doesn't live in the desert.

More than half of Israel's land area is desert. It's quite hard to develop a nation in the desert.

Yep. Population density map: https://www.jewishvirtuallibrary.org/jsource/images/maps/isr... almost all the population lives near the sea.

It's also part of mythology of Israel that it was built on an empty wasteland, and not on the ashes of Palestinian villages and farms.

the point was "with not so much natural ressources"