> The discrimination is based on citizenship status and not on race. Arab Israelis have the same rights as Jewish Israelis.
It is based indirectly on race (inasmuch as "Jewish" is a race; maybe "cultural group" would be more accurate), because any Jewish person in the world can become an Israeli citizen, whereas most Arabs have no way to become citizens unless they are in Israel proper, the Golan Heights, or East Jerusalem. I.e. for people who live in the West Bank (outside East Jerusalem), whether they are Israeli citizens is entirely determined by whether they are Jewish.