[27][28] The city was the first standard direction for Muslim prayers,[29] and in Islamic tradition, Muhammad made his Night Journey there in 621, ascending to heaven where he spoke to God, per the Quran.

[30][31] As a result, despite having an area of only 0.9 km2 (3⁄8 sq mi),[32] the Old City is home to many sites of seminal religious importance, among them the Temple Mount with its Western Wall, Dome of the Rock and al-Aqsa Mosque, and the Church of the Holy Sepulchre.

[51][52] The Execration Texts of the Middle Kingdom of Egypt (c. 19th century BCE), which refer to a city called rwšꜣlmm or ꜣwšꜣmm, variously transcribed as Rušalimum, or Urušalimum,[53][54] may indicate Jerusalem.

The name is possibly a shortened form of مدينة القُدس Madīnat al-Quds "city of the holy sanctuary" after the Hebrew nickname with the same meaning, Ir ha-Qodesh (עיר הקדש).

The international community largely considers the legal status of Jerusalem to derive from the partition plan, and correspondingly refuses to recognize Israeli sovereignty over the city.

The law prioritized construction throughout the city, and offered grants and tax benefits to residents to make housing, infrastructure, education, employment, business, tourism, and cultural events more affordable.

Communications Minister Moshe Kahlon said that the bill sent "a clear, unequivocal political message that Jerusalem will not be divided", and that "all those within the Palestinian and international community who expect the current Israeli government to accept any demands regarding Israel's sovereignty over its capital are mistaken and misleading".

A team of experts assembled by the then Israeli Prime Minister Ehud Barak in 2000 concluded that the city must be divided, since Israel had failed to achieve any of its national aims there.

[107] A poll conducted in June 2013 found that 74% of Israeli Jews reject the idea of a Palestinian capital in any portion of Jerusalem, though 72% of the public regarded it as a divided city.

[citation needed] Water supply has always been a major problem in Jerusalem, as attested to by the intricate network of ancient aqueducts, tunnels, pools and cisterns found in the city.

Neighbouring cities and towns include Bethlehem and Beit Jala to the south, Abu Dis and Ma'ale Adumim to the east, Mevaseret Zion to the west, and Ramallah and Giv'at Ze'ev to the north.

[182] According to a study published in 2000, the percentage of Jews in the city's population had been decreasing; this was attributed to a higher Muslim birth rate, and Jewish residents leaving.

[186] Possible factors are the high cost of housing, fewer job opportunities and the increasingly religious character of the city, although proportionally, young Haredim are leaving in higher numbers.

Muslims believe that Muhammad was miraculously transported one night from the Great Mosque of Mecca to the Temple Mount in Jerusalem, whereupon he ascended to Heaven to meet previous prophets of Islam.

[229] The Al-Aqsa Mosque, originally named after the wider compound it sits within,[230] was built on the Temple Mount under the Umayyad Caliph Al-Walid several decades after Muhammad's death to commemorate the place from which Muslims believe he had ascended to Heaven.

[232] Jerusalem's religious and cultural landmarks today remain the top draw for foreign visitors, with the majority of tourists visiting the Western Wall and the Old City.

[236] In April 2015, Time Magazine picked Jerusalem as one of the five emerging tech hubs in the world, proclaiming that "The city has become a flourishing centre for biomed, cleantech, Internet/mobile startups, accelerators, investors and supporting service providers.

[238] During the British Mandate, a law was passed requiring all buildings to be constructed of Jerusalem stone in order to preserve the unique historic and aesthetic character of the city.

The unemployment rate in Jerusalem (8.3%) is slightly better than the national average (9.0%), although the civilian labour force accounted for less than half of all persons fifteen years or older—lower in comparison to that of Tel Aviv (58.0%) and Haifa (52.4%).

While the ACRI attributes the increase to the lack of employment opportunities, infrastructure and a worsening educational system, Ir Amim blames the legal status of Palestinians in Jerusalem.

[241] Through reforms and initiatives in sectors like technology, tourism, trade, and infrastructure, they have helped drive economic growth, create jobs, and improve living conditions in the city.

[247] PA controlled industrial areas are located outskirts of Jerusalem, primarily in Bir Nabala, Abu Dis and Eizariya, engaging in manufacture of tires, food products and concretes.

[290] It was named after Hind al-Husseini, a Palestinian activists known for rescuing orphaned survivors of Deir Yassin massacre and giving them shelter in a palace of her grandfather, which was converted into an orphanage and later a college, which is a part today's Al Quds University.

Israel's public schools for Arabs in Jerusalem and other parts of the country have been criticized for offering a lower quality education than those catering to Israeli Jewish students.

[300] The 8 ha (20-acre) museum complex comprises several buildings featuring special exhibits and extensive collections of Judaica, archaeological findings, and Israeli and European art.

The Israel Festival, featuring indoor and outdoor performances by local and international singers, concerts, plays, and street theatre has been held annually since 1961, and Jerusalem has been the major organizer of this event.

[312] The station itself has become a venue for cultural events in recent years as the site of Shav'ua Hasefer (an annual week-long book fair) and outdoor music performances.

[316] The Edward Said National Conservatory of Music sponsors the Palestine Youth Orchestra[317] which toured Arab states of the Persian Gulf and other Middle East countries in 2009.

[334] In 2008, the Tolerance Monument, an outdoor sculpture by Czesław Dźwigaj, was erected on a hill between Jewish Armon HaNetziv and Arab Jebl Mukaber as a symbol of Jerusalem's quest for peace.

The club hails from Mount Scopus at Jerusalem, part of the Asian Football Confederation, and plays at the Faisal Al-Husseini International Stadium at Al-Ram, across the West Bank Barrier.