I am not sure I would call Israel a democracy for its Arab citizens - about 20% of the population. They can vote, but the major parties have all said they will under no circumstances allow a predominantly Arab non-Zionist party into a coalition with them, so their votes do not translate into influence on decision making. There are major state affiliated institutions which represent the interests of Jewish citizens and immigrants exclusively. Property is subject to expropriation for fairly general reasons of state interest and judicial review is limited. So their are some civil liberties - freedom of speech, substantial freedom of association - but political rights are limited and Palestinian citizens of Israel correctly feel they have no property rights which any Jewish institution is bound to respect.
Netanyahu orders more demolitions of terrorists' homes in attempt to crack down on terror (Haaretz)
from the article: Jerusalem mosque set alight in suspected 'price tag' attack