There is of course some racism as there is in even the most liberal countries in the world but the majority of Israel's problems come from culture clashes. Everybody v arabs, Jews v Muslims, secular v religious, Russian, Anglos, French, Ethiopians, Bedouin, Druze all with their own unique cultures and the country is to small to house them all without coming across each other and so very often when they do it creates friction and so you have a situation where everybody hates at least 1 other group of people. Israel is tainted by hate of other cultures because there are to many of them in single tiny country, not racism and not even a crime just human nature.
U.S. confirms ISIS computer expert killed in air strike (Reuters)
from the article: Israeli society is tainted by racism