SAFA — An Israeli settler organization is advancing plans to construct 122 settlement housing units on seized Palestinian property in Sheikh Jarrah, occupied Jerusalem, targeting the historic Shepherd Hotel site in a project that threatens to deepen Israeli settlement expansion and further undermine Palestinian ownership and presence in the city.
The project, promoted by Amana, one of Israel's most influential settlement organizations, would transform approximately 5.8 dunams of land in northeastern Sheikh Jarrah into a residential complex with buildings reaching 12 stories, marking the organization's first settlement development in Jerusalem after decades of involvement in establishing and expanding settlements and outposts throughout the occupied West Bank.
The Israeli settlement-monitoring organization Ir Amim disclosed the proposal on Wednesday, identifying it as Plan No. 1602689 and warning of its implications for a Palestinian neighborhood that has long faced Israeli efforts to seize property, displace residents, and expand settlement control.
The plan remains in its preliminary stages and has not yet been presented to Jerusalem's Local Planning and Building Committee, with its first discussion scheduled for November 11, 2026.
Historic Palestinian Property Targeted for Settlement Expansion
The proposed development targets the historic Shepherd Hotel property, which originally belonged to the Palestinian Husseini family before Israeli authorities seized it through the Absentee Property Law, a mechanism used to transfer Palestinian property into Israeli state control.
The property was subsequently transferred to the Israeli settler organization Ateret Cohanim, which has played a prominent role in acquiring Palestinian properties and establishing settlement enclaves in occupied Jerusalem.
Ateret Cohanim previously constructed a residential settlement complex adjacent to the historic hotel, consisting of dozens of housing units that have remained unoccupied since their completion.
Under the new proposal, the existing residential buildings would be demolished to make way for a substantially larger settlement complex, while the historic Shepherd Hotel building itself would be preserved.
The site carries particular historical and political significance because of its association with Jerusalem's former mufti and the Husseini family, whose property ownership forms part of the city's Palestinian history.
The planned redevelopment would replace the existing settlement structures with taller residential buildings, expanding the scale of Israeli construction on land that was originally Palestinian-owned.
Questions Surround Transfer of Property Rights to Amana
Recent Israeli land registration and ownership procedures have further complicated the legal status of the Shepherd Hotel property, with some portions registered under the Israeli Custodian of Absentee Property and others recorded in the name of a foreign company believed to have links to Ateret Cohanim.
According to Ir Amim, it remains unclear how responsibility for developing the site shifted from Ateret Cohanim to Amana, or whether the arrangement involved a formal transfer of property rights between the two settlement organizations.
The uncertainty surrounding the ownership and development arrangements raises further questions about the mechanisms through which Palestinian properties seized under Israeli law are transferred or made available for settlement construction.
For Palestinians in Sheikh Jarrah, where families have faced years of legal battles and attempts to remove them from their homes, the proposed development represents another expansion of Israeli settlement activity within a neighborhood already subjected to sustained pressure over land and housing.
Amana Expands Settlement Operations Into Occupied Jerusalem
Amana is among Israel's most powerful settlement organizations, maintaining close relationships with Israeli government institutions and playing a major role in financing, planning, and supporting settlement construction throughout the occupied West Bank.
The organization is headed by Ze'ev Hever, widely known as Zambish, who was previously associated with the Jewish Underground, an Israeli extremist organization responsible for attacks against Palestinians during the 1980s.
Over several decades, Amana has supported the establishment and expansion of Israeli settlement outposts, including agricultural outposts that have enabled settlers to extend their control over large areas of Palestinian land.
These outposts have become a central mechanism of settlement expansion in the occupied West Bank, where settlers establish agricultural operations, grazing areas, and other facilities that restrict Palestinian access to farmland and traditional grazing lands.
According to Ir Amim, settlement outposts supported through this wider system have taken control of approximately one million dunams of land in Area C of the occupied West Bank, contributing to the displacement of Palestinian farmers, shepherds, and entire communities.
The organization's proposed entry into occupied Jerusalem through the Shepherd Hotel development would extend its settlement operations into one of the city's most politically sensitive Palestinian neighborhoods.
Sheikh Jarrah Faces Renewed Threat of Settlement Expansion
Sheikh Jarrah has long been at the center of Israeli efforts to establish settlement enclaves within Palestinian residential areas, with numerous families facing legal proceedings, eviction threats, and attempts to transfer their homes to settler organizations.
The neighborhood has become an international symbol of Palestinian resistance to forced displacement, particularly as residents have fought to remain in homes and properties targeted by Israeli settlement groups.
The proposed construction of 122 additional settlement units would further alter the neighborhood's residential landscape and expand the Israeli settler presence on property historically belonging to a Palestinian family.
The project also reflects the broader use of Israeli planning regulations, property registration procedures, and the Absentee Property Law to consolidate settlement control over Palestinian land in occupied Jerusalem.
Under international law, Israeli settlements in occupied Palestinian territory, including Jerusalem, are illegal, and the expansion of settlement construction continues to undermine Palestinian property rights and the ability of residents to remain in their communities.
With the proposal's first planning discussion scheduled for November 11, the Shepherd Hotel site has become the focus of another struggle over Palestinian land ownership and Israeli settlement expansion in Sheikh Jarrah.
The planned development threatens to deepen the transformation of the neighborhood through the construction of new settlement housing on seized Palestinian property, while the unresolved questions surrounding the site's ownership and transfer between settler organizations highlight the continuing pressure on Palestinian land and residency rights in occupied Jerusalem.
Source : Safa News