Israel officially State of Israel, republic (1994 est. pop. 5,051,000, including Israelis in occupied Arab territories), 7,992 sq mi/20,700 sq km (excluding occupied Arab territories), SW Asia, bounded by Lebanon (N), Syria and Jordan (E), the Mediterranean Sea and Egypt (W), and the Gulf of Aqaba (S). The capital is JERUSALEM; other major cities are TEL AVIV-JAFFA and HAIFA. There are four land regions: the Mediterranean coastal plain; a mountain area in the northeast; the semiarid NEGEV in the south; and, in the extreme east, a portion of the GREAT RIFT VALLEY, including the DEAD SEA, which at 1,292 ft (394 m) below sea level is the lowest point on earth. Despite adverse conditions, extensive irrigation has enabled agriculture to flourish. Fresh fruits and vegetables are the major export crops. A wide variety of industrial goods is produced, including textiles, chemicals, military and electronic equipment, and machinery; Israel is second only to Belgium in processing diamonds. The manufacture of high technology items (computers, software, and telecommunications equipment) and biotechnology have also become significant. Tourism is also important. The standard of living is high for a Middle Eastern nation, but a high trade deficit, heavy defense expenditures, and inflation rates of 50% to 100% in the 1980s have put the economy under a great strain. About 85% of the population are Jews, about half of whom are immigrants from Europe, North America, Asia, and North Africa. The non-Jewish population consists mainly of Muslim, and a smaller group of Christian, Arabs. The official languages are Hebrew and Arabic, but English and many European languages are widely spoken. Israel is highly urbanized. About 7% of the people live on COLLECTIVE FARMS known as kibbutzim, moshav ovdim, and moshav shitufim.