Tel Aviv-Yafo is Israel's second-largest city and its financial, commercial, and industrial center, with a population of 384,600 (2006). It is one of the most modern cities in the Middle East and lies on the eastern shore of the Mediterranean Sea. The southwestern section of the city was formerly a separate town called Jaffa. Cultural attractions include the Land of Israel Museum and the Tel Aviv Museum. Tel Aviv University is one of the city's several institutions of higher learning. Tel Aviv-Yafo is the center of Israel's primary manufacturing district. About half the nation's business companies are in the area. Their products include building materials, chemicals, clothing, electronic equipment, machine tools, and processed foods. The city is also the nation's leading center for such activities as banking, publishing, and trade. Israel's political parties have their headquarters in Tel Aviv-Yafo.
In 1909, Jewish immigrants (see ALIYA) from Europe founded Tel Aviv northeast of Jaffa. Tel Aviv was administered as part of Jaffa at first, but it became a separate town in 1921. The city grew rapidly as Jewish immigrants arrived mainly from Europe. It became Israel's first capital when the nation was established in 1948. The capital was moved to Jerusalem in 1949, but the Israeli Ministry of Defense and most foreign embassies remained in Tel Aviv. Most government departments maintain offices in Tel Aviv. In 1950, Tel Aviv and Jaffa merged to form Tel Aviv-Yafo.
Historical Dictionary of Israel. Bernard Reich David H. Goldberg. Edited by Jon Woronoff..