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Mayor Ali Salam, a Muslim, ordered all artistic events to be canceled -- including a festival and large Christmas market.
"Our identity and faith aren't up for debate," Salam told The Times of Israel. "The decision [by Donald Trump about Jerusalem] has taken away the joy of the holiday, and we will thus cancel festivities this year."
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The residents of Nazareth are primarily Arab citizens of Israel. Nearly 70 percent are Muslim and about 30 percent are Christian.