Na Mick, not true.  About 15% of eligable Israeli voters (citizens) are Arabs.  They are a mix of muslims and christians and typically vote for the Labor party. Sharon might have won over Barak last year only because many Arabs boycotted the election. Palestinians in the West bank and Gaza are not eligable to vote. 

"The Israeli election of 2001 was, and will remain, unique in that nation's electoral chronicles. It was called less than twenty-one months after the previous election, the shortest interval ever. It was the first time voters balloted only for a Prime Minister and not for a new Knesset (Parliament). Given the subsequent repeal of Israel's failed experiment with separate election of the Prime Minister, it will likely remain the last such occasion. It generated less enthusiasm, and a significantly lower turnout, than any previous election; most notably and most alarmingly, for the first time a vast majority of Israel's Arab citizens boycotted the proceedings."