When Suan Abbas took the field as a second-half substitute in last month's international friendly between Israel and Croatia in Jerusalem, he was greeted by his own fans with jeers and a barrage of racist chanting. Abbas's crime? He was an Israeli Arab Muslim playing for Israel during these tense and troubled times.

Abbas is the captain and heart and soul of the Israeli Arab side Bnei Sakhnin, current holders of the Israeli Cup that hail from a small town in the rolling hills of Galilee in northern Israel.

Sakhnin is like most Arab towns in Israel. The place has a distinctly third-world feel with unemployment figures over 30 per cent and over half the population of the 21,000 is either on or below the poverty line. Access to quality services is non-existent as the central government diverts funds for schools and hospitals into Jewish populated areas. When the second intifada broke out in 2001, the town of Sakhnin rose up, as much out of frustration at a lack of civil rights as any feeling of solidarity with their Arab brethren in the West Bank.

At the time of Sakhnin's surprise Cup final win over Hapoel Haifa, the Israeli FA spin doctors attempted to seize on the success and portray it as a symbol of integration in the country. In fact, the opposite has occurred as Sakhnin's success further highlights the divisions in the society. It is true that Sakhnin are managed by an Israeli Jew and have three Jewish players in their ranks, but Bnei Sakhnin operate on a shoestring budget and are millions of shekels short of the funds required to build their own stadium. They play "home" games over 50 miles away in Haifa and their players are given a more than hostile reception wherever they go, but particularly in bitterly divided Jerusalem.

The problems of racism, xenophobia and sectarianism in Israeli football have come to light in the last few years. Beitar Jerusalem's hard-core fans are seen by most observers as being the worst culprits with a fan base that is drawn from right-wing youth groups and the club has close ties to the ruling Likud party. It is somewhat tragic, that a country that was founded on the most part on the back of the toil and bravery of survivors of Hitler's savagery and barbarism should now have major problems with racism, intolerance and sectarianism.

Even Tel Aviv, a city that prides itself on being a hip, trendy, cool and vibrant alternative to Jerusalem, is not immune from trouble and sections of the Maccabi Tel Aviv crowd are known for their hostile treatment of black and Arab players, even on their own team. Interestingly, teams that use the Hapoel prefix are generally left leaning in political outlook, while those Maccabi teams are drawn to the centre and right. Unsurprisingly, there is little racist chanting at Hapoel Tel Aviv or Hapoel Haifa games so the problem is not totally endemic.

The difficulties do not stop with the treatment of Arab players, although the most venomous attacks are kept for Arabs. Black players are welcomed to many grounds around Israel by monkey chants and racial abuse that reaches sickening levels at times.

The first black player to ply his trade in Israel was Cameroon international Cyril Makanaky who signed for Maccabi Tel Aviv over a decade ago, and he hardly enjoyed the hospitality.

Falashas - black Jewish immigrants of Ethiopian origin who were transplanted to Israel en masse during the civil war in Eritrea - are also subject to racial abuse despite their obvious Jewishness. The plight of the "Black Jewish" players mirrors that of Falashas in general Israeli society, the 60,000 or so live in ghettos outside the main towns and live a life of dependency on social security and handouts. Their neighbourhoods are "no-go" areas with drug abuse and prostitution rife. The institutional racism was particularly evident in 1996 when the blood donated by Falashas to hospitals was dumped due to fears it was "unclean".

The Israeli football authorities have to their credit accepted there is a problem. After the first case of racial abuse was cited four years ago against a black Jewish player Ziv Kabeda, the FA began to put in measures to kick racism out of football.

However, if recent trouble at international and domestic games in Israel is anything to go by, then they still have a long way to go.

One bright light in this dark climate is the Football For Peace project in northern Israel. The project is the brainchild of Prof John Sugden, a softly-spoken Liverpudlian who knows a thing or two about sectarianism in football. Sugden is widely published on such matters and learned his trade when based in Jordanstown in Belfast in the 1980s and '90s, where he founded the successful cross-community Belfast United project.

Sport can so often be a social lubricant, bringing people together. Conversely, sport can also be the vehicle for right-wing sentiments, nationalism, sectarianism and racism. Sugden believes though that it is through sport that the barriers can be broken down, and Israel is no different.

Started in 2001, the latest concept is to encourage opposing communities to participate in cross-community soccer camps. The project is based in Galilee, where the vast majority of the one million or so Arab Israelis live, and espouses five core values: neutrality, inclusion, respect, trust and responsibility. The ultimate aim is to resolve conflict and promote community reconciliation among young people through sport.

Four years ago the project boasted one camp and 60 children and was centred on one town. Now, the project aims to touch 20 towns and villages in northern Israel and will target 1,000 children.

Teams in Galilee are now mostly mixed, due in no small part to Jewish teams poaching the better and "hungrier" Arab talent to bolster their chances of success. People who lived in communities only miles away but had no contact before are now regularly meeting because of sport. All these developments are positive.

Sugden's aims are lofty and one has to admire his vision. He accepts his project is only a small gesture in the wider scheme of things, but at least he is trying. "I just hope what we are doing can in some small way assist in what is now once again a crucial time for Israel. The Football For Peace project is the grassroots approach to run parallel to the Israeli government and Israeli FA's policy changes. The problem is that Israeli society is so complicated and fragmented with different cultures and ethnic groups and entrenched hatred, but things will get better. Hopefully we have made some small difference," the professor concluded.

Mick O'Keeffe is a PR consultant based in Dublin who writes extensively on sport.