The Muslim Empire
The Arab conquest of the Land came four years after the death of Muhammad (632) and lasted more than four centuries, with caliphs ruling first from Damascus, then from Baghdad and Egypt. At the outset of Islamic rule, Jewish settlement in Jerusalem was resumed, and the Jewish community was granted permission to live under "protection," the customary status of non-Muslims under Islamic rule, which safeguarded their lives, property and freedom of worship in return for payment of special poll and land taxes.
However, the subsequent introduction of restrictions against non-Muslims (717) affected the Jews' public conduct as well as their religious observances and legal status. The imposition of heavy taxes on agricultural land compelled many to move from rural areas to towns, where their circumstances hardly improved, while increasing social and economic discrimination forced many Jews to leave the country. By the end of the 11th century, the Jewish community in the Land had diminished considerably and had lost some of its organizational and religious cohesiveness.
Source: Israeli Foreign Ministry