Egypt condemned on Saturday Israel for its adoption of the controversial “nation-state” law, saying it undermines the chances for peace in the Middle East and consecrates discrimination. “The Arab Republic of Egypt announces...its rejection of the law passed by the Israeli Knesset on the ‘national state for the Jewish people’ law ... for its ramifications that consecrate the concept of occupation and racial segregation,” the Egyptian foreign ministry said in a statement. “It undermines the chances for achieving peace and reaching a just and comprehensive solution for the Palestinian issue,” it said. The new law, which gives Jews the exclusive right to self-determination in the country, has a potential impact on the right of Palestinians displaced from their homes in 1948 when Israel was founded, and their descendants, to return to their homes under United Nations resolutions, it continued. The law, which was passed on Thursday, has drawn rebuke from the European Union and was denounced by the Palestinian Authority and Arab citizens of Israel as racist legislation. On Friday, Egypt’s al-Azhar Mosque denounced the Israeli law calling it “a step that reflects repugnant racism”. Saudi Arabia also condemned the law, calling on the international community to assume its responsibilities and confront the decision and other Israeli attempts aimed at perpetuating discrimination against the Palestinian people. "No racist law will undermine the rights of our people. We are proud of being a strong nation deeply rooted in our homeland," Palestinian chief negotiator Saeb Erekat said in a statement.