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Update
A relevant quote from Rashid Khalidi's The Iron Cage:

This is not to say that there are not many myths worth debunk- ing in the Palestinian version of events: there are indeed, particu- larly ideas relating to the Zionist movement and Israel and their connections with the Western powers, the relation of Zionism to the course of modern Jewish history, particularly the central place of the Holocaust in this history, and the reductionist view of Zion- ism as no more than a colonial enterprise. This enterprise was and is colonial in terms of its relationship to the indigenous Arab popu- lation of Palestine; Palestinians fail to understand, or refuse to recognize, however, that Zionism also served as the national movement of the nascent Israeli polity being constructed at their expense. There is no reason why both positions cannot be true: there are multiple examples of national movements, indeed nations, that were colonial in their origins, not least of them the United States. Deconstructing these ideas will be crucially important to an eventual reconciliation of the two peoples.

Frame challenge: what "Jewish" really means?
However, it is incorrect to interpret "Jewish" as a purely ethnic term: as it may refer to religion, ethnic origin, culture, nation, and whatever other reasons for which people are identified and identify themselves as Jewish.

Here Arab:

The Arabs, also known as the Arab people, are an ethnic group mainly inhabiting the Arab world in Western Asia and Northern Africa. A significant Arab diaspora is present in various parts of the world.

It is worth mentioning a common mistake of conflating Arabs and Muslims:

• Not all Arabs are Muslim - a significant part of them are Christians (of various Christian denominations) as well as Druze and Jews
• Not all Muslims are Arabs - the obvious examples are Turks and Persians, but in general Islam spreads well beyond the Arab World.

Frame challenge: what "Jewish" really means?
However, it is incorrect to interpret "Jewish" as a purely ethnic term: as it may refer to religion, ethnic origin, culture, nation, and whatever other reasons for which people are identified and identify themselves as Jewish.

What "Jewish" means?
However, it is incorrect to interpret "Jewish" as a purely ethnic term: as it may refer to religion, ethnic origin, culture, nation, and whatever other reasons for which people are identified and identify themselves as Jewish.

This period was also characterized by Jewish cultural revival - known as Haskala - Jewish renaissance. In other words, Jewish people acquired all the attributes normally associated with a nation... except for the territory. It is in this context that Herzl spoke of the Jewish state.

Frame challenge: what "Jewish" really means?
However, it is incorrect to interpret "Jewish" as a purely ethnic term: as it may refer to religion, ethnic origin, culture, nation, and whatever other reasons for which people are identified and identify themselves as Jewish.

This period was also characterized by Jewish cultural revival - known as Haskala - Jewish renaissance. In other words, Jewish people acquired all the attributes normally associated with a nation... except for the territory. It is in this context that Herzl spoke of the Jewish state.

Remarks
Unfortunately even today some prefer to ignore the complexity of Jewishness, and describe it as a purely ethnic or a purely religious category. Many arguments aiming at smearing Israel are built along these lines, like:

• Jews are an ethnic group, and therefore Israel is an attempt to create an ethnically pure state - then follows comparison with Nazis
• Jews are a religious group, and Israel is a theocracy, like the Islamic Republic of Iran or the Handmaid's Tale - something distasteful to modern Europeans

A piece of trivia: Herzl's other book, in which he outlines the social, political and economic structure of the future Jewish state is called Altneuland (The Old New Land). The Hebrew translator had difficulty rendering the title in the target language, and changed it to Tel Aviv (The Hill of Spring) - the name of a geographic location somewhere in modern Iraq, mentioned in the Bible (Tel Abib). Altneuland makes a curious reading - it represents a very progressive vision... but progressive by the standards of the XIX-th century Europe. E.g., while Herzl pictures Muslims as citizens with equal rights in his new state, he describes them as Ottoman Turks, seemingly unaware of their Arab identity (to his excuse, the Arab national movement was only emerging in those times.)