Six vehicles belonging to Jews were set on fire on Friday night in the City of David, near Jerusalem's Old City.
Israel Police arrested a man in his 20s who is suspected of involvement in setting fire to the vehicles.
The suspect is a resident of one of Jerusalem's Arab neighborhoods.
No one was injured in the incident. However, vehicles belonging to residents of the neighborhood were severely damaged.
Earlier this year, an Arab set fire to the vehicle of Rabbi Dov Lior, near the Mount of Olives in Jerusalem.