Just to be clear, serving in the military is not forbidden for Israeli Arabs, but it is the only thing that is not ''required'' of them to do. Israelies have to go to military service, while Israeli Arabs are not ''required'' to do that. Even though most of them don't do it, still there's the occasional exception where some of them want to go to military service and they do attend it.
Most of the Arabs residing in East Jerusalem and the Golan Heights, conquered by Israel in the Six-Day War of 1967 and later appended, were granted Israeli citizenship, but most have declined, not desiring to accept Israel's demand to supremacy. They became constant citizens alternatively. They have the right to appeal for citizenship, are authorized to public duties and have corporate polling rights.