The head of a rare Saudi delegation to Israel and the occupied West Bank met a senior Israeli government official during his trip, Israel's foreign ministry told AFP on Sunday.

Clashes erupted Monday as Israel's military demolished the home of a Palestinian accused of involvement in a February attack outside Jerusalem's Old City that killed a policewoman, officials said.

The family home of Bilal Abu Zeid in Qabatiya, in the north of the occupied West Bank, was destroyed by a bulldozer around 2:00 am (2300 GMT), Israel's army said.

An Israeli border policeman shot dead one Palestinian and wounded another in the occupied West Bank on Wednesday when they drove towards officers, an army spokeswoman said.

The officers had been carrying out a search operation in Al-Ram, northeast of Jerusalem, during which they uncovered an arms workshop, when they spotted the vehicle coming towards them, the spokeswoman said.

The Israeli parliament finalized a controversial law compelling NGOs that receive most of their funding from foreign state entities to declare it in official reports, a Knesset spokesman said early Tuesday.

The law, seen by critics as targeting leftist groups that campaign for Palestinian rights, was passed in a 57-48 vote following a lengthy debate.

Israel's government on Sunday approved nearly $13 million in financing for the West Bank settlements of Kiryat Arba and within Hebron, officials said, following a wave of Palestinian attacks in the area.

Israeli Prime Minister Benjamin Netanyahu arrived in Uganda on Monday for a rare tour of sub-Saharan Africa, seeking new trade partners and marking the 40th anniversary of a hostage rescue in which his brother died.

Speaking in Entebbe, close to the site of the 1976 airport raid in which over 100 hostages were released, Netanyahu said the visit was "deeply moving" and symbolized the changing relationship between Israel and Africa.

UN chief Ban Ki-moon on Monday welcomed a deal between Israel and Turkey to normalize relations after years of acrimony, calling it a "hopeful signal for the stability of the region."

"I welcome today's announcement of the normalization of relations between Israel and Turkey," Ban told journalists as he met Israeli President Reuven Rivlin.

A breakthrough Israel-Turkey deal following six years of acrimony will see Israel pay $20 million (18.14 million euros) in compensation for a deadly 2010 commando raid, Turkish Prime Minister Binali Yildirim said Monday.

The deal will also see the two countries exchange ambassadors "as soon as possible", Yildirim told a press conference in Ankara.

A Palestinian woman rammed her car into a West Bank checkpoint on Friday, wounding two Israelis before being shot dead, Israel's army said.

A group of Palestinians shot by Israeli forces overnight, one of them fatally, after a stone-throwing incident in the occupied West Bank, may have been "uninvolved bystanders," the Israeli army said Tuesday.