An Israeli Arab from Nazareth won the country's first beauty pageant for transgender people on Friday, in an event that brought together contestants from the Holy Land's three main faiths on Friday in an unconventional show of tolerance and coexistence.

Christian ballerina Ta'alin Abu Hanna, Miss Trans Israel 2016, will be Israel's representative at the Miss Trans Star International pageant in Barcelona in September.

In what organizers described as an ethnic "mosaic", those vying for the Miss Trans Israel 2016 crown also included a Jewish confectioner from an Orthodox Jerusalem family and a Muslim belly-dancer from Tel Aviv.

Open gallery view Ta'alin Abu Hanna, an Israeli Arab, reacts after winning the first-ever Miss Trans Israel beauty pageant in Tel Aviv, Israel May 27, 2016. Credit: Amir Cohen / Reuters

"Our country deserves to come out on top," Abu Hanna, 21, told journalists. "Our country allowed me, a Christian Arab from Nazareth, to end the war between my soul and my body. So if it made peace for me, our country is only a country of peace."

Israel has mostly liberal laws on sexual identity, with openly gay and transgender troops in its conscript military. But people who are homosexual or transgender often face hostility from religious conservatives in the Jewish majority and Muslim and Christian Arab minorities.

An ultra-Orthodox Jew is on trial for murder, accused of killing a teenage girl during a stabbing spree at last year's Jerusalem gay pride parade.

Open gallery view Ta'alin Abu Hanna, 21, a Christian Arab-Israeli from Northern Israel, performs on stage during Israel's first Miss Trans beauty pageant . Credit: Menahem Kahana / AFP

"Israeli people like transgenders but they don't have enough information about transgenders," said pageant judge Efrat Tilma at the prestigious venue, Tel Aviv's Habima National Theatre.

"Among us there are judges, there are doctors, there are lawyers, there are people who are working in hi-tech positions and, as well, people who would like to go to the Israeli parliament and to represent us in our parliament."

Carolin Khoury, a Muslim contestant, said she hoped Friday's contest would "send a message to the Arab communities in Israel or abroad, to accept the other".

Open gallery view The 12 contestants of the first-ever Miss Trans Israel beauty pageant are seen on stage in Tel Aviv, Israel May 27, 2016. Credit: Amir Cohen / Reuters

She described overcoming sometimes violent opposition to her gender choice from her family.

"The Israeli police helped me to move out of my home, and despite all of the bad situations, I came through, I kept moving toward my dream, and here I am now," she told Reuters. "This competition will open the door for some people."