In Bethlehem meanwhile, hectic preparations preceded celebrations on the West Bank town's biggest night of the year, culminating in Midnight Mass at the Church of the Nativity built over the spot where Christians believe the Virgin Mary gave birth to Jesus.
Scouts playing bagpipes and drums marched to the church in a procession led by Jerusalem's Latin Patriarch Fuad Twal, the top Catholic cleric in the Holy Land.
Outside the church at Manger Square, a man dressed as Santa Claus handed out sweets next to a giant green Christmas tree decorated with red, black and silver baubles - the colours of the Palestinian flag.
But for many faithful across the region, the festivities will be tinged with sadness after a year of bloodshed marked by a surge in the persecution of Christians that has drawn international condemnation.
"For many of you, the music of your Christmas hymns will also be accompanied by tears and sighs," Pope Francis wrote in a long letter addressed to Christians in the Middle East.
Ahead of the celebrations, the pontiff voiced concern about the growing persecution of Christians, some of whom he said had been "brutally driven out" of areas where they have lived since New Testament times.
In Baghdad, Chaldean Patriarch Louis Sako said about 150,000 Christians had been displaced by an offensive spearheaded by the Islamic State group, which has targeted Christians and other minorities, with dozens leaving Iraq each day.
Iraq's displaced Christians "still live in a tragic situation and there are no quick solutions for them," Sako told AFP, saying that particularly this Christmas, they needed reassurances that they "are not left alone and not forgotten".
In Syria, Christians in the war-torn city of Homs were enjoying their first Christmas in three years in the Hamidiyeh neighbourhood, with a brightly coloured tree and a manger made from rubble set up in the middle of the ruins.
"Our joy is indescribable," said Taghrid Naanaa while picking out tree decorations at a shop in the district, which the Syrian army recaptured from rebel fighters this year.
Elsewhere around the world, around 100 pro-democracy activists in Hong Kong marked Christmas Eve with the first sizeable rally since the clearing of a central protest camp last week.
In France, the busy Christmas period has been marred by a series of attacks, including one linked to Islamic extremism, which killed one person and left another 25 wounded.
And in Sierra Leone, all public Christmas celebrations were cancelled as a result of the Ebola crisis, with soldiers deployed on the streets over the holiday season to prevent spontaneous street celebrations, officials said.
-AAP
