The Promised Land
There are many references to the Promised Land in the scriptures. The Promised Land was an area that the Lord promised to Abraham (Genesis 12:1,7) and all of his descendants. The land area included in the promise was larger than modern Israel. It was composed of both modern Israel and an amount of the surrounding land (Joshua 1:3-4).
The scriptures tell us much about the Promised Land and the story of the chosen people of God, the Hebrews (more commonly known now as the children of Israel or Israelites). Much of the Old Testament covers the accounts of the Hebrews being selected by God as his people, led to the Promised Land and their adventures taking it and keeping it from their hostile neighbors.
What there is not, is any direct explanation of why the Lord selected the area that he did for the Promised Land. After all, the Lord could have selected anywhere for the Hebrews to live. Why did he select semi-arid desert scrub-land when there was highly fertile land in either Egypt or the valley of Mesopotamia? The scriptures do give us the answer, but we have to dig a little.
The Promised Land is where it is because the Lord understands the real estate principle of "Location, location, location". The location of the Promised Land is not accidental and neither is the site of the city of Jerusalem within it. The Lord desires to reach out to the whole world to invite them to be in relationship with him, to make him their God, worship him and receive the blessings of that relationship. To this end, he selected the Hebrews and set them in the most visible location in the known world at that time. It was his intention that the rest of the world would see Israel and the blessings and protection of the Lord upon them and that they would desire to serve him after seeing the positive aspects of such a relationship.
Jerusalem is referred to as a shining city on a hill for a good reason. Jerusalem is literally built upon a series of hills and is visible for travelers going by. And why are there travelers going by? Because the primary trade routes of the known world at that time converged there, passing right in front of it. The Lord could literally not have chosen a better location for visibility. The world's merchants would stop to trade at Jerusalem and by staying there frequently, would pick up some of the local culture including knowledge of the Hebrew religion. They would then take this culture with them wherever they went.