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Satisfies both sides

Israel would have defensible borders and important holy sites. The Palestinian arabs would have their own state.

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Peace in the Middle East
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Peace Proposals?
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The Sinai Proposal
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Construct a Palestinian state in Egypt's Sinai Desert
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Satisfies both sides
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How could the new Palestinian state be created?
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What happens to the existing inhabitants of the Sinai Peninsula?
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Why a Palestinian State, not an Israeli state?
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Allows both sides to live in peace
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Construction project would boost Israeli economy
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Raise quality of life for Gazans
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Settle 7 million Palestinians in one country
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Egypt will not want to cede sovereignty
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