Give them Sinai as their new homeland. Build the country along the Gulf of Eilat so there is water that can be desalinated for farming and drinking. This would create a new economy for revenues. They can have an airport, however airspace over northern Sinai is restricted airspace.
They can build an entirely green nation. Companies and countries can contribute their technology for a petroleum free society. Vehicles, housing and other infrastructure will be green. The new green society will be a model for all the world to see.
Move the UN there as well as creating a new Davos for the WEF folks. Invite the dignitaries and all the cool people to the new UN and on the night of voting on Palestinian membership to the UN, nuke the place from orbit... just to be sure.
Good idea but you forgot to add one thing, put a big tall fence all the way around the Sinai so the roaches can’t escape when you NUKE IT FROM ORBIT!!!!