Send them all to their made-up allah.
Build the Palis a homeland in southern Sinai. The country will run off of alternative energy sources, with petroleum products only to be used as a backup energy source for critical infrastructure. Use the gulf of Eilat as a water source to be used in desalination efforts to provide fresh water to the new Palestine.
Bring in solar technology that can be used to coat above ground water pipelines for solar collection and build transformers and battery facilities to distribute electricity through the new country. Bring in the best architects from around the world to design offices, businesses and homes that will use alternative energy. pretty much turn the entire country of Palestine into a model for the world to gaze wide wonder at.
Move the UN to the new “Green Country” as a symbol of what the world is capable of when it pulls resources together to achieve a common goal.
Then nuke the place from orbit.....just to be sure.