[rmlew]

The Israelis are using M16's/M4 Carbines and Galils. Both use standard Nato 5.22mm rounds. To my knowledge, there are no exploding rounds of this scall size.
The Palestinains have AKMs/AK-47s wich have a 7.65mm round. There are explosing versions of this round.

[C-Note]

You might want to check your facts and report back to us.

[BJClinton]

The Galil also comes in a .308 caliber and the Palis were given plenty of M16/M4s. A dum-dum can be made by sawing the tip off of any FMJ round, it's basically just a hollow-point for a rifle. There is a very common HP round made in Russia for the 7.62x39 that is very cheap. It's packaged in the US as Wolf.