[EQAndyBuzz]

Here is a solution. Give the Palis Sinai. Then as a world body, the UN should turn it into a green country. Only sun, water and wind power. No pollutants, totall disarmed except for the police and basically every leftist idea piled into one grand experiment, down a no sodium diet.

Then move the UN there.

Here is the thing. If you gave Israel to tha Palis and moved every Israeli to Sinai, within 10 years Sinai would be a booming metropolis, Israel would be a $hi+hole and the Palis would once again complain.

[Yosemitest]

Give them a whole continent and the U.N (the most useless body on earth) can run it,
Give them Antarctica .
And since they want a nation without other people touching it, throw them off the ship 3 miles off shore of Antarctica and they can swim to it, and built it however they want it.
Their god will protect them from the cold.