Excellent summary.
Egypt should give Sinai to the Palis. That could be their new homeland. They will have a warm water port so they can import/export goods. Plus for Egypt trying to govern Sinai as well as maintain any military presence there is a waste.
What the EU and leftists across the world should do is make the new Pali homeland in Sinai a green homeland. That means no carbon emitting cars nor trucks. In addition, all electricity will come either via the gulfs water supply or by sunlight. Buildings will all have solar panels.
We need someone to test this on. Might as well be the Palis in Sinai.