Whereas the economic relationship between Israeli and Palestinian businesses in Judea and Samaria (the so-called “West Bank”) are today smooth, and welcomed by everyone involved, economic cooperation with the Palestinians in the Gaza Strip is proving to be far more difficult. Hamas has severely limited business ties with Israel, and Israel likewise only partially tolerates trade with Gaza.

In the Internet age, however, lucrative trade arrangements can be established by and for both sides relatively easily. One example of this is the Israeli hi-tech company Innitel, which apparently has had a component supplier from Gaza for some years now. The Gaza supplier sends highly specialized components for final assembly in Israel. In the meantime, word has got around in the Israeli hi-tech community about the competitively priced services and products from the Gaza Strip. More and more small Israeli companies are now purchasing from the Gaza Strip, to the detriment of the competition in Eastern Europe and India. One of the larger Israeli technology companies, Mellanox, has even directly employed ten workers in Gaza, and plans to double this number...