Turkish Foreign Minister Abdullah Gul paid a two-day visit to the region last Wednesday with an agreement to donate $5 million to the Palestinians to rehabilitate an industrial zone in the northern Gaza Strip.
The donation, announced during a meeting in the West Bank city of Ramallah between Gul and Palestinian Prime Minister Ahmed Qorei, was intended to help revive Gaza's economy.
The investment, which is to be made primarily by Turkish companies, is expected to create 10,000 jobs, Palestinian officials said.
The project, headed by the Union of Chambers and Commodity Exchanges of Turkey, would revive, develop and expand the Erez industrial zone, near the main civilian crossing between Gaza and Israel, despite the violence that has plagued the territory.
Under the project, the zone will be managed by TOBB, which represents 364 chambers and commodity exchanges in Turkey.
It is the largest non-profit business organization in Turkey, linking the government and business community in various projects.
Turkish companies will be encouraged to invest in the industrial zone, and goods would be allowed to enter the European Union, the United States and the Gulf states without duty being imposed, said Mustafa Bayburtlu, a TOBB executive.
The Erez industrial zone was once considered a model of cooperation, with Israeli businesses hiring thousands of Palestinian workers at the peak of its expansion.
However, the area has been closed for the last 18 months following a number of attacks by Palestinian militants and it is adjacent to an area that recently has been decreed a "no-go zone" by the Israeli army in an effort to halt rocket attacks.
During meetings with Israeli officials, Gul signed an agreement ensuring the free flow of goods to and from the zone.
Under the agreement, the industrial zone will be guarded by armed Turkish security personnel employed by the Turkish Defense Ministry. Israel will issue the guards special permits to enter the Gaza Strip.
