--- description: Israelis and Palestinians both stand to gain billions of dollars from a two-state solution title: The Economic Gains of Settling the Israeli-Palestininan Conflict image: https://static.time.com/v3/assets/bltea6093859af6183b/blt85dd7161aad4d494/698853670b72e32c686e4591/gettyimages-476259848.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [World](/section/world/) ## World Update your preferences in [Account Settings](/account/preferences/) Close * [Middle East](/tag/middle-east/) ## Middle East Update your preferences in [Account Settings](/account/preferences/) Close # Israel-Palestinian Peace Deal Could Bring $173 Billion Windfall, Study Says by [Sam Frizell](/author/sam-frizell/) ## Sam Frizell Update your preferences in [Account Settings](/account/preferences/) Close Jun 8, 2015 2:50 PM CUT  Israeli soldiers drive an armored personal carriers during a training exercise near the Israel-Gaza Border, on June 7, 2015. Israeli soldiers drive an armored personal carriers during a training exercise near the Israel-Gaza Border, on June 7, 2015.MENAHEM KAHANA—AFP/Getty Images by [Sam Frizell](/author/sam-frizell/) ## Sam Frizell Update your preferences in [Account Settings](/account/preferences/) Close Jun 8, 2015 2:50 PM CUT The economic reward for settling the Israel-Palestinian conflict with a two-state solution? $173 billion. That’s according to a [new analysis](http://www.rand.org/pubs/research%5Freports/RR740.html "undefined") by the RAND Corporation, which calculates that a two-state solution would result in a $123-billion economic gain for the Israeli economy and a $50 billion boon for Palestinians. That’s an average per capita income increase of $2,200 (5%) for every Israeli and $1,000 (36%) for every Palestinian in the Gaza Strip and West Bank. But if a two-state resolution is not reached in the next 10 years, says the study, the economic hit would be greater than the gains: gross domestic product in the West Bank and Gaza would shrink by 46%, and in Israel by 10%. “The point is to demonstrate that there is money on the table,” Charles P. Ries, a [RAND vice president told the New York _Times_](http://www.nytimes.com/2015/06/08/world/middleeast/profit-as-an-incentive-for-israeli-palestinian-peace.html "undefined"). “There are big gains, and people don’t realize how big they are.” [RAND measured the impact of factors like trade and tourism](http://www.rand.org/pubs/research%5Freports/RR740.html "undefined"), as well as Palestinians’ renewed ability to travel more freely and exploit mineral resources in the region. ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/3912399/israel-palestinian-peace-173-billion/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/3912399/israel-palestinian-peace-173-billion/"},"headline":"Israel-Palestinian Peace Deal Could Bring $173 Billion Windfall, Study Says","datePublished":"2015-06-08T14:50:56.000Z","dateModified":"2026-02-22T08:00:00.120Z","description":"\"There is money on the table,” says a RAND Corporation researcher","url":"https://time.com/3912399/israel-palestinian-peace-173-billion/","keywords":["Middle East","Israel","Gaza and the West Bank"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt85dd7161aad4d494/698853670b72e32c686e4591/gettyimages-476259848.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Sam Frizell","jobTitle":null,"url":"https://time.com/author/sam-frizell/"}],"articleSection":"World","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt85dd7161aad4d494/698853670b72e32c686e4591/gettyimages-476259848.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"ISRAEL-GAZA-CONFLICT-ARMY","caption":"ISRAEL-GAZA-CONFLICT-ARMY","creditText":"MENAHEM KAHANA—AFP/Getty Images","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/world/","name":"World"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/middle-east/","name":"Middle East"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/3912399/israel-palestinian-peace-173-billion/","name":"Israel-Palestinian Peace Deal Could Bring $173 Billion Windfall, Study Says"}}]},{"@context":"https://schema.org","@type":"VideoObject","name":"TIME Covers: 47 Years of War and Hope in the Middle East","description":"TIME Covers: 47 Years of War and Hope in the Middle East","thumbnailUrl":"https://cdn.jwplayer.com/v2/media/r3PKM6pC/poster.jpg?width=720","uploadDate":"2014-08-07T12:48:40.000Z","contentUrl":"https://cdn.jwplayer.com/manifests/r3PKM6pC.m3u8","embedUrl":"https://time.com/3912399/israel-palestinian-peace-173-billion/","duration":"PT1M20S","potentialAction":{"@type":"SeekToAction","target":"https://time.com/3912399/israel-palestinian-peace-173-billion/?jw_start={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"}}] ```