Ali Abu Shala said he has a great idea - an amusement park on the Gaza beach.

“We have a very good beach in Gaza,” says the wiry engineer. “Why not to lease it to a company, a big company for 20 years, develop it and bring good life to the people? Why not?”

Abu Shala led a delegation of some 100 Gazan businessmen to the Palestine Investment Conference, which convened in the West Bank city of Bethlehem. Escorted by Israeli security forces as they travelled from the beleaguered Gaza Strip, the Gazans came hoping to tap into funding and get their business ideas going.

More than 1,000 entrepreneurs, financers and officials from all over the world converged on Bethlehem this week for the second annual economic conference held at the sumptuous convention center built near the biblical Solomon Pools. Potential sponsors were shown investment opportunities while political leaders used the occasion and massive audience to invoke their agendas.

Palestinian Authority head Mahmoud ‘Abbas spoke at length about the need for reconciliation between Fatah and Hamas.

Gala opening ceremonies were cancelled in response to the deadly Israeli interception of a Turkish ship trying to break the blockade of Gaza, an incident which left nine activists dead and dozens wounded. ‘Abbas drew a long standing ovation when he granted the foreign activists Palestinian citizenship.

Calling the incident a “blood sacrifice,” Abbas said he hoped it would push forward reconciliation efforts to unify the Palestinians toward a compromise between Hamas and his Fatah movement. He said a delegation of prominent Palestinians, led by Munib Al-Masri from the West Bank, would soon head to Gaza to seek a deal.

The Palestinian leadership is driving ahead with its plans for statehood and the creation of a sustainable economy less dependent on foreign aid. The West Bank saw 8 percent growth last year as Israel eased restrictions and American-trained Palestinian security forces enforced greater law and order.

Unlike the first PIC conference, which focused on large industries, this year’s parley focused on small and medium business opportunities in the West Bank and Gaza Strip, which make up 90 percent of Palestinian businesses. A $500 million fund from the Al-Amal group that aims to provide Palestinians with long-term loans and home mortgages was announced.

Keen to support a robust Palestinian economy, the Israeli government helped facilitate travel for Arab investors, including businessmen from Saudi Arabia, United Arab Emirates, Kuwait and other Arab nations that have no diplomatic relations with Israel. Some 200 Gazans requested permits to enter and the Israel Government Coordinator of Activities in the West Bank and Gaza Strip approved 108.

Wassem Khaz Nader, who runs an electric company in Gaza City, said he hasn’t been allowed out of the coastal strip for over two years. He praised the flotilla, explaining that it was trying to bring supplies that Israel bans in to Gaza, particularly cement and iron.

“You know nobody can invest in Gaza,” Nader said. “I am coming here to say to the world we have very hard conditions in Gaza. We don’t have any material, just food. We don’t need food, we need iron and copper and plastic.”

When Israel pulled out of the Gaza Strip five years ago, it was hoped Gazans could develop a sustainable economy. But after Hamas seized control from Fatah and began firing rockets into Israel, it came under the Israeli blockade which Palestinians claim has stifled nearly everything except humanitarian aid.

Abbas said that the Palestinian Authority has allocated 58 percent of its budget to the Gaza Strip despite the power struggle. Merchants say that the social fabric of Gaza is in turmoil as traditional merchants have given way to the newly rich smugglers, backed by Hamas, who have flooded the shelves with merchandise.

“All legitimate private sector activities have been completely stopped,” said Ali Abu Shalah. “The illegitimate private sector is working now. We came here to tell the others that it is enough, we need work now.”

Businessmen like Yussef Shaath, who organizes the export of flowers and strawberries from Gazan farmers to Europe, were more critical. He said the Israeli blockade was a farce and didn’t stop Hamas.

“The legitimate private sector is being harmed by this,” Shaath said. “The siege is not harming Hamas at all. It was not harming Hamas and it will not harm Hamas.”

One businessman, who spoke on condition of anonymity, said that Hamas was recently able to announce the construction of 1,000 apartments using rubble from the buildings destroyed by Israel and cement smuggled in through the tunnels.

Palestinian Prime Minister Salam Faya’d held a closed-door meeting with the Gaza businessmen where they voiced their angst.

“Having Gazans in this conference is a unique opportunity for us here in the West Bank to meet with investors from Gaza,” said Ghassan Al-Khatib, director general of the Palestinian Investment Promotion Agency. “There is lots of bitterness there and lots of demands and requirements, but the meeting and the interaction left very a positive atmosphere.”

One of the businessmen from Gaza was Halim Halabi, who came seeking funding for 28 projects chosen among 80 submitted by Gazans. They ranged from construction to education, agriculture and tourism projects.

“We have some projects that we can build with minimum raw material imported from outside and using raw material available in Gaza,” Halabi said. “These are mainly small and medium ones, not strategic and huge projects. They are easy to start, for example fish farms. We need financial support not technical support. We have lots of experts who trained in Japan and Korea.”

Abu Shalah said he didn’t believe anyone would invest in Gaza because of the volatile situation there.

But not all shared his view.

“We believe that the current situation is not permanent, it is temporary,” said Shaath. “The basic situation of Gaza holds a lot of potential. We have skilled workers in very high demand in various sectors so we are coming here under the assumption of a normal situation.”

Caught between an Israeli blockade and a split Palestinian leadership, the beleaguered Gazans have become pawns in the process.