Business leaders from Nazareth in northern Israel met up with their counterparts in the West Bank on Thursday, holding a meeting with Hamas and Fatah officials in a bid to encourage reconciliation.

Nablus governor Jibrin Al-Bakri attended the discussion hosted by telecommunications tycoon Munib Al-Masri at his Palladian-style palace atop Mount Gerizim. The talk focused on developing economic ties on both sides of the Green Line.

Palestine is "one and united," Al-Masri told the attendees, calling on business leaders inside Israel to encourage reconciliation between the rival factions who split and formed separate governments in 2007. "We need progress soon or we won't be able to stand up again," he said.

Al-Masri was tapped earlier this year by President Abbas to lead a committee of independent figures to negotiate an end to the split, which has shown little sign of abating despite two years of efforts.

Al-Masri also said he supported the PA's stance on refusing to enter direct peace talks with Israel absent a settlement freeze. "We support the talks, we want talks, but, as President Mahmoud Abbas has said, we won't compromise our principles."

Basel Ghattas, who headed the delegation of Palestinian business leaders, said the visit came upon an invitation from Al-Masri, who had visited Nazareth recently and explained that Palestine could be Israel's economic connection to the Arab world.

"We're more convinced now than ever before that the future of our economic development and growth is the Arab world, despite being physically linked by force with the Israeli economy, but we have our brothers in the West Bank and Gaza."

Ghattas urged the Arab World to stop dealing with Palestinians inside the Green Line as Israelis.