The Begin-Sadat Center for Strategic Studies has recently published new paper The Three-State Solution by Maj. Gen. (res.) Gershon Hacohen (BESA Center Perspectives Paper No. 870, June 19, 2018 ). The article proposes thinking spatially outside the box: connecting Gaza to northern Sinai. According Maj. Gen. (res.) Gershon Hacohen it is time to consider a new paradigm for resolving the Strip’s endemic predicament, and by extension the Palestinian-Israeli conflict. That paradigm could entail a Palestinian state in the Gaza Strip and northern Sinai, from Rafah to El-Arish, with the latter territory leased to the Palestinians on a long-term basis.
Few years ago – according Middle East Monitor (MEMO) report [01 September 2014 ] – Egypt offered Palestinian Authority’s President Abbas a Palestinian state in Sinai. Egyptian President Abdel-Fattah el-Sissi offered Palestinian Authority 620 square miles of land adjacent to Gaza in exchange for relinquishing claims to 1967 borders for the purpose of establishing a Palestinian state. PA President Abbas reportedly rejected proposal. Speaking in a meeting of Fatah leaders in Ramallah, Abbas said: “The plan, which was proposed in 1956, included annexing 1,600 square kilometres from the Sinai Peninsula to the Gaza Strip in order to receive Palestinian refugees.” He continued: “The plan is being proposed again, but we refused it.” One idea with offer was to resettle “Palestinian refugees” in the Sinai.
One part of ”Sinai option” – already few years ago – has also been the new Gaza port and its alternative Palestinian International Port in El Arish (more in Gaza Seaport – A Threat or Change and background in Hamas and Israel on Verge of the Deal )
From my point of view “regional peace process” can be implemented by Egypt, Jordan and Israel and instead of Arab Peace Initiative be based on Sinai and Jordan options. More e.g. in Analysis: Resolving The Israeli-Palestinian Conflict