That is a question that I have asked for years, and is addressed here:
I have said this for years. To absorb the populations of these camps would have taken the Arab countries that invaded little… It isn’t like they provide social services for their own people… what is a few more?
A little secret that Israelis have learned is that you can grow things in the dessert if you use resources for desalinization, irrigation, and educate people for developing strains of plants and fertilizers. The dessert sun that bakes the Rub’ al Khali (Arabic: الربع الخا) “Empty quarter” of Saudi Arabia (which imports foreign workers like MAD – why not Palestinians?) could have been covered with 100 sq miles of solar cells. They have the oil money to spend on it!
Did they? Why not?
Does Saudi Arabia build Mosques and fund missionary efforts?
Why do I bring this up on TBC? We normally keep it to matters Catholic and otherwise religious… What the change?
Well honestly I think that this is a religious matter. The invasion of Israel was based on religious ideals, and removing “the infidels”. It speaks volumes that the allies of the Palestinians have left the Palestinians in camps for decades now. The Islamic ideals that lead to invasion don’t seem to have extended to their brother Muslims left behind enemy lines.
What does this say about the ideologies of these nations, and how are we to understand how Islam has informed it?
The Black Cordelias 
Very Good point, the Palestinians are pawns of the Arab states that can be used for propaganda against Israel. Notice that whenever Al Qaeda starts the Palestinian rhetoric, it indicates that support for them is in a slump. Israel is the perpetual foe that can always stir Arab passions and financial support across the globe. They use the “Palestinian issue” to divert attention from their own failings.
Its much easier to fight a foreign foe then one at home. We Arabs living in the Middle East and outside the Middle East realize the corruption of our leaders and the actions they have taken to remain in power (blaming Israel for their own faults). But the refugees are Israel’s problem, and hundreds of thousands of Palestinians have become citizens of neighboring countries, the people in the refugee camps want to go back to their home (as is their right according to the UN). Jordan has taken in 2.7 million Palestinians while Lebanon and Syria have about 500,000 each (as citizens). Israel only has 1.4 million Arab citizens, and they are the descendents of people who did not leave during the war.
And I do not think this is a religious issue, atleast on the Arab side. Palestinians (worldwide) have religious demographics closer to Lebanon than some Islamic state. Christian and Muslim Palestinians are usually unified in their treatment by Israelis and their views of Israel. Some of the most prominent Palestinians politicians and intellectuals have been Christians and all have opposed Israel.
And Israel has not “made the desert bloom” considering that the Levant was a naturally fertile area before the invasion of colonial powers. To perpetuate the idea that Arabs are failing to somehow cultivate their land hearkens back to white supremacy. The notion that the land was not in use simply relies on the size of the population during the British colonial rule. Palestine did not have 8 million residents (as Israel sans the westbank and gaza) thus forcing outward expansion.
And lastly, Saudi Arabia is not the country importing workers, you are thinking of the United Arab Emirates. The population is Saudi Arabia is not at a point where massive importing of labor is necessary to sustain their economic goals. What would be the point of solar panels in Saudi Arabia when a gallon of gasoline is 60 cents? Nevermind the remoteness of the region, lack of fresh water, the fact that sand moves, and high cost of such an endeavor. How would it look if the world largest exporter of petrol started using solar power, think about it.
The figures I had in mind about the number of foreign workers have come from different sources – most of which seem to agree it is as many as a third of the population.
Racism is a flag I would prefere not to waive here – it isn’t a matter I have brought up, and inserting the semblence of it into the discussion isn’t the least bit useful.
As for the issues of solar power – what you bring up is a fair enough thing to consider. Conversely, some oil producing states are already on the road to doing just that. When you are remarkably resource wealthy, (sun AND oil) it makes sense to take advatage of all of it. I suppose that is for another forum.
Interesting points all around. Thank you for your thoughts.