Gaza Strip utilities. The Gaza Strip acquired its current northern and eastern boundaries at the cessation of fighting in the 1948 war, confirmed by the Israel–Egypt Armistice Agreement on 24 February 1949. Article V of the Agreement declared that the demarcation line was not to be an international border. At first the Gaza Strip was officially administered by the All-Palestine Government, established by the Arab League in September 1948. All-Palestine in the Gaza Strip was managed under the military authority of Egypt, functioning as a puppet state, until it officially merged into the United Arab Republic and dissolved in 1959. From the
Gaza Strip withdrawal. In 2005, after the Israeli withdrawal from the Gaza Strip, Gaza businessmen envisaged a "magnificent future". $1.1 million was invested in an upscale restaurant, Roots, and plans were made to turn one of the Israeli settlements into a family resort. The European Union states: "Gaza has experienced continuous economic decline since the imposition of a closure policy by Israel in 2007. This has had serious social and humanitarian consequences for many of its 1.7 million inhabitants. The situation has deteriorated further in recent months as a result of the geo-political changes which took place in the region during the