Just since 2001, Israel's GDP has grown 1,000 percent and its economy is now larger than Egypt's economy despite the fact that Egypt has 10 times Israel's population.

At the same time, the Palestinian Authority and Hamas have received billions of dollars in foreign aid and support. But instead of joining in Israel's modern economic boom and encouraging partnerships, the political leaders have clearly invested in rocket launchers and terror tunnels instead.

In other words, as Israel's economic success grows and the economic opportunities for Arabs in Israel grows, so, too, does the violent strategy of Hamas, Hezbollah, and Islamic Jihad.

And as long as politics trumps economics in the Middle East, there will never be peace.

Israel's economy is soaring—why isn't it bringing peace?