Between 1948 and 1958, Israel`s population grew from 800,000 to two million. During this period, food, clothing and furniture had to be rationed during the so-called austerity period (Tkufat haTsena). Immigrants were mostly refugees without money or possession and many were housed in makeshift camps known as ma`abarot. Until 1952, more than 200,000 immigrants lived in tents or pre-factories built by the government. Israel received financial assistance from private donations from outside the country (mainly from the United States).  Pressure on the finances of the new state led Ben-Gurion to sign a controversial reparation agreement with West Germany. During the Knesset debate, about 5,000 protesters gathered and riot police had to close the building.  Israel received several billion Marks and agreed to establish diplomatic relations with Germany. A civil war broke out throughout Israel, but a ceasefire agreement was reached in 1949. As part of the temporary ceasefire agreement, the West Bank became part of Jordan and the Gaza Strip became Egyptian territory.
In 1955, Egypt concluded a massive arms agreement with Czechoslovakia, which brought online the balance of power in the Middle East.  In 1956, Egypt`s increasingly pro-Soviet President Nasser announced the nationalization of the Suez Canal (French and British), which was Egypt`s main source of foreign exchange. Egypt also blocked the Gulf of Akaba, which prevented Israel`s access to the Red Sea. Israel has reached a secret agreement with the French in Sevres to coordinate military operations against Egypt. Britain and France had already begun secret preparations for military action. It was claimed that the French also agreed to build a nuclear power plant for the Israelis and that, until 1968, it was capable of making nuclear weapons. Britain and France pushed Israel to give them an excuse to seize the Suez Canal. Israel should attack Egypt and Britain and France would then call on both sides to withdraw. Not surprisingly, when the Egyptians refused, Anglo-French troops entered to take control of the canal. Following the agreement signed between the parties in Abu Dhabi on 1 September 2020, the parties are cooperating to deepen and rapidly expand bilateral investment relations and place a high priority on the conclusion of financial and investment agreements, while recognizing the key role of these agreements for the economic development of the parties and the Middle East as a whole. The parties reaffirm their commitment to protecting investors, consumers, market integrity and financial stability and maintaining all applicable regulatory standards.