Leaders of Israel and Palestine met within the framework of 7th meeting of the Ankara Forum on Tuesday prior to the meeting in Annapolis, U.S. at the end of November.

Turkish President Abdullah Gul, Israeli President Shimon Peres and Palestinian President Mahmoud Abbas met within the framework of the Ankara Forum that was initiated by Turkey in 2005 as a confidence building mechanism between Palestine and Israel.

Delivering the opening speech at the meeting Turkish President Abdullah Gul said that welfare, stability and peace were interrelated in a region. Gul indicated that the concrete step taken to establish industrial zones in Palestine would encourage compromise on political issues.

"To date, many speeches have been delivered and proposals made in the region. Today, we see a concrete step taken in the region," Gul explained. "In order for welfare to exist in a region, there must be stability. And, for stability to exist, there must be peace. Industrial activities in the region will present Palestinians with employment opportunities. Economic achievements will bring solutions to political problems. I would like to express that the concrete step taken today shows the political will of the presidents of Israel and Palestine prior to the Annapolis meeting in the United States.

After opening remarks by President Gul, Peres and Abbas delivered speeches to the participants.

Israeli President Shimon Peres said the agreement on establishment of industrial zones in the Middle East was a win-win agreement. "This project will yield important results for the region and contribute to peace process," he said.

During the meeting, Peres and Abbas underlined importance of the Ankara Forum and the mentioned agreement for the Middle East peace process.

Peres hailed Abbas as a "friend" and a "man of peace" and said Tuesday's agreement would strengthen both sides' hands before the Annapolis meeting. He also noted that it is a chance for the Palestinian people to have Abbas as their leader. "Lives of people could change with such economic initiatives," Peres said. "I believe accomplishment of this project would contribute to the peace process. They were working to ensure not only peace but also freedom and equality, eliminate differences between the rich and the poor, and maintain peace."

"This agreement is a win-win situation," the Israeli leader said. "This meeting supports Annapolis and it will contribute to the peace process."

On his part, Abbas said Israel would also live in an area of peace, security and stability in the Middle East if Palestine and Israel ensured peace. "There would be no wars or enmity after that and all people in the region would live in security and stability," he said.

Mahmoud Abbas qualified the Ankara Forum a "significant opportunity" and said Turkey played economic and political roles in the region.

"We are working with all our strength to be successful at the conference in Annapolis and to make peace with our neighbours," Abbas said, just before the three leaders signed the agreement.

The 7th meeting of the Ankara Forum discussed future steps to be taken to make progress regarding the industrial zone project in the West Bank and possible support and assistance from Turkish, Israeli and Palestinian presidents, said the final statement released at the end of Ankara Forum.

Chairman of the Union of Chambers and Commodity Exchanges of Turkey (TOBB) Rifat Hisarciklioglu read the final statement of the forum.

"Presidents of Turkey, Israel and Palestine expressed their support for maintaining forum activities successfully. Forum members discussed future steps to be taken to make progress regarding the industrial zone project in the West Bank and possible support and assistance from Turkish, Israeli and Palestinian presidents in the short and the mid-term," the statement said.

"Ankara Forum has decided to implement the first industrial zone project in the West Bank near Tarqumia crossing and then at a place to be shown by the Palestinian authority in Genin," it said.

Ankara Forum also asked for support from three presidents regarding legal procedures, infrastructure services, investment and promotional activities and a protocol for security and transportation.

Gul, Peres and Abbas signed an agreement to begin organized industrial projects in the West Bank within the framework of the Ankara Forum.

According to diplomatic sources, more than 200 companies previously operating in the Palestinian Free Industrial Zone near Erez crossing gate in Gaza, which provided employment opportunities for nearly 5000 people, had to be closed as a result of Israel's withdrawal process from the region.

Turkish FM and PM of that period Abdullah Gul, during a visit to the region in 2004, expressed his views on the steps to be taken regarding the improvement of socio-economic conditions of the Palestinians and the contribution of civil society and private sector in the peace process.

Within the framework of the "industry for peace" approach, a project aiming to revive the Erez Industrial Zone was brought up during the Ankara Forum activities held in April 2005. Since the meeting on that date, five more meetings were held within this framework in Jerusalem, Istanbul, Tel Aviv and Washington D.C.

Implementation of Turkey's "Organized Industrial Zone" model in the countries of the Middle East is expected to contribute remarkably to the development of private sector in these countries.

Such project will also contribute to the creation of employment opportunities in Palestine, attraction of investments to the region and development of the region's economy in the medium and long-term.

Similar to the project in Gaza, studies aiming to implement a parallel project in West Bank started.