The United States has launched a $50 billion economic formula for Israeli-Palestinian peace, saying an investment programme for the Palestinians was a precondition for ending the decades-old conflict.

US President Donald Trump's senior adviser and son-in-law Jared Kushner opened a two-day international meeting in Bahrain to rally support for the blueprint.

The plan has met broad disdain from Palestinians and others in the Arab world although regional US allies such as Saudi Arabia discreetly support it.

"We can turn this region from a victim of past conflicts into a model for commerce and advancement throughout the world," Mr Kushner told the gathering, attended by the heads of the International Monetary Fund and World Bank.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects:

"Money is important. The economy is important ... The political solution is more important," he said.

The political details of the peace plan, almost two years in the making, remain secret. Neither the Israeli nor Palestinian governments attended the curtain-raising event while several Arab states stayed away or sent deputy ministers.

The conference is taking place in Bahrain, home to the US Navy's Fifth Fleet, amid high tension between Iran on the one hand and the US and its Sunni Muslim allies Saudi Arabia and the United Arab Emirates on the other.

All share a common foe with Israel in Shia Iran.

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, said Israel was open to the proposal.

The US will be hoping that wealthy Gulf Arab states show a concrete interest in the plan, which expects donor nations and investors to contribute $50bn to the Palestinian territories, Jordan, Egypt and Lebanon.

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"To be clear, economic growth and prosperity for the Palestinian people are not possible without an enduring and fair political solution to the conflict ... one that guarantees Israel's security and respects the dignity of the Palestinian people," Mr Kushner said.

"However, today is not about the political issues. We will get to those at the right time."

It is not clear whether the Mr Trump team plans to abandon the "two-state solution", which involves creation of an independent Palestinian state living side-by-side with Israel.

The United Nations and most countries back the two-state solution, which has underpinned every peace plan for decades, but Mr Trump's team has consistently refused to commit to it.

Mr Kushner told Al Jazeera TV yesterday that the Trump plan would not follow a Saudi-led Arab initiative that has been the Arab consensus on the outline of a settlement since 2002.

Any solution must settle long-standing issues such as the status of Jerusalem, mutually agreed borders, Israel's security concerns, Palestinian demands for statehood, and the fate of Israel's settlements and military presence in territory where Palestinians want to build that state.

The Saudi-backed initiative calls for a Palestinian state with borders that predate Israel's capture of territory in the1967 Middle East war, as well as a capital in East Jerusalem and refugees' right of return - all rejected by Israel.

Chief Palestinian negotiator Saeb Erekat said Mr Kushner was "committed to the initiatives of Israel's colonial settlement councils".

On the outskirts of Ramallah in the West Bank, Palestinian politician Mustafa Barghouti said there could be "no economic solution as a substitute for our freedom".

A small crowd of protesters was dispersed by Israeli troops firing tear gas.

In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.

An Iranian official called Mr Kushner's plan "shameful" and "doomed to failure".

Yesterday Mr Trump imposed sanctions on Iran's supreme leader and other officials after Iran downed a US drone following attacks on oil tankers in the Gulf.

Palestinian leaders boycotted the conference, and are refusing to engage with the White House, accusing it of pro-Israel bias.

In 2017 Mr Trump broke with the international consensus by recognising Jerusalem as Israel's capital, infuriating the Palestinians and other Arabs.

Irish Govt provides funding for Palestinian people 

The Irish Government has announced €5m in core funding to the United Nations Agency for Palestine Refugees (UNRWA).

In a statement Tánaiste and Minister for Foreign Affairs Simon Coveney said: "Ireland is a long-standing supporter of UNRWA.

"Its work is essential to the delivery of healthcare, education and humanitarian relief and social services, including food assistance, to 5.4 million Palestine refugees.

"The ongoing conflict in the Middle East region has meant an increased demand for UNRWA's services".

Mr Coveney said that today's announcement "reflects Ireland's abiding commitment to the vital work of UNRWA" that is necessary "until a lasting solution to the Israeli/Palestinian conflict can be negotiated".