Essentially you're proposing a new Rawabi relocated to Saudi Arabia. I think it would work better in the UAE.
Remember that models are prototypes. Few startup business models succeed (as an angel investor in a dozen, I've verified this empirically). On the other hand, one big winner pays for all the losers, and, hopefully, then some. In this case the scale gap between the model and the West Bank and Gazan society to inject it into is like the difference between your corner mini-market and Amazon. And in this environment no model will scale and no strange things can happen unless you:
1. Have every participant vetted by an independent agency headed by Bassam Eid, Mosab Hassan Yousef, Dalia Ziada (https://www.youtube.com/watch?v=clam29FoBBU), Lucy Ahrish and Sophia Khalifa or similar and a BoD with people matching this profile.
2. No participant can have any jihadi idiocy or Hamas or PA associations in his or her work history or social media feeds. The same goes for Israelis associated with Ben Gvir, Smotrich and outpost settlers. Fully symmetrical marginalization of theocratic fascists on both sides.
3. Total freedom of expression in the work environment, including for atheists, apostates, West Bank gays who fled to Tel Aviv, etc. Clone Silicon Valley, Tel Aviv and Stockholm or it won't work.
4. No compulsory hijab for women who participate.
5. Palestinian participants must renounce their inherited refugee status and delete their names from UNRWA's roster. Anyone who insists on keeping inherited refugee status thinks1948 comes with a do-over clause and believes in a right of return to great-grandpa's village. This narrative contradicts the Abraham Accords and the premise of the enterprise.
6. Part of #3: the campus will need a nice bar with good wine, beer, cognac, grappa, etc. The bar will serve prosciutto di Parma and cheeseburgers so Palestinian Christians and Jewish atheists feel welcome.
7. All startups coming out of this incubator must have a BoD with members from both sides.
8. Name the enterprise after Eyal Waldman's daughter and Bassam Eid. Or name it the Rambam-Khaldun AI Startup Incubator.
Think divergently, like they did.