Israel approved the agreement between Qatar and Hamas to transfer grant funds to humanitarian projects in Gaza Strip in coordination with the United Nations, Israeli sources according to public broadcaster, KAN. It quoted security sources as saying that Israel will be part of the mechanism that monitors how these funds are used. "Israel is very happy with the new agreement regarding the transfer of Qatari funds," said Alon Ben David, a military analyst on Israeli television, adding that senior Israeli officials regard this as a very important achievement. He added that the agreement allows the transfer of funds for humanitarian aid in the Gaza Strip instead of paying salaries for Hamas employees. The third tranche of the Qatari grant to Gaza Strip will go to humanitarian and infrastructure projects and impoverished families after the Palestinian movement refused to receive the money, Qatari envoy Mohammed al-Emadi announced from Gaza on Friday. He explained that in addition to going to families in need, the funds will also be aimed at bolstering medical services and electricity in the coastal enclave. The Qatari envoy noted that Doha intends to create new workplaces in Gaza and is already in contact with the UN to sign on an initial agreement to provide $20 million for such projects. "The Qatari grant comes as part of the urgent assistance that Emir Sheikh Tamim is giving to Gaza residents in light of the difficult conditions and on the basis of UN resolutions on the issue," Emadi said, rejecting claims that the purpose of the aid transfer is to harm the unity of the Palestinian people in the West Bank and Gaza. "There was a rumor that this was an exchange of money for calm in order to break the Palestinian people and question the right of the factions [to resist], but this is not so. This is money transferred to the Palestinian people to alleviate their distress," he stressed. On Thursday, Hamas announced its refusal to receive the Qatari grant soon after Israel confirmed that it had approved the transfer. It accused Israel of exploiting the issue to politically blackmail the Palestinians and failing to abide by its agreement to permit the funds to enter the enclave every month. Israeli Prime Minister Benjamin Netanyahu had earlier this week suspended the third Qatari installment, worth $15 million, following a flare-up in attacks in Gaza. The installment was supposed to be transferred to the coastal enclave on Wednesday. Israeli sources said that the security agencies agreed to go through with the transfer in order to avoid any escalation.