Setting up a biometroc database costs billions and provides very little practical benefit. This is more a matter of symbolism by give more legitimacy to the idea of a palestinians state because some countries are more likely to give visa waivers and immigration is faster if you have a biometric passport. So palestinians want to be able to say we have visa waivers with countries X,W and Z which gives more legitimacy to the idea of a state. Other than some limited convenience though it serves very little purpose but the system will cost billions, it will be very collocated as palestinians do not have the institutions of state to set up with ease. If the palestinians are so short of money then where do the find the funds for an expensive biometric database when there are much more important things that NEED investment and will of course have to be neglected so the palestinian politicians can have their symbol of statehood.
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from the article: Palestinian Authority to launch biometric database next year