The embassy in Dhaka stated that Sweden would be increasing aid to the Palestinians after recognizing their state, a move that was praised by the Palestinian president and criticized by Israel. Sweden is the first long-term EU state to recognize Palestine, following their Prime Minister's announcement of support for a two-state solution. The decision was made based on international law criteria being met, with the aim of facilitating peace talks and creating a future where Israel and Palestine can coexist peacefully. The Palestinians have long sought statehood in the West Bank, including East Jerusalem and Gaza, with previous recognition from about 100 countries. The UN upgraded their status to a "non-member observer state" in 2012. The Swedish Foreign Minister stated that the decision was made to bring a new dynamic to the stalled peace process, with hopes that other EU countries would follow suit. Additionally, Sweden adopted a five-year aid strategy with increased support for Palestinian state-building and humanitarian assistance, aiming to empower women, promote democracy, human rights, and gender equality in Palestine.