I think you might look at the history.  The government was radically opposed to settlements during the Camp David era.  Now that is dead, they are building, perhaps hoping to put pressure on the Palies to make some haste.

 

 The Israelis don't realize that their ultimate security comes from more people, living within defensible borders, neither of which they have now.  It seems that the settlements are just symbolic display.   Had Israel been serious they would have claimed Judea and Samaria by right of conquest, won in a defensive war.  The late Dr. Schwebel of the World Court believed that as do many others.  

 

If it were me, I would buy out any locals who wanted to sell, and provide a secure means of payment for them. Roger Williams had the right idea.  Further the more productive Israelis would make everyone, Jew or Gentile, more prosperous with true protection under the law, better than the lying corrupt Palie governments.

 

Finally, we forget that Islam is a success gospel: if you win, like the Saudis you have the favor of Allah, if not you, by definition are an unrighteous toad.  Islam makes noises, but they see the Palies as  losers, who are getting the divinely inspired desserts.