Hamas sets up rocket production line in Sinai

Hamas has established forward bases and rocket production facilities in the Sinai Peninsula in an effort to protect them from Israeli air strikes. By establishing the facilities in Egypt, Hamas aims to protect its assets since it believes Israel will not strike targets inside Egypt due to the affect it would have on bilateral relations. More than a dozen Egyptian army battalions allowed into Sinai with Israel's permission are still operating there, although with limited success in stopping terrorist activity and arms smuggling to the Gaza Strip.