Arab and Muslim states won’t necessarily make up any budget shortfall if the EU and USA stop funding the PNA. Many Arab governments would be deeply unhappy at seeing Islamists in government and even though they do not like Israel, they have no wish to inflame the situation further. More moderate countries in the region recognise Israel and want the peace process to move forward so would be just as likely to demand that a terrorist group gives up terror and disarms as the west. Iran may be more sympathetic, but almost all Palestinians are Sunni rather than Shia Muslims, and Iran has its own international problems such as sanctions that are making an economic impact so it may not be in a position to subsidize other governments.  There is also no evidence that the Palestinians would turn to such states. In December 2007, 87 countries and international organisations, including Serbia and Nicaragua, pledged to donate $7.4 billion to the PNA over three years. [1] This amount is far more than previous US and EU funding and there is no evidence that its acceptance has led to Palestine depending on anti-Israel regimes.  [1] Stotsky, Steven. “Does Foreign Aid Fuel Palestinian Violence?” Middle East Quarterly. Summer 2008.