Palestinian business groups have called off a showcase government-backed conference for overseas investors after Israeli authorities made a last-minute decision not to allow Arab participants to attend, Mazen Sinakrot, Palestinian Authority economy minister said yesterday.

Cancellation of the meeting, widely promoted in the Arab world and scheduled to take place in the West Bank town of Bethlehem next month, was seen as exacerbating Palestinian economic isolation in the wake of elections that brought Hamas to power.