The Palestinians do not have a navy. When the Oslo agreements were set up in 1993, it was the first time Israel and the Palestine Liberation Organization (PLO) agreed to formally recognize each other and they also agreed to negotiate peace. Also as part of the Oslo agreement, Israel was given military control, which meant the Palestinians did not need an army or a navy.
It may be interesting to note the Oslo agreement is not a peace treaty but more a “Declaration of Principles”. It is named for Oslo, Norway’s capital where the talks between Israeli and PLO officials were conducted in secret.