KHAN YOUNIS, Gaza (Reuters) - If you believe the building plans, "Media City" will be a Disneyland fused with Hollywood and the CNN Centre on the shores of the Mediterranean.

There's only one catch: it's in the Gaza Strip.

Workers at this ex-Jewish settlement go in fear of Israeli air strikes, while there is a blockade on building materials.

And the Hamas Islamists backing the site -- envisioned as a combined amusement park, movie studio and hub for international journalism all in one -- say foreign filmmakers will be welcome, as long as their works don't show people kissing.

But those setbacks and the reality of Hamas rule and Israeli sanctions have not discouraged Gaza Media City's backers, inspired by Arab examples in Dubai and Egypt that have drawn foreign investment and created jobs.

They have started work on landscaping in the hope that one day the project will feature a zoo and film lots that recreate among other things, the Palestinian villages of a century ago and today's Israeli settlements...