That is incorrect.
In accordance with the United Nations Partition Plan (1947), both the Arabs and the Jews were offered some land, and the possibility of having their own state. The Arab League was opposed to any partition whatsoever, wanting to keep all the land for themselves, and especially opposed to the establishment of Israel. Israel accepted the UN offer, and the Arabs (who have since 1964 re-branded and re-marketed themselves as Palestinian) declined, deciding instead to persuade their co-religionists (Egypt, Iraq, Lebanon, Saudi Arabia, Transjordan, Syria and Yemen) to join them in attacking Israel, whose sovereignty they refused to acknowledge.
From the very first day they tried to eradicate Israel.
Israel became an independent state on 14 May 1948 and the very next day, on 15 May 1948, Israel was attacked, by 8 different armies.
Had they won there would not be the current situation of stateless Palestinians. It is more likely that Jordan would have annexed most of the region, rather than setting up another Arab country.
But they lost, losing in battle, even the territory offered to them by the UN, which they had previously declined.
Tragically, the Palestinians themselves are the authors of their own loss, their self-assured hubris, leading to nemesis, which ultimately resulted in self-inflicted retributive justice. This loss is known in Arabic as al-Nakba (The Catastrophe), although more accurately it should be called The Debacle.
As a result of this war, Israel kept the original territory offered to them by the UN Partition plan, plus gained 60% of the territory allotted to the Arabs, (let me repeat: which they had rejected),
Egypt occupied the Gaza Strip and Jordan annexed (illegally) the West Bank and East Jerusalem.
To clarify, in 1947 most of the land set aside by the UN Partition Plan for an Arab State in the West Bank and East Jerusalem became occupied territory, but occupied by Jordan, not by Israel.
^^
That seems simple enough.