The Palestinians took control of a border for the first time with the opening today of the Rafah crossing between Gaza and Egypt.

The event was celebrated as a milestone on their rocky path to independence and a rare moment of joy for the residents of Gaza.

The inauguration of the crossing, attended by scores of local and international dignitaries, was hailed as the beginning of a new era for Palestinians, but especially the people of Gaza, badly demoralized after five years of bloody fighting with Israel.

"From this moment, we feel that we are free," said Fathia Najar, 55, one of a group of Palestinian travelers waiting to cross the border when the terminal begins operations tomorrow. "Before this, we lived in a jail."

The opening of the border - under an agreement with Israel - bolstered Mahmoud Abbas’s message that independence can only be won through negotiations, and gave the Palestinian leader a boost ahead of parliamentary polls on January that will be contested by Islamic Hamas group.

Observers reported that officials were almost giddy with optimism as they addressed the 1,200 guests at the ceremony in a large tent outside the terminal. "This is a great day. It is a day of happiness... because it means an enormous step forward toward the freedom of the Palestinian people," said Marc Otte, the EU representative in the Middle East.

Mr Abbas said that he hoped the Palestinians’ new gate to the world would spur investment, but said there can be no economic recovery without an end to the rampant lawlessness in the Palestinian territories. "The magic key that can give us everything is the key of security," he said.

After the speeches, Mr Abbas took a short tour of the crossing with Egyptian intelligence chief Omar Suleiman. As he approached the immigration desk, Mr Abbas pulled out his red diplomatic passport and told the clerk: "Check it out."

"You have to?" Mr Suleiman asked.

"You never know. I might be wanted," Mr Abbas replied.

Israel shut the Rafah crossing before pulling out of Gaza in September, after 38 years of occupation. International officials made reopening Rafah under Palestinian control a top priority, to give Gazans concrete proof that their lives were improving after the withdrawal.

Israel had been reluctant to let the Palestinians control the crossing, fearing that militants and weapons would be able to cross. But Israel gave in and agreed last week - after months of international mediation and a final push by the US Secretary of State, Condoleezza Rice - to let the Palestinians run the crossing under the gaze of European monitors.

In preparation for the opening, Palestinian workers renovated the terminal, painting the walls, replacing the ceiling tiles and fluorescent lights and installing blocks of computers. Rows of blue and orange chairs filled the hall. New metal detectors and X-ray belts stood nearby.

A new banner over the entrance read: "Rafah crossing: the gateway to freedom."

The crossing is not expected to have an immediate impact on Gaza’s economy, but eventually, Gaza residents will be able to export major cargo through Rafah, providing an alternative to the Karni cargo crossing into Israel, said Nigel Roberts, the World Bank’s regional director.

Palestinians will only be allowed to import goods from Egypt through a terminal being built at the junction of Israel, Egypt and Gaza that will be partially controlled by Israel. Israel also retains control of Gaza’s coast and its airspace.

The Rafah crossing will operate initially for only four hours a day until all 70 of the European monitors can arrive and get settled. Eventually, it will be opened 24 hours a day, Palestinian officials said.

Dozens of Palestinians gathered outside the terminal, sitting in green plastic chairs under the shade of a metal awning and hoping the passage might open a day early to let them through.

"It’s a good start," said Aida Abu Nahel, 55, who was waiting to visit her three daughters in Cairo. "You cannot go up the whole staircase in one leap. You have to go one step at a time."

Times Recommends

• UN may halt 400-year-old 'freedom of the seas'
• Where the Rosetta belongs can’t be set in stone
• Gas deal on hold, but Ukraine may pay in the end