The Israeli cabinet on Sunday voted to investigate the challenges and benefits of creating artificial islands off the nation's shoreline, the country's Prime Minister's Office said.

"Our state is small and crowded," Israeli Prime Minister Benjamin Netanyahu said at the weekly cabinet session, noting that "Therefore, the idea of artificial islands has spatial, economic and security logic for us."

Israel, with 7.8 million residents, is roughly the size of Wales, Britain, or the American state of New Jersey.

After a year's study, the interministerial steering committee will present its findings on the ramifications of creating artificial areas that would include an airport, plants, power stations, and other infrastructure, according to a statement sent to Xinhua.

Netanyahu said the idea presented Israel with "numerous possibilities."

Some 20 nations have constructed man-made islands, including Japan, which erected an entire airport on an artificial island, and the United Arab Emirates, which have several such massive projects underway.

Considering the possible environmental impact involved in such an undertaking, Science and Technology Minister Daniel Hershkowitz told Army radio on Sunday that "We just have to make sure that they cause no damage to the sea and coast."

However, Teva VaDin, a spokesperson for the local environmental group Adam said that such structures along the coast would erode beaches, since they would block the natural accumulation of sand washed ashore, according to The Times of Israel.