Unlike Jordan--which laid claim to the West Bank after 1948 and did not renounce it for 40 years--Egypt did not annex the Gaza Strip, it merely claimed to be administering it on behalf of the people of Gaza in the interim between 1948 and 1967.

Sadat's main focus during the negotiations was the return of Egyptian territory (the Sinai), which, he claimed would put Egypt in a better position to help negotiate a settlement for the Palestinians -- trying to negotiate Egyptian sovereignty over Gaza would have been problematic for other Arab nations, most of whom were already very unhappy about Egypt negotiating peace with Israel in the first place (in their view, the Palestinian issue should have been resolved first before the Egyptian peace accord, but the loss of territory had been a huge blow to Egypt in 1967 and Sadat, who was not a very popular president, also wanted to boost his standing in Egypt).

Lawrence Wright's book Thirteen Days in September about the negotiations goes into some detail about what each party wanted and why.