Is this based on real events as it's stated on beginning?

When it's supposed this movie to be dated, what time - 90's? It's not for sure after 2000, because I haven't seen there cellphones and those two guys are using phone booth (what's really strange thing for many years). I'm guessing 90's, because when they are talking at 01:05:55 they are saying something about "last concert in 1988". So my (third) question is, were those relationships between Izraelis and Egyptians in 90's so cold/not normal as is trying to state movie?