At an emergency summit held in Cairo, Egypt on 4 March, Arab leaders approved a US$53-billion (PS41-billion) reconstruction plan for Gaza. Egypt’s proposal was backed by France and Germany and endorsed by Britain and Italy. It is a direct rival to the US President Donald Trump’s plan for America to “take over Gaza” and resettle permanently its 2.1million inhabitants.
Gaza will be rebuilt in five years according to Egypt’s plan for reconstruction. The plan is divided into three phases and is structured in a way that will stabilize, rebuild, and transform the area to a self-sustaining economic system. Gazans are expected to remain in Gaza throughout.
Hamas, the militant Palestinian group that has ruled Gaza since 2007, would not be included in this plan. Hamas which is the Gaza Strip’s de facto ruling body since 2007 will be immediately replaced by an “administrative panel” consisting of non-partisan and independent local technocrats.
The draft states that the committee would manage the area for six months during a period of transition. After six months, the Palestinian Authority (PA), who has partial control of several West Bank areas occupied by Israel and are unpopular with Palestinians would regain full control.
Both the White House and Israel’s foreign ministry rejected Egypt’s proposal. Brian Hughes, spokesman for the White House National Security Council, stated that the plan “did not address the fact that Gaza is uninhabitable at the moment and residents can’t humanely survive in a land covered in debris or unexploded ordinance.”
Trump said that the plan “lacks” some critical elements. To ensure peace and stability, he stressed the importance of dealing with security issues, including the disarming of Hamas. Benjamin Netanyahu, the Israeli Prime Minister, had previously denied that Hamas, or even the PA, could take control of Gaza.
Steve Witkoff has, since then, retracted the Trump administration’s initial opposition to this plan. Witkoff told reporters on March 6 that “we need to have more discussions about it but this is a first good-faith step by the Egyptians.”
A group shot of Arab leaders at a Cairo emergency summit to discuss Gaza reconstruction.
Royal Hashemite Court Handout / EPA
Reconstructing Gaza
First phase will last for about 6 months. Focus will be placed on clearing debris and unexploded ordinance, as well as providing temporary housing to those who have been displaced due to the conflict. Stabilising the human situation will allow for a more comprehensive rebuilding effort.
Second phase: The core of rebuilding will be the second two-year phase. It is hoped to rebuild 200,000 houses, and restore essential services like electricity, water, roads, schools, hospitals, etc. The cost of these developments is expected to be US$20 billion. They will also play a crucial role in restoring Gazans’ living standards.
To ensure accountability, progress reports will be provided at the donor summits every two years. The international funders will assess the progress made and make adjustments to funding allocations as necessary.
Gaza will be transformed into an economy that is self-sustaining and thriving in the final phase. It will take two-and-a half years. The establishment of an industrial zone, a technology hub, a coastal tourism facility, and establishing a port are all priorities in this stage. They will create employment and boost trade.
The economic development phase includes the distribution of business grants and incentives for investment to promote entrepreneurship and encourage foreign direct investment.
Egypt proposes the creation of a trust fund under international supervision to funnel financial support from donors for the project. Saudi Arabia, the United Arab Emirates and other wealthy Gulf countries are likely to be the main contributors.
Soon, donor conferences will be held in order to mobilize funds, to secure commitments and to establish mechanisms for ensuring transparency and accountability.
Stumbling Blocks
The plan faces a number of challenges, including reaching a consensus about Hamas’s involvement in Gaza. UAE said that it would not fund Gaza reconstruction as long as Hamas is in control. Egypt has, however, suggested that other Palestinian armed factions be integrated into Gaza’s governance structure in order to lessen the influence Hamas.
Hamas’s exclusion could lead to internal conflicts and resistance. Hamas rejected proposals to exclude the group from Gaza administration in previous reconstruction plans. Hamas argues such plans undercut its authority as well as the will of Palestinian people.
To ensure a smooth transfer to the PA administration, careful negotiations and building consensus among Palestinian factions will be required.
Hamas rejected earlier proposals to exclude the group from Gaza administration.
Mohammed Saber / EPA
Egypt’s proposal also proposes that a peacekeeping international force be deployed to Gaza in the interim period, so as to stop militant groups such Hamas regaining power. Israel and Hamas are likely to reject this proposal.
Israel is concerned that the presence of international forces near its border could restrict its ability to fight militants in Palestine. Hamas warned in public in July 2024 that any foreign presence permanent in Gaza would be considered hostile by Hamas.
The reconstruction of Gaza is only possible if the ceasefire continues. It is dangerous to continue the ceasefire that was declared on January 19. Israel blocked humanitarian aid from entering Gaza, and now has ordered the complete cutoff of Gaza’s electricity.
Resumption of violence between Israeli soldiers and Palestinian militants would deter investors from Gaza while making it impossible to start reconstruction.
