By Rafik Omar
Arab leaders endorsed a US$53 billion (£41 billion) plan to rebuild war-torn Gaza at an emergency summit in Cairo on March 4. The proposal, which was drawn up by Egypt and has been backed by France, Germany, Italy and Britain, rivals US president Donald Trump’s idea for the US to “take over Gaza” and permanently resettle its 2.1 million inhabitants.
Egypt’s reconstruction plan calls for Gaza to be rebuilt over five years. It is designed in three phases, structured to stabilise, reconstruct and develop the region into a self-sustaining economy. Gazans will remain in their homeland throughout.
The Palestinian militant group Hamas would be sidelined under the plan. Hamas, which has been the de facto governing body in the Gaza Strip since 2007, would be replaced immediately by an “administrative committee” made up of independent technocrats and non-partisan local figures.
According to the draft, the committee will manage the territory for a transitional period of six months. The Palestinian Authority (PA), which exercises partial control over several areas of the Israeli-occupied West Bank and is unpopular among Palestinians, would then fully resume control of the enclave.
The White House and the Israeli foreign ministry both rejected Egypt’s proposal. Brian Hughes, the White House National Security Council spokesman, said the plan did “not address the reality that Gaza is currently uninhabitable, and residents cannot humanely live in a territory covered in debris and unexploded ordnance.”
Trump has described the plan as “lacking” certain critical aspects. He emphasised the necessity of addressing security concerns, particularly the disarmament of Hamas, to ensure lasting peace and stability in the region. The Israeli prime minister, Benjamin Netanyahu, has previously ruled out either Hamas or the PA taking control in Gaza.
The US special envoy to the Middle East, Steve Witkoff, has since walked back the Trump administration’s opposition to the plan.
“We need more discussion about it, but it’s a good faith first step from the Egyptians,” Witkoff said to reporters outside the White House on March 6.
Reconstructing Gaza
The first phase of the plan will take place over a period of about six months. The focus will be on removing debris, clearing unexploded ordnance and providing temporary housing for those displaced by the conflict. The goal will be to stabilise the humanitarian situation and establish the foundations for more extensive rebuilding efforts.
The second phase, which will take place over two years, represents the core of the rebuilding process. The aim is to build 200,000 housing units, while restoring essential services such as electricity, water, road networks, schools and hospitals. These developments are expected to cost US$20 billion, and will be critical for reestablishing adequate living standards for Gaza’s residents.
Progress reports will be presented at donor summits twice a year to ensure accountability and efficiency. International funders will evaluate progress and adjust funding allocations if necessary.
The final phase, which will last two-and-a-half years, is designed to transform Gaza into a thriving and self-sustaining economy. This stage prioritises the establishment of industrial zones, as well a seaport, technology hub and coastal tourism facilities – all aimed at creating employment opportunities and boosting trade.
A key element of the economic development phase involves issuing business grants and investment incentives to encourage entrepreneurship and attract foreign direct investment.
Egypt has proposed the creation of an internationally supervised trust fund to channel financial support for the project from international donors. Key contributors are expected to include wealthy Gulf states such as Saudi Arabia and the United Arab Emirates (UAE), alongside the EU and other international bodies.
Donor conferences will soon be held to mobilise resources, secure binding commitments from participating nations, and establish mechanisms to ensure transparency and accountability in fund allocation and utilisation.
Stumbling blocks
Reaching a consensus on Hamas’s future involvement in Gaza is one of the biggest challenges facing the plan. The UAE has said it is unwilling to fund Gaza’s reconstruction if Hamas remains in power. Egypt, on the other hand, has suggested integrating other armed Palestinian factions into Gaza’s future governance structure to reduce the influence of Hamas.
Sidelining Hamas completely may lead to resistance and internal conflict. Hamas has previously dismissed reconstruction proposals that seek to exclude it from Gaza’s administration. The group argues that such plans undermine its authority and the will of the Palestinian people.
Ensuring a smooth transition to the PA’s administration will require careful negotiation and consensus-building among Palestinian factions.
Egypt’s plan also suggests that an international peacekeeping force could be deployed in Gaza during the transition period to prevent militant groups like Hamas from regaining control. This proposal is likely to be rejected by Israel and Hamas.
Israel fears that the deployment of international troops near its borders could limit its military operations against Palestinian militants. And in July 2024, when the UAE called for a multinational force to deploy to Gaza, Hamas publicly warned that it would treat any permanent foreign military presence in Gaza as hostile.
But, perhaps most importantly, the reconstruction of Gaza will only be possible should the current ceasefire be sustained. The ceasefire, which came into force on January 19, is in a precarious state. Israel has blocked the entry of humanitarian aid into Gaza and has now ordered all of its electricity supply to be cut off.
Any resurgence of hostilities between Israeli troops and Palestinian militants will deter potential investors in Gaza, while making any attempt at starting reconstruction impossible.
