Egypt’s Plan To Rebuild Gaza, Hurdles That Would Affect The Ambitious $53 Billion Plan

A coalition of Arab states, led by Egypt, has endorsed a roadmap for rebuilding Gaza under what is being called the “comprehensive Arab plan.”

This initiative serves as a direct counter to President Donald Trump’s proposal, which aims to redevelop the territory into what he describes as the “Riviera of the Middle East” while displacing Palestinians.

The White House has effectively dismissed the Arab plan, arguing that it does not sufficiently address the current state of Gaza.

“The current proposal does not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance,” National Security Council spokesman Brian Hughes said in a statement, reaffirming the administration’s support for Trump’s redevelopment vision.

The Arab plan estimates that Gaza’s reconstruction will require $53 billion, a figure previously released in a joint report by the UN, EU, and World Bank last month.

The nearly 100-page document, titled “Gaza 2030,” bears Egypt’s presidential logo and was discussed during an emergency summit in Cairo on Tuesday. It seeks to diminish Hamas’s influence and eventually transition governance of the besieged enclave to the Palestinian Authority.

In their final communique, Arab states called upon the international community and “international and regional financing institutions to quickly provide the necessary support for the plan.”

While the proposal does not specify exact sources of funding, contributions could come from Europe and wealthier Gulf nations such as Saudi Arabia and Qatar.

However, the plan has faced criticism for failing to address key concerns, including governance, Hamas’s future role, and funding.

These gaps pose “some real obstacles to becoming reality,” Paul Musgrave, an associate professor of government at Georgetown University in Qatar, told Dan Murphy.

“It’s a wonderful document, but it’s also something that I’m not sure is really a serious plan, because it does dodge the two biggest questions.

One, would Hamas ever agree to the political preconditions for making this grand vision a reality? Two, would the Israelis ever agree to allowing the kind of political settlement [of] a unified Palestinian Authority back in Gaza,” Musgrave said.

Israel has strongly opposed the plan, insisting that before any discussions on aid or an extended ceasefire take place, Hamas must first release all remaining Israeli hostages held in Gaza.

Israel’s Foreign Ministry criticized the proposal, stating that it “fails to address the realities of the situation following October 7th, 2023, remaining rooted in outdated perspectives,” while expressing support for President Trump’s proposal.

Meanwhile, the summit’s communique also backed the idea of “an international conference for early recovery reconstruction in the Gaza Strip,” which is set to take place later this month in Cairo in coordination with the United Nations.

As part of its efforts, Arab states announced plans to establish “a trust fund” under the supervision of the World Bank. This fund would serve as a repository for financial pledges from donor countries and international financial institutions to facilitate early recovery and reconstruction projects.

Rebuilding Gaza

In what is the most detailed reconstruction plan for Gaza to date, the document outlines a three-phase approach with a target completion year of 2030.

The first phase, spanning six months and costing $3 billion, will focus on clearing rubble from designated areas. Temporary housing will be provided at seven locations, accommodating more than 1.5 million displaced individuals during the reconstruction process.

The second phase, set to last two years at an estimated cost of $20 billion, will focus on building housing units for 1.6 million people and restoring essential facilities, services, and infrastructure.

The third and final phase, lasting two and a half years and requiring $30 billion, will continue the establishment of critical facilities, networks, and service buildings. Additionally, it will provide housing for another 1.2 million people, with the ultimate goal of accommodating 3 million residents.

Governance in Gaza

The plan does not account for Hamas’s future role in the territory but does propose an interim governance structure.

Under this framework, “an administration will take over the management of the Gaza Strip’s affairs in a transitional phase for 6 months, an independent committee consisting of technocrats and non-factional figures, under the umbrella of the Palestinian government.”

Arab states have stated that their ultimate objective is to facilitate the full return of the “Palestinian National Authority to the Gaza Strip.”

The proposal also calls for “holding presidential and legislative elections in all Palestinian areas one year from now if the appropriate conditions are available.”

A senior political official from Hamas, in a statement, said that the group supports the idea of elections, emphasizing that it has long been a demand to give “the Palestinian people the chance to choose their representative leadership and their political pathway.”

Uncertainty remains regarding whether Hamas will agree to disarm. However, the group told that the Arab plan contains “positive elements as well as a road map that is suitable to be a practical proposal.”