Published on: March 6, 2025
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Arab leaders have adopted an Egyptian-led plan to reconstruct Gaza with a budget of $53 billion, without including the forced displacement of Palestinians. The move is seen as a direct challenge to former U.S. President Donald Trump’s controversial “Middle East Riviera” proposal, which aimed to relocate Palestinians under U.S. administration.
Arab Endorsement, U.S. and Israeli Rejection
Egyptian President Abdel Fattah el-Sisi announced during a Cairo summit that Arab leaders had unanimously approved the reconstruction plan, with Hamas also expressing conditional support. However, the initiative faced strong opposition from Israel and the United States.
In his address, Sisi stated:
“Gaza has been completely devastated by Israeli military aggression, and we must take urgent steps to rebuild.”
One of the unresolved issues remains: Who will govern Gaza after the war? Additionally, questions persist regarding which nations will finance the reconstruction process.
Post-War Gaza Administration
Sisi revealed that Egypt, in coordination with Palestinian stakeholders, has proposed an administrative committee composed of independent Palestinian technocrats to temporarily manage humanitarian aid and governance in Gaza. This arrangement would remain in place until the Palestinian Authority (PA) resumes full control over the enclave.
The future role of Hamas remains a contentious issue. The group, which led the October 7 attack on Israel, resulting in 1,200 deaths and over 250 hostages, has been at the center of the ongoing war. In response, Israel’s military offensive has claimed over 48,000 Palestinian lives, with most of Gaza’s 2.3 million residents displaced.
Hamas’ Conditional Support Amid U.S.-Israeli Opposition
While Hamas agreed in principle to the Egyptian proposal, it declined to participate directly in the governance committee. However, it demanded a say in selecting its members and setting its agenda, ensuring the committee operates under the oversight of the Palestinian Authority.
On Tuesday, Egyptian Foreign Minister Badr Abdel Ati confirmed that the selection process for committee members had been finalized.
Meanwhile, Palestinian President Mahmoud Abbas endorsed the Egyptian proposal and urged the U.S. to support it, reiterating that the plan does not involve Palestinian displacement. Abbas also expressed willingness to hold presidential and legislative elections if conditions permit, emphasizing that the PA remains the only legitimate governing body in Palestinian territories.
Hamas also signaled its openness to elections under a mutually agreed framework.
Israeli and U.S. Responses
Israel’s Foreign Ministry rejected the plan, calling it “based on outdated assumptions” and expressing skepticism about the PA’s ability to govern Gaza. Israeli officials also objected to Hamas retaining any influence in Gaza’s future political landscape.
Similarly, the White House dismissed the Arab plan, with U.S. spokesperson Brian Hughes stating:
“The current proposal does not reflect the reality on the ground in Gaza, which has become uninhabitable due to extensive destruction and unexploded ordnance.”
Hughes reiterated that Trump remains committed to his own vision for Gaza’s reconstruction, which excludes Hamas entirely.
Funding Gaza’s Reconstruction: The Gulf’s Role
With an estimated $53 billion needed for reconstruction, the process will heavily rely on Gulf nations, particularly the UAE and Saudi Arabia, due to their financial capabilities.
Palestinian Prime Minister Mohammed Mustafa stated that a Reconstruction Fund will be established under international supervision, with potential oversight by the World Bank.
However, the UAE has set a strict condition for its participation:
Hamas must fully disarm before receiving any financial support.
Other Arab nations favor a gradual approach to disarmament, but sources suggest that U.S. and Israeli objections make this a difficult compromise.
Saudi Arabia also views Hamas’ continued military presence in Gaza as a major obstacle, given intense American and Israeli resistance to any political arrangement involving the group.
During the summit, Saudi Foreign Minister Prince Faisal bin Farhan stressed the need for international guarantees to maintain the ceasefire and reaffirmed support for PA-led governance in Gaza.
Hamas’ Position on Disarmament
Senior Hamas official Sami Abu Zuhri outright rejected Israeli and American demands for the group’s disarmament:
“The right to resistance is non-negotiable.”
In an interview with Reuters, Abu Zuhri dismissed foreign-imposed governance models, insisting that only Palestinians should determine Gaza’s future. He also rejected any foreign military presence in Gaza.
Since seizing control of Gaza from the PA in 2007, Hamas has maintained uncontested authority over the enclave, suppressing internal political dissent.
The Arab Alternative to Trump’s Plan
In recent weeks, Egypt, Jordan, and Gulf states have been coordinating on an alternative to Trump’s controversial forced displacement plan, which sought to remove Palestinians from Gaza and place them under U.S. administration. Arab leaders fear that such a move would destabilize the entire region.
A leaked draft of the summit’s final communiqué, reviewed by Reuters, explicitly rejects any large-scale Palestinian displacement.
The Egyptian Reconstruction Plan: A Vision for a New Gaza
The 112-page Egyptian proposal outlines detailed redevelopment plans, including:
• Urban residential projects
• Public parks and community centers
• A commercial seaport
• A technology hub
• Coastal hotels and a new airport
The plans include AI-generated images depicting a modernized Gaza, but skepticism remains over whether Israel will allow Arab nations to oversee Gaza’s governance.
Some Israeli officials have indicated that they might not oppose an Arab-led administration—but only if Hamas is entirely removed from power.
An Israeli government source reaffirmed:
“The main goal of the war is to dismantle Hamas militarily and politically. If Hamas agrees to disarm, it must happen immediately. Anything less is unacceptable.”
Hamas’ War Losses and Israeli Claims
Intelligence sources claim that Hamas has lost only a few thousand fighters throughout the war.
Israel, on the other hand, asserts that it has killed nearly 20,000 Hamas operatives, significantly weakening the group’s military structure.
Conclusion: A Contentious Path Ahead
The Egyptian-led Arab reconstruction plan presents a viable alternative to Trump’s controversial displacement proposal, but several major obstacles remain:
1. Hamas refuses to disarm, while the UAE, Israel, and the U.S. demand its full demilitarization.
2. Israel and the U.S. oppose any Hamas role in Gaza’s governance, while Arab nations seek a pragmatic approach.
3. Financing remains uncertain, as Gulf states hesitate to invest without security guarantees.
4. The Palestinian Authority’s legitimacy remains contested, with uncertainty over whether it can govern Gaza effectively.
As negotiations continue, the future of Gaza remains at a crossroads, with diplomatic battles shaping the region’s political landscape for years to come.
