Arab leaders have approved a $53 billion plan to rebuild Gaza, countering U.S. President Donald Trump’s controversial proposal to depopulate the Palestinian enclave.
This decision was made at an emergency Arab League summit in Cairo, where Egypt presented its ambitious reconstruction initiative while emphasizing Gaza’s Palestinian identity. The meeting, attended by key regional leaders, reaffirmed opposition to any forced displacement of Palestinians.
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“The Egypt plan is now an Arab plan,” declared Arab League Secretary-General Ahmed Aboul Gheit, emphasizing the rejection of any form of displacement, whether voluntary or forced.
Alternative to Trump’s ‘Middle East Riviera’
Egypt’s initiative directly challenges Trump’s proposal, which suggested U.S. control over Gaza and the relocation of its population to neighboring countries. This plan, widely criticized as ethnic cleansing, envisioned transforming Gaza into a luxury coastal hub under American influence.
Trump, who has called Gaza a “demolition site,” recently shared an AI-generated video on his Truth Social platform depicting a futuristic, extravagant Gaza with a golden statue of himself, Netanyahu sunbathing, and Elon Musk enjoying snacks by the beach. The video has sparked widespread outrage in the Arab world.
In contrast, Egypt’s 91-page reconstruction plan focuses on preserving Palestinian political rights. President Abdel Fattah al-Sisi stressed the importance of a two-state solution, though Israeli Prime Minister Benjamin Netanyahu continues to reject such an approach.
Three-Phase Reconstruction Plan
Egypt’s proposal outlines a structured, five-year reconstruction strategy worth $53 billion, in collaboration with the Palestinian Authority (PA), potentially bringing the PA back to Gaza after 17 years.
- Phase 1 (6 months): Clearing debris, removing unexploded ordnance, and restoring Salah al-Din Street. Temporary housing for 1.2 million displaced Palestinians and repairs for 60,000 damaged buildings will also be undertaken.
- Phase 2 (2 years, $20 billion): Rebuilding essential infrastructure, including water, electricity, and telecom systems.
- Phase 3 (2.5 years, $30 billion): Large-scale development, including permanent housing, an industrial zone, a commercial port, and an international airport.
A Gaza Management Committee made up of independent Palestinian technocrats will oversee governance, sidelining Hamas. While Hamas has signaled a willingness to step back from administrative control, it remains firm on rejecting disarmament, a key Israeli demand.
Security and Financial Backing
Security remains a major concern. The plan suggests deploying UN peacekeepers to Gaza, while Egypt and Jordan have committed to training Palestinian security forces.
Funding is expected from Gulf states, the UN, and international financial institutions. However, investors remain cautious due to Gaza’s history of repeated destruction.
“Wealthy nations may be willing to invest, but no one wants to build only to see everything destroyed in another war,” noted an Arab diplomat present at the summit.
Challenges from Israel and the US
Despite strong Arab backing, the plan faces significant opposition from Israel and its allies. Netanyahu’s government opposes the PA’s return to Gaza and remains committed to eliminating Hamas.
Israel has reiterated its support for Trump’s vision, aligning with far-right views that advocate for Gaza’s depopulation. In response to the summit, an Israeli official stated, “Arab states need to move beyond past constraints and focus on regional security.”
Egypt strongly rejected Israel’s stance, with Foreign Minister Badr Abdelatty calling it “unacceptable” and condemning Netanyahu’s policies as “extremist and stubborn.”
While the Arab League’s endorsement of the Egyptian plan is a significant diplomatic step, its success hinges on overcoming Israeli resistance and securing stable financial commitments.
