Saudi Analyst Tells TML Egypt’s $53 Billion Gaza Reconstruction Plan May ‘Face Major Obstacles’
Egypt’s plan to rebuild Gaza has been endorsed by the Arab League, the Organization of Islamic Cooperation, and several European states, but a lack of funding along with opposition from the US and Israel might stop the plan in its tracks
[Manama] Officials from Arab nations approved Egypt’s $53 billion plan to rebuild Gaza on Tuesday. The plan, which Egyptian President Abdel Fattah el-Sisi presented at the extraordinary summit in Cairo, aims to provide an alternative to US President Donald Trump’s plans to relocate Palestinians from Gaza and take US control over the enclave.
The Arab League statement released after the summit warned against “any sinful attempts to displace the Palestinian people from their land,” saying that such attempts constitute a “threat to peace in the Middle East.” The strategic choice of the Arab League remains the achievement of peace and stability through a two-state solution, the statement read.
On Thursday evening, the Egyptian Foreign Ministry said that the plan “will include the removal of 50 million tons of rubble, the removal of unexploded ordnance, the provision of temporary housing units, the construction of a total of 460,000 permanent housing units, and the restoration of basic services, networks and facilities” in Gaza.
The situation may worsen if the international community does not assume its responsibility to end the war, alleviate the suffering, and ensure the achievement of lasting peace
Representatives at last week’s summit included Bahrain’s King Hamad bin Isa Al Khalifa, Iraqi President Abdul Latif Rashid, and interim Syrian President Ahmed al-Sharaa. United Nations Secretary-General António Guterres also spoke at the summit, calling attention to the immense suffering experienced by the Palestinians over the course of the war in Gaza. “The situation may worsen if the international community does not assume its responsibility to end the war, alleviate the suffering, and ensure the achievement of lasting peace,” he said.
Egyptian Foreign Minister Badr Abdelatty said in a statement following the summit that he would ask the Organization of Islamic Cooperation to adopt the plan. On Friday, that group voted to endorse the plan, according to media reports.
On Saturday, the foreign ministers of France, Germany, Italy, and the UK released a joint statement expressing their support for the proposal, describing it as a “realistic path to the reconstruction of Gaza.”
The US has sent mixed signals about its support for the plan. On Thursday, US special envoy to the Middle East Steve Witkoff described the proposal as a “good faith first step” with positive features, but later that day, a spokesperson for the State Department called it ” inadequate.”
Israel swiftly rejected the plan, with Ministry of Foreign Affairs spokesperson Oren Marmorstein posting on X on Tuesday that the proposal was stuck in an old paradigm intent on keeping Palestinian refugees. “Now, with President Trump’s idea, there is an opportunity for the Gazans to have free choice based on their free will. This should be encouraged! Instead, Arab states have rejected this opportunity, without giving it a fair chance, and continue to level baseless accusations against Israel,” he wrote.
A draft of the Egyptian plan obtained by The Media Line includes the formation of a committee to manage affairs in the Gaza Strip during a six-month transitional phase. The committee would consist of independent Palestinian technocrats not associated with any of the political factions and would work under the umbrella of the Palestinian government.
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Egypt would also train Palestinian security cadres to ensure stability throughout the next phase, during which the Palestinian Authority would be put in control over Gaza.
The plan extensively addresses rebuilding Gaza, which it estimates will cost $53 billion over five years. According to the Egyptian draft, the total material damage to the Gaza Strip since the war began amounts to $29.9 billion, along with economic and social losses amounting to $19.1 billion.
The first stage of rebuilding, set to extend until 2027, would focus on reestablishing utilities, building and restoring permanent housing units, and reclaiming about 20,000 acres of agricultural land. The $30 billion second stage includes establishing industrial zones, a fishing port, a seaport, and an airport.
According to the plan, temporary housing will be provided in seven locations throughout the strip for those displaced during the reconstruction process. The planned temporary housing is meant to accommodate more than 1.5 million residents.
The summit’s final statement noted that a trust fund would be established to collect financial pledges toward the project.
There are more than 50 countries that agree with it, and Egypt and the rest of the Arab countries will certainly seek to attract more support from countries around the world. We are very optimistic.
Mohamed El Azhar, an Egyptian political analyst, said that the plan has received “great support from Arab and Islamic countries.” “There are more than 50 countries that agree with it, and Egypt and the rest of the Arab countries will certainly seek to attract more support from countries around the world. We are very optimistic,” he told The Media Line.
He said that Egypt was singularly capable of managing Gaza’s reconstruction. “It is the closest country to it, and all aid enters through it,” El Azhar said. “Gaza has no borders other than with Israel and Egypt, so Egypt knows everything the strip needs, and it also knows how to manage things realistically.”
Iraqi political analyst Abdul Redha Al-Saffar said that the Arab summit came too late, more than a month after President Trump announced his plan for Gaza on February 4.
“There are moves by Israel to restart the war in Gaza, which means we are back to square one,” Al-Saffar told The Media Line. “So this plan is up in the air and will not succeed.”
He said that Israel had successfully weakened many of its rivals, including Hezbollah and groups based in Gaza and Iraq, making the country less susceptible to pressure.
Abdullah Ghanem, a Saudi political analyst, told The Media Line that the plan may “face major obstacles before its implementation.”
He noted that the plan made no mention of Hamas, the group that has controlled Gaza since 2007 and that was responsible for the October 7, 2023, attacks on Israel, alongside numerous other terror attacks. “This will lead to the US administration rejecting the plan, and Israel rejecting it as well,” Ghanem said.
“Perhaps the Islamic countries will support this plan, but it is also important for America, Europe, and Israel to support it,” he continued.
Abdul Latif Assaf, a Palestinian journalist living abroad, similarly described the US and Israeli reluctance to support the plan as “the biggest challenge” regarding its implementation.
The Arab countries will not be able to provide $53 billion, the US administration will not pay, and the countries of the world are all suffering from a weak economy, so who will bear the cost?
“The other challenge is who will bear the cost,” he told The Media Line. “The Arab countries will not be able to provide $53 billion, the US administration will not pay, and the countries of the world are all suffering from a weak economy, so who will bear the cost?”
He said that Gazans themselves will get behind any proposal that allows them to return to normalcy and remain in Gaza.
“The people of Gaza just want to return to their homes and live in peace and quiet, away from Israeli or Hamas threats,” he said.
