Arab leaders have approved an Egyptian proposal to rebuild Gaza at an estimated cost of $53 billion, while ensuring that Palestinians remain in the enclave. Egyptian President Abdel Fattah al-Sisi announced the plan’s adoption at the conclusion of a summit in Cairo on Tuesday.
The proposal, welcomed by Hamas but criticized by Israel, aims to address Gaza’s governance and funding for reconstruction.
Sisi expressed confidence that President Trump could broker a lasting peace in the region. A key issue remains who will govern Gaza and which nations will contribute the billions needed for reconstruction. Egypt has coordinated with Palestinian officials to establish an administrative committee composed of independent Palestinian technocrats, tasked with overseeing humanitarian aid and managing Gaza’s affairs on an interim basis before the return of the Palestinian Authority (PA).
Hamas released a statement endorsing both the reconstruction plan and the formation of the administrative committee. PA President Mahmoud Abbas also welcomed the proposal and urged Trump to back the plan. Abbas reiterated that the PA is the only legitimate governing and military authority in Palestinian territories and stated he was prepared to hold presidential and parliamentary elections if conditions allowed.
Israel called the Egyptian plan “rooted in outdated perspectives,” objecting to its reliance on the PA while criticizing its lack of measures to remove Hamas from power.
Palestinian Prime Minister Mohammed Mustafa stated that the reconstruction fund would seek international financial backing and oversight, likely through the World Bank. The UAE, which views Hamas as a threat, has called for the group’s immediate disarmament, while other Arab nations favor a phased approach, according to sources. A Saudi official noted that Hamas’ continued military presence remains a major obstacle, as both Israel and the U.S. oppose any plan that leaves the group armed.
Egypt’s 112-page reconstruction plan includes detailed maps and AI-generated images depicting new housing, community centers, a commercial harbor, a technology hub, beach hotels, and an airport.
