Arab League states endorsed a $53 billion postwar reconstruction plan for Gaza, spearheaded by Egypt, aimed at rebuilding the devastated enclave while preventing the displacement of nearly 2 million Palestinians.
The plan, approved at an emergency summit in Cairo on Tuesday, serves as a counterproposal to U.S. President Donald Trump’s controversial vision of transforming the region into a U.S.-controlled “Middle East Riviera.”
The high-profile meeting included key regional leaders such as the Emir of Qatar, the Vice President of the United Arab Emirates, and the Foreign Minister of Saudi Arabia, alongside United Nations Secretary-General António Guterres.
Three-Stage Reconstruction Plan
The Egyptian plan consists of three major stages: Interim measures ($3bn), reconstruction ($20bn) and governance ($30bn). The first stage would last about six months, while the next two phases would take place over a combined four to five years.
A six-month interim period would require a non-factional technocratic committee of Palestinians – operating under the management of the PA – to clear more than 50 million tonnes of debris, de-mine, construct 200,000 temporary housing units and restore about 60,000 partially damaged homes.
During the second phase the work of rubble removal would continue as well as the establishment of utility networks and the building of 200,000 more housing units.
Phase three would include completing housing for Gaza’s whole population, establishing the first phase of an industrial zone, opening of an airport, a fishing port, and a commercial port among other services.
The funding will come from international organizations, private sector investments, and donor states, with Cairo set to host a major international fundraising conference next month to secure the required capital.
Arab and International Reactions
Egyptian President Abdel Fattah el-Sissi emphasized that the initiative is not just about rebuilding Gaza but ensuring long-term regional stability.
“We welcome any proposals or ideas from the international community to ensure the success of this plan, which needs to be implemented side by side with a greater plan for peace,” Sissi posted on social media.
Palestinian President Mahmoud Abbas expressed his support, while Hamas—which governs the Gaza Strip—also welcomed the proposal, stating that it appreciated Arab nations’ rejection of any forced displacement of Palestinians.
United Nations Secretary-General Guterres reaffirmed the UN’s support, stressing that Gaza must remain part of a future Palestinian state. Meanwhile, European Council President Antonio Costa praised the plan as offering hope for millions of Palestinians after years of suffering.
U.S. and Israeli Stances
The White House cautiously welcomed collaboration with Arab nations but made clear that Hamas cannot continue ruling Gaza under any new framework.
Israel, however, outright rejected the Arab initiative, continuing its backing of Trump’s Gaza redevelopment proposal, which had sparked outrage across the Arab world.
Despite this, Sissi expressed confidence in Trump’s ability to broker peace, stating: “I look forward to working with our Arab brothers, President Trump and the international community to adopt a plan that aims for a comprehensive and just settlement of the Palestinian Issue.”
