Arab Leaders Endorse $53bn Rebuilding Plan for Gaza as Regional Alternative to Displacement Plan

Arab nations have collectively endorsed a £42bn ($53bn) reconstruction initiative focused on rebuilding Gaza under the future administration of the Palestinian Authority (PA). This ambitious plan was unveiled during an Arab League summit in Cairo and is seen as a strategic alternative to controversial proposals previously floated by Donald Trump.

The project, which emphasises emergency relief, revitalised infrastructure, and long-term economic development, featured commitments to support Palestinians remaining in their homeland. Egyptian President Abdel Fattah al-Sisi, speaking at the summit, elaborated on the initiative’s potential to provide stability, stating that Palestinians should not be displaced from their territory. The plan, endorsed by the UN Secretary-General António Guterres, was described as a comprehensive Arab framework for Gaza’s recovery, with an emphasis on unity and political progress towards Palestinian statehood.

Among the proposed developments are state-of-the-art residential areas, a commercial harbour, technology hubs, beach hotels, and an airport. These plans were showcased in a detailed 112-page document, complete with AI-generated images of what a reconstructed Gaza could look like. However, critics have pointed out that the Egyptian proposal stops short of addressing who would govern Gaza, with current governance split between Hamas and the PA.

Israel’s government has voiced concerns about the plan, dismissing it as unrealistic and failing to consider the complexities of the aftermath of Hamas’ recent attacks on Israeli citizens. While the PA remains the focus of the rebuilding effort, its influence in Gaza is limited, and Israel has shown no interest in cooperating with such initiatives. Prime Minister Benjamin Netanyahu has expressed a desire for expanded control over Palestinian territories, casting further doubt on prospects for international coordination.

Hamas, which currently governs Gaza, has also expressed scepticism over the plan’s feasibility, calling for measures to ensure it does not undermine Palestinian rights. Senior Hamas representatives rejected any attempts to impose projects that bypass their authority. In an official statement, the group voiced hope that Arab efforts would bolster their ability to govern independently and resist external intervention.

The Cairo summit’s final communique emphasised the need for Palestinian representation to be unified under the PLO, a political body that excludes Hamas. The plan urges international stakeholders to provide critical support to Gaza’s rebuilding process while avoiding policies that could lead to destabilisation or displacement of its population. The role of the UN in facilitating this process, alongside Arab nation support, remains key to advancing peace and reconstruction efforts.

While this Arab-led initiative stands in stark contrast to Trump’s prior proposals—which had included relocating Gaza’s population—its success hinges on widespread regional cooperation. Proponents hope this plan will gain traction despite resistance from opposing factions. Time will determine whether such a vision for Gaza’s recovery can materialise amid ongoing political and territorial disputes.