The Arab League has approved Egypt’s proposal for post-war reconstruction in Gaza, a plan that has been categorically rejected by the United States as completely unrealistic.
The proposal, which spans 111 pages, outlines ambitious redevelopment efforts but has been widely criticised as impractical and lacking a clear mechanism for implementation.
The Egyptian Proposal
Egypt’s plan envisions a transformed Gaza with modern residential complexes, an airport, and a seaport. The document contains extensive visual representations of a rebuilt Gaza, many of which are reportedly generated using artificial intelligence.
However, beneath these promising images, the plan implies that Hamas must be removed from power in Gaza as a prerequisite for its implementation. It does not specify how this would be achieved, nor does it outline what role, if any, Hamas would play in a post-war scenario. Instead, it vaguely refers to militant groups as an “obstacle” and suggests that this issue would be resolved by addressing the underlying causes of the conflict with Israel.
The transition period outlined in the proposal suggests that a governing committee would take over administration in Gaza for six months, after which control would be handed to the Palestinian Authority. The document does not address Hamas’s stance on this, though the militant group has already made it clear that it has no intention of relinquishing control.
A key detail of the proposal is its estimated cost—set at $53 billion. Observers have noted that the figure appears arbitrarily set, with comparisons being drawn to previous reconstruction proposals, such as one put forward by Turkish President Recep Tayyip Erdoğan, which placed the cost at $100 billion and suggested that Israel should cover the expenses.
Reactions to the Plan
The United States dismissed the plan outright, arguing that it does not address the fundamental challenges in Gaza, including the presence of unexploded ordnance, widespread destruction, and the continued control of Hamas. Washington has signalled that any reconstruction efforts would need to be accompanied by broader security arrangements and governance reforms.
Israel has also rejected the proposal, citing its reliance on the Palestinian Authority and the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), both of which Israeli officials accuse of corruption and mismanagement.
Israel has insisted that any future governance arrangement in Gaza must exclude Hamas and ensure demilitarisation, neither of which the Egyptian plan sufficiently guarantees.
Arab states have given mixed reactions. While the Arab League has formally endorsed the plan, key Gulf nations such as the United Arab Emirates have reportedly refused to commit funding unless Hamas is entirely removed from Gaza. Saudi Arabia and other regional powers have remained cautious, wary of investing in a project that could ultimately fail due to political instability.
Funding Uncertainty
A crucial question remains: who would finance the $53 billion reconstruction effort? The Egyptian plan vaguely suggests that “wealthy Arab states and Western countries” should bear the financial burden. However, the European Union and the United States are increasingly reluctant to fund projects that lack clear accountability, particularly in a region where past reconstruction efforts have been undermined by corruption and misallocation of funds.
The reluctance of Arab states to contribute under current conditions further complicates matters. The UAE and other Gulf nations have made it clear that they will not finance Gaza’s reconstruction while Hamas remains in power. This leaves Egypt in a difficult position, as Cairo has historically maintained a complex relationship with Hamas while also relying on financial support from Gulf states.
The Future of Gaza’s Reconstruction
Given the lack of viable funding sources and the political obstacles surrounding Hamas’s continued presence, analysts believe the Egyptian proposal is unlikely to progress beyond its current stage. Without a clear governance framework, security guarantees, and committed financial backing, the plan is expected to be shelved in the coming months.
In the meantime, hostilities in Gaza remain a pressing concern. Efforts to extend the current ceasefire have made little progress, and renewed fighting appears increasingly likely. Israel has indicated that, should negotiations fail, military operations will resume with a focus on dismantling Hamas’s remaining infrastructure.
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