The Dialectics

Magazine In Brief (Mar 25)

Gaza Reconstruction Plan: Egypt’s $53 Billion Plan for Recovery and Peace

Arab nations have committed themselves to backing Egypt’s Gaza rebuilding initiative, providing a possible way out following Israel’s ruinous war against the Palestinian enclave. The initiative was launched at an Arab League Summit in Cairo and seeks to rebuild Gaza without displacing its Palestinian people, dismissing the contentious U.S. President Donald Trump’s proposal to vacate the region.

The strategy is laid out in three key phases for a five-year duration at a cost of approximately $53 billion. The immediate goals are rebuilding infrastructure, providing security, and reviving control of the PA in Gaza.

The first phase, lasting six months with a budget of $3 billion, will be managed by a committee of Palestinian technocrats under the PA. It focuses on clearing rubble, especially from Salah al-Din Street, Gaza’s main highway. Additionally, 200,000 temporary homes will be constructed to shelter 1.2 million people and 60,000 damaged buildings will be restored.

The second phase, spanning two years and costing $20 billion, will continue construction efforts. This phase sees 400,000 permanent residences constructed and the main services of water, waste, electricity, and telecommunications restored. It also seeks to develop an industrial area, a fishing port, a commercial port, and an airport to improve Gaza’s economic outlook.

The final phase, expected to take 2.5 years with a budget of $30 billion, will focus on governance and humanitarian aid. A technocratic committee will oversee governance, while a Steering and Management Council will finance the reconstruction process. There is also a possibility of Palestinian elections next year if conditions allow. Security measures include the training of Palestinian police by Egypt and Jordan, with potential involvement of a UN peacekeeping mission.

The Egyptian plan seeks to replace Hamas with independent Palestinian technocrats to administer Gaza, paving the way for the PA’s return. However, Hamas has welcomed the reconstruction efforts while opposing disarmament, a key Israeli demand. Meanwhile, Israeli Prime Minister Benjamin Netanyahu has rejected the PA’s return to Gaza, further complicating the situation.

The $53 billion budget for the plan will be funded through international sources such as the UN, banks, and private donors. Conferences will be used to raise money for Gaza reconstruction and long-term development. Despite this, there are challenges because Hamas, Israel, and America have not come to an accord on the conditions of the plan. Hamas agrees to a technocratic government but will not disarm. Israel is against Hamas staying on and refuses the return of the PA. The Trump administration still supports its proposal to displace Gaza’s population and transform the area into a U.S.-controlled economic hub.

Egypt has strongly condemned Israel’s continued support for the displacement plan, calling it “unacceptable.” Egyptian Foreign Minister Badr Abdelatty criticized Israel’s stance as “extremist” and emphasized that lasting peace is impossible without an independent Palestinian state. The U.S., while backing Trump’s vision, has indicated openness to regional collaboration, provided Hamas is excluded. White House National Security Council spokesman Brian Hughes stated that “President Trump welcomes input from our Arab partners” but reiterated that Hamas “cannot continue to govern Gaza.”

While Egypt’s plan offers a structured and financially backed path for Gaza’s reconstruction, its success hinges on whether all key players—Hamas, Israel, the PA, and international powers—agree to its terms. The coming months will be crucial in determining if this plan can pave the way for stability and long-term peace in Gaza.

Author

  • Anmol Kumar

    Anmol Kumar currently works as an Assistant Editor at Defence and Security Alert (DSA) Magazine. He holds a Bachelors in Persian language from Jawaharlal Nehru University and Masters in International Relations from Pondicherry University. He is well known for his research and analyses on topics like defence strategy, geopolitics, West Asia and anything that falls under the purview of international relations.

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