Arab nations convened in Cairo on Tuesday to explore alternatives to President Donald Trump’s Gaza plan, specifically Egypt’s proposed $53 billion reconstruction initiative.
Prior to Trump’s proposal to relocate Gazans, regional interest in Gaza’s rebuilding was minimal. However, with concerns about accepting displaced Palestinians for “national security” reasons, Egypt is now driven to create its own strategy.
The $53 billion plan aims to offer an alternative to , with details already circulating in Arab media. Egypt suggests a six-month temporary committee to govern Gaza, but Palestinians insist on a solely Palestinian governing body and reject foreign forces. The plan is estimated to take four and a half years.
The Egyptian plan includes a two-year, $20 billion first phase and a two-and-a-half-year, $30 billion second phase, primarily focused on rebuilding conflict-damaged residential areas.
Unlike Trump’s proposal, this plan avoids displacing Gazan residents and emphasizes Palestinian-led reconstruction. The would collaborate with Egypt and Jordan to train a Gaza police force. However, Hamas has already rejected the plan, and the Palestinian Authority will not participate in reconstruction while Hamas remains in control.
“The Saudis will fund Gaza if there’s a path to a Palestinian state and Hamas is gone,” Ghaith Al-Omari, senior fellow at the Washington Institute and former executive director of the American Task Force on Palestine told Digital, “Saudi Arabia, the UAE, and Qatar want something from the Israelis in return, whether it’s an end to the war or security agreements. They’ll insist on a role for the Palestinian Authority, even if symbolic, for diplomatic reasons. The question is whether the current can meet these demands.”
THE HISTORY OF GAZA AMID TRUMP’S PLAN TO REBUILD ENCLAVE
“A militarized Hamas cannot remain in Gaza – the strip must be demilitarized, and Hamas must no longer be in control. The Emiratis are even more extreme on this issue,” Danny Zaken, a senior commentator for Israel Hayom newspaper, told Digital, “The final draft of the Egyptian plan will avoid directly addressing Hamas. Instead of stating that Hamas will be removed and disarmed, it will say that ‘qualified Palestinian security forces will maintain order with Egyptian backing.’ This approach aims for unanimous approval without addressing Hamas’ fate, but the reality is that it has no practical validity, because in that case the plan has no financial backing,” he explained.
Al-Omari noted, “Arab League summits tend to be a lot of posturing. Who’s going to take care of security? The PA can’t handle that – they’re too weak. No Arab country wants to send troops to Gaza, but they’re also under pressure from the U.S. to contribute.”
According to an Egyptian diplomatic source speaking to Digital, Egyptian construction companies are ready to start rebuilding, but the primary obstacle is political. “Egyptian construction companies are very capable, and they can rebuild Gaza in three years – if there is political will, mainly from Israel and the U.S.,” the source said.
While Egypt is eager to oversee the reconstruction, this ambition has caused tension with Gulf states expected to provide the funding. Zaken noted, “The Saudis are concerned because the Egyptians want to control the entire process: Who gets the money, who oversees the reconstruction, who the contractors are for demolition and rebuilding? And even new housing and hotels. The other partners worry about corruption in the process.”
A former U.S. foreign service official cautioned Digital about Egypt’s capacity to manage such significant funds. “The Gulf, which is expected to pay for it, is sick and tired of Egyptian corruption. If they fund the reconstruction, they will demand major oversight to ensure the money doesn’t get lost in Egypt’s power structure,” the source said.
Jordan has played a significant diplomatic role while avoiding direct involvement in the reconstruction discussions. Following King Abdullah’s meeting with Trump, Jordanian officials believed the pressure had shifted to Egypt and other Arab nations. “The Jordanians were very happy with the outcome of the meeting with Trump. They feel that the pressure to accept [a] million Gazans is off them,” Al-Omari said.
The broader political future of Gaza remains uncertain. Al-Omari stated that Arab leaders are primarily focused on navigating regarding Gaza, despite ongoing reconstruction talks. “Frankly, the main thinking in Arab governments right now is how to engage in a covert process with Trump to walk him back from this. No one expects immediate results, but they do hope that this will move Trump away from the idea of depopulating Gaza,” he said.
For now, all eyes are on the summit. However, as one former diplomatic source put it, “There’s no real plan yet – just ideas. Everyone is trying to shape it in their favor, but until Hamas’ fate is resolved, we’re all just talking in circles.”
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