Arab leaders approve Egypt’s $53bn Gaza reconstruction plan

Sarhan Basem
Credit: Palestinian President Office/Handout via REUTERS

Cairo (Brussels Morning Newspaper) – Leaders from Arab nations adopted an Egyptian reconstruction plan for Gaza on March 04, 2025, that would be worth $53 billion and prevent displacing Palestinians from the enclave, contrary to U.S. President Donald Trump’s “Middle East Riviera” idea.

Trump’s strategy to displace Palestinians in a U.S. seizure of the enclave attracted global condemnation last month and repeated long-standing Palestinian suspicions of being permanently driven from their homes.

What does Egypt’s reconstruction plan for Gaza include?

As reported by Reuters, Egypt’s Reconstruction Plan for Gaza is a 112-page document that contains maps of how its territory would be re-developed and dozens of colourful AI-generated pictures of housing developments, parks and community centres. The project includes a commercial dock, a technology crossing, beach resorts and an airport.

Egyptian leader Sisi stated at the summit that he was confident Trump would be able to reach peace as the Gaza Strip has been left destroyed by Israel’s military assault.

He said Egypt had operated in cooperation with Palestinians on building an administrative committee of independent, experienced Palestinian technocrats entrusted with the governance of Gaza after the conclusion of the Israel-Gaza war.

The committee will take responsibility for the oversight of humanitarian assistance and driving the Strip’s affairs for a temporary period, in practice for the return of the Palestinian Authority (PA), he said.

Palestinian Prime Minister Mohammed Mustafa expressed the reconstruction fund would pursue international financing as well as management and likely be located in the World Bank.

In an address at the summit, Saudi Foreign Minister Prince Faisal bin Farhan expressed international guarantees were required that the current temporary truce would remain in place, and supported the PA’s part in governing the strip. Delegates of the UAE and Qatar did not express during open sessions of the summit.

How did Hamas and the PA respond to the proposal?

Egyptian President Abdel Fattah al-Sisi expressed the Egyptian proposal, welcomed in subsequent announcements by Hamas and rejected by Israel and the U.S., had been approved at a summit in Cairo.

Palestinian President Mahmoud Abbas stated he welcomed the Egyptian vision. He urged Trump to back such a plan that would not involve displacing Palestinian residents. Abbas also stated he was willing to hold presidential and parliamentary elections if occasions permitted. Hamas stated it welcomed the elections.

How did Israel and the US react to Egypt’s reconstruction plan?

The Israeli foreign ministry in a declaration called the plan “rooted in outdated perspectives” and abandoned the reliance on the PA while whining that Hamas was left in power by the project. 

The White House expressed the plan adopted by Arab states did not address Gaza’s reality and that Trump stood by his recommendation.

Washington voiced its disapproval.

“The current proposal does not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance,”

White House spokesman Brian Hughes stated when questioned whether Trump would support the Arab leaders’ plan.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Sarhan Basem is Brussels Morning's Senior Correspondent to the European Parliament. With a Bachelor's degree in English Literature, Sarhan brings a unique blend of linguistic finesse and analytical prowess to his reporting. Specializing in foreign affairs, human rights, civil liberties, and security issues, he delves deep into the intricacies of global politics to provide insightful commentary and in-depth coverage. Beyond the world of journalism, Sarhan is an avid traveler, exploring new cultures and cuisines, and enjoys unwinding with a good book or indulging in outdoor adventures whenever possible.
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