Arab plan for Gaza could involve up to $20 billion regional contribution
Officials hope financial support from Arab and Gulf states toward reconstruction of the war-torn enclave could bring Trump around to their alternative plan
Egypt’s President Abdel-Fattah el-Sissi is expected to travel to Riyadh on Thursday, two Egyptian security sources said, where he is due to discuss an Arab plan for Gaza that may include up to $20 billion from the region for reconstruction.
Arab states are expected to discuss a post-war plan for Gaza to counter US President Donald Trump’s recent proposal to redevelop the strip under US control and permanently displace Palestinians, a prospect that has angered regional leaders while being welcomed by Israel, although it has insisted that any relocation of Palestinians would be voluntary.
Saudi Arabia, Egypt, Jordan, the United Arab Emirates and Qatar are set to review and discuss the Arab plan before it is presented at a scheduled Arab summit that is slated to take place in Cairo on March 4, four sources with knowledge of the matter said.
On Friday, a gathering of Arab state leaders, including Jordan, Egypt, the UAE and Qatar, was expected in Saudi Arabia, which is spearheading Arab efforts against Trump’s plan, although some sources said the date had not been confirmed yet.
Arab states were dismayed by Trump’s plan to “clean out” Palestinians from Gaza and resettle most of them in Jordan and Egypt to create a “Riviera of the Middle East.” The idea was immediately rejected by Cairo and Amman and seen in most of the region as deeply destabilizing, with rights groups saying that it would amount to forced expulsion, a potential war crime.
The Arab proposal, mostly based on an Egyptian plan, involves forming a national Palestinian committee to govern Gaza without Hamas involvement and international participation in reconstruction without displacing Palestinians abroad. The committee would also not be aligned with the Palestinian Authority, according to Egyptian officials involved in the efforts.
A $20 billion contribution from Arab and Gulf states toward the fund, cited by two sources as being a likely figure, may be a good incentive for Trump to accept the plan, Emirati academic Abdulkhaleq Abdullah said.
“Trump is transactional so $20 billion would resonate well with him,” Abdullah said. “This would benefit a lot of US and Israeli companies.”
The PA’s cabinet said in a statement on Tuesday that the first phase of the plan under discussion would cost approximately $20 billion over three years.
The Palestinian Authority’s estimate was matched by an assessment released by the United Nations, European Union and World Bank on Tuesday, which estimated that more than $50 billion would be required to rebuild Gaza and areas of the West Bank.
The Interim Rapid Damage and Needs Assessment said that $53.2 billion is needed for recovery and reconstruction over the next ten years, with $20 billion needed in the first three.
Egyptian sources told Reuters that discussions are still underway as to the size of the financial contribution by the region.
The plan sees reconstruction taking place over a three-year timeframe, sources said.
“My conversations with Arab leaders, most recently King Abdullah [of Jordan], have convinced me they have a really realistic appraisal of what their role should be,” US Senator Richard Blumenthal told reporters in Tel Aviv during a visit to Israel on Monday.
Foreign Minister Gideon Sa’ar said Israel was waiting to evaluate the plan as it comes together but warned that any plan in which Hamas continued to have a presence in Gaza was not acceptable.
“When we hear it, we will know how to address it,” he said.
The 16 months of war in the Gaza Strip, sparked by the Hamas-led invasion and massacre in southern Israel on October 7, 2023, has devastated the Palestinian enclave.
Around a quarter million housing units have been destroyed or damaged, according to UN estimates. More than 90 percent of the roads and more than 80% of health facilities have been damaged or destroyed. Damage to infrastructure has been estimated at some $30 billion, along with an estimated $16 billion in damage to housing.
