Netanyahu, Katz said to quietly okay reconstruction in IDF-controlled part of Gaza

Army Radio says premier approved rebuilding effort two weeks ago without telling public, despite Hamas remaining armed; PM’s office says it’s a UAE-backed temporary housing project

Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz have quietly given the go-ahead for rehabilitation work to begin in southern Gaza, despite vowing that reconstruction of the badly damaged Strip would only take place once the Hamas terror group was disarmed, Army Radio reported Sunday.

The reconstruction work, which involves building infrastructure for the establishment of residential housing, is taking place in an area of eastern Rafah under Israel Defense Forces control, but near the Yellow Line that forms the frontier with Hamas.

According to the report, Netanyahu and Katz gave the green light two weeks ago, albeit without announcing the move, as the International Stabilization Force set to take control of parts of Gaza readied to deploy.

The report said that Gaza contractors and laborers will carry out the work after undergoing security checks.

In response, the Prime Minister’s Office said the work began months ago, as part of an Emirati-backed project for temporary housing “free of Hamas rule.”

“As of now, the area has been cleared of terror infrastructure and tunnels,” Netanyahu’s office told Army Radio.

A Palestinian man pulls an empty cart past a sprawling makeshift camp for displaced people in Deir al-Balah, central Gaza Strip, August 7, 2026. (AP Photo/Abdel Kareem Hana)

The PMO also said electric, sewer and water infrastructure work will not be performed by Gazans, and will be under IDF supervision.

In January, Netanyahu insisted that reconstruction in Gaza would be allowed only if Hamas first gave up its weapons, something it has refused to do thus far, though a recent US-proffered agreement, rejected by Israel, appeared to pave the way toward disarming the group.

“I am already hearing the statements that we will allow Gaza’s reconstruction before demilitarization,” he said at the time. “That will not happen.”

Responding to the report, Transportation Minister Miri Regev told the station that rebuilding work can begin in any area of Gaza not under Hamas control.

Israeli soldiers seen on the Israeli border with the Gaza Strip, August 5, 2026. (Tsafrir Abayov/Flash90)

“We want Gaza to recover,” she said.

MK Avigdor Liberman, who leads the hawkish opposition Yisrael Beytenu party, claimed in a post to X that “the reconstruction of Gaza is Netanyahu’s payment for his recent meeting with [US] President Trump, who really didn’t want to meet with him.”

“Instead of eliminating Hamas, which is still armed, getting stronger and recruiting tens of thousands of terrorists, the October 7 Massacre Government is rebuilding the Strip and hiding it from the citizens of Israel,” Liberman continued.

“This is the same ‘conception’ that brought us October 7,” he said, asserting that Israel’s security strategy had been premised on a mistake. “We have to be decisive.”