Arab countries approve Egyptian five-year, $50 billion plan to rebuild Gaza

CairoThe Arab world expressed its support for a reconstruction plan for Gaza that excludes Hamas and that Egypt has been preparing in recent weeks, during a summit in Cairo, to articulate a joint alternative to the US President Donald Trump's proposal to take control of the Strip after expelling the population. However, the Egyptian proposal leaves several key issues regarding the future governance of the territory unresolved, and its viability is called into question by the current lack of support from Tel Aviv and Washington.

Egypt fears that a forced displacement of the Gaza population into its territory would jeopardize the country's stability and the future of the Palestinian cause in the Strip. Since Trump announced his plan in early February, Cairo has taken the initiative to draw up a counterproposal that would have the support of the entire region and that could appeal to the White House.

As for the reconstruction of Gaza, Egypt's plan is divided into three stages, according to details that have been leaked to local media. During the first phase, which should last about six months, areas within the Strip would be created to accommodate its population and thus facilitate the removal of all the rubble left by Israel's military offensive. There would then be two other stages, which in total would add up to five years, dedicated to the actual reconstruction of the territory.

Egypt's proposal also addresses the future governance of Gaza, which is a more thorny issue. The Egyptian plan proposes the formation of an independent, technocratic committee to manage the Strip for the duration of the reconstruction process. In addition, the Egyptian pro-government television channel Al Qahera News reported on Tuesday that an international peacekeeping force is also being considered for the enclave.

Egyptian President Abdel Fattah al-Sisi said during his opening speech at the summit that the plan drawn up by his country was conceived from the rejection of the two options that the United States and Israel are currently putting on the table for Gaza: a "forced displacement" or an "annihilation", respectively. Along these lines, the Egyptian leader stressed that Cairo's proposal aims to preserve "the right of the Palestinian people to rebuild their homeland" by remaining "on their land."

Where will the money come from?

Egypt's proposal, however, leaves several key aspects of its viability up in the air. One of the main questions it raises is how and who will finance the costly reconstruction of Gaza. A study published in February by the UN estimated that the reconstruction of the Strip and the West Bank requires some 50 billion euros over ten years. Most of the funds should be used to repair the territory's physical infrastructure, devastated by Israel.

Another possible obstacle to the future implementation of the Egyptian plan is control of Gaza. In this regard, the Arab countries of the Gulf are expected to bear the majority of the total cost of the reconstruction of the Strip. But with the exception of Qatar and Kuwait, the rest demand guarantees that Hamas will not remain in power, because they fear that, if this were the case, a new Israeli offensive in a few years would once again devastate the enclave and turn the investment into rubble.

During the summit in Cairo, Sisi said that after the initial period, during which the independent committee would take over the management of Gaza, the Palestinian Authority, based in the West Bank, would be the entity that would assume the government of the Strip. Palestinian President Mahmoud Abbas also said that they are committed to reforming the institution, which also raises some doubts in various Arab capitals due to its dysfunctionality and corruption.

Hamas, for its part, welcomed Egypt's plan and accepted the committee proposed by Cairo to manage Gaza during the reconstruction period. But the group has previously warned that it will not completely give up either its political activity or its defense of the armed struggle against Israeli occupation. In a statement released at the end of the Cairo summit, in which it did not participate, Hamas called for elections to be held in Palestine as soon as possible.

On the other hand, Egypt's plan does not have the support of either the United States or Israel for now, and on Sunday Israeli Prime Minister Benjamin Netanyahu again repeated in a recording that "fully supports" Trump's "visionary plan". Moreover, the announcement of Cairo's proposal came at a time of great uncertainty surrounding the future of the ceasefire between Israel and Hamas, after Tel Aviv refused last Saturday to move forward with the second phase of the agreement – which paves the way for an end to the war – as had been agreed.