Arab leaders have endorsed Egypt’s $53 billion reconstruction plan for Gaza on Tuesday, offering a solution that avoids displacing Palestinians, a stark contrast to President Donald Trump’s “Middle East Riviera” vision for the region.
The White House responded, stating that the Arab proposal did not address Gaza’s reality, affirming Trump’s commitment to his own plan.
Trump’s vision of displacing Palestinians as part of a US takeover of Gaza sparked global criticism last month, aligning with long-held Palestinian concerns about being permanently displaced.
At a Cairo summit, Egyptian President Abdel Fattah al-Sisi confirmed that the Arab states had accepted Egypt’s alternative plan, which was supported by Hamas but criticized by Israel and the US.
Sisi emphasized Egypt’s cooperation with Palestinians in creating an administrative committee to oversee Gaza temporarily until the Palestinian Authority (PA) could take control.
The fate of Hamas, the militant group that has controlled Gaza since 2007, remains a critical issue. The PA’s rival faction, Hamas, agreed to the proposal but will have a say in its tasks, members, and agenda.
Palestinian President Mahmoud Abbas also welcomed the Egyptian plan, urging Trump to support it. Abbas expressed willingness to hold elections if conditions allowed, acknowledging that his administration’s legitimacy had eroded due to Israel’s continued settlement building.
Israel dismissed the Egyptian proposal, calling it outdated and insisting that Hamas must not remain in power. Similarly, the US expressed concerns about Gaza’s current uninhabitable condition.
The plan will require substantial funding, and Gulf Arab states like the UAE and Saudi Arabia are seen as essential contributors. Both countries have differing views on Hamas’s role, with the UAE pushing for its immediate disarmament, while Saudi Arabia and others support a gradual approach.
Hamas rejected calls to disarm, insisting on its right to resist, and firmly opposed any non-Palestinian administration or foreign forces on Gaza’s soil.
Egypt, Jordan, and Gulf Arab states have been working for weeks on an alternative to Trump’s plan, aiming to prevent regional instability that could result from mass displacement. The final version of Egypt’s reconstruction plan envisions extensive development in Gaza, including housing, commercial areas, and infrastructure like a harbor and airport.
Israel is likely to approve an Arab-led governance model for Gaza if Hamas is removed, but insists on immediate demilitarization. The ongoing war has severely reduced Hamas’s military capabilities, according to Israeli officials.
