Arab leaders endorse Egypt’s $53 billion Gaza reconstruction plan, countering Trump’s Riviera proposal

Middle East, News March 6, 2025 , by IRIA No Comments

6 minute read

At a key summit in Cairo, Arab leaders have adopted Egypt’s comprehensive $53 billion reconstruction plan for the Gaza Strip — a direct counterproposal to U.S. President Donald Trump’s controversial vision of turning Gaza into a “Middle East Riviera.”

The Egyptian plan, which emphasizes rebuilding Gaza without displacing its 2.3 million Palestinian residents, marks a significant departure from Trump’s idea of resettling Palestinians and redeveloping Gaza as a luxurious destination.

Egyptian President Abdel Fattah El-Sisi expressed his gratitude for “the consensus among the Arab countries to support the reconstruction plan for the Gaza Strip, which allows the Palestinian People to stay on their land without displacement.”

He added that Egypt looked forward to working with other Arab nations, as well as U.S. and the international community to adopt the plan that “aims for a comprehensive and just settlement of the Palestinian Issue, ends the root causes of the Israeli Palestinian conflict, guarantees the security and stability of the peoples of the region and establishes the Palestinian State.”

^{Palestinians sit next to a fire among the rubble of buildings destroyed during the Israeli offensive, amid a ceasefire between Israel and Hamas, at Jabalia refugee camp, northern Gaza Strip, February 17, 2025. (Image Credit: Reuters/Mahmoud Issa)}

The emergency summit, held in Cairo on March 4, 2025, was attended by the Emir of Qatar, the vice president of the UAE, the foreign minister of Saudi Arabia and United Nations Secretary-General Antonios Guterres. The summit also condemned Israel’s decision to halt the entry of aid into Gaza, called for an end to Israeli aggression in the West Bank and affirmed the critical role of UNRWA in Gaza and the West Bank.

Key Features of Egypt’s Gaza Reconstruction Plan

The Egyptian reconstruction initiative unfolds in three phases over approximately five years, with an estimated cost of $53 billion.

Phase 1 – The first phase will take six months and is estimated to cost $3 billion. This phase focuses on clearing debris from key infrastructure, including Salah al-Din Street—the main north-south highway in Gaza—and providing temporary housing for displaced Palestinians.

Phase 2 – The second phase will span two years and is allocated $20 billion to continue rubble removal, establish vital utility networks, and construct additional housing.

Phase 3 – The third and final phase, lasting two and a half years, will cost $30 billion and will focus on building permanent homes for Gaza’s residents, restoring the seaport, and constructing an international airport. The plan also includes establishing an industrial zone, commercial ports, and essential services like electricity, water, and telecommunications.

AI-generated image of future Gaza ccording to Egypt Gaza deveopment plan — An AI-generated image resembling a commercial building in Gaza,according to Egypt’s Gaza development plan. (Image Credit: Egyptian Presidency)

Key to the plan is its reliance on international financial support, including contributions from the UN, global financial organizations, and private sector investments. Egypt envisions the plan as a multi-stakeholder effort, designed to restore peace and stability to Gaza while asserting the governance of the Palestinian Authority (PA), which has been absent from Gaza for 17 years after internal conflict between Fatah and Hamas.

Palestinian Authority and Hamas welcome Egypt’s plan for Gaza

The Palestinian Authority (PA) has fully endorsed the Egyptian plan, with President Mahmoud Abbas reaffirming his support for a reconstruction effort that ensures Palestinians remain in Gaza. Abbas emphasized the importance of holding democratic elections next year ‘if conditions are favourable’. He reiterated the need for international pressure on Israel to cease its ongoing illegal military actions in Gaza, the West Bank, and East Jerusalem.

In response to Abbas’s proposal, the Egyptian President El-Sisi suggested forming a committee of Palestinian scholars to temporarily manage Gaza, paving the way for future Palestinian Authority elections.

Palestinian President Mahmoud Abbas meets Egyptian President Abdel Fattah El-Sisi — ^{Palestinian President Mahmoud Abbas (left) meets with Egyptian President Abdel Fattah El-Sisi on the sidelines of the Emergency Arab summit in Cairo, Egypt, on March 4, 2025. (Image Credit: Palestinian Presidency)}

Palestinian militant group Hamas, which has run the Palestinian enclave for almost two decades, cautiously welcomed the Egyptian initiative, but urged Arab states to work to ensure its success. The group urged Arab leaders to halt any Israeli attempts to forcibly displace Palestinians, which they view as an essential step toward securing Palestinian rights and dignity.

The Egyptian plan calls for a group of “independent Palestinian technocrats” to manage affairs in Gaza, in effect replacing Hamas. Currently, Palestinians live under a mix of authorities in the West Bank, Gaza, and refugee camps across the Middle East. The Palestinian Authority (PA) controls parts of the West Bank, while Hamas administers the Gaza Strip, with Israel exercising varying degrees of control over both territories.

Israel criticizes Cairo Arab summit and Egypt plan

Despite the plan’s endorsement by Arab states, it has faced staunch rejection from Israel and the United States.

Shortly after a summit of Arab leaders in Cairo, Israel rejected the Arab plan. Israel’s foreign ministry spokesperson Oren Marmorstein said that the Egyptian plan “fails to address the realities of the situation” and that the Egyptian initiative did not condemn Hamas nor mentioned Hamas’s involvement in the October 7, 2023, attack that sparked the war.

Egypt hosts emergency Arab summit to discuss Palestinian developments — *^{Arab leaders pose for a group photo during the emergency Arab summit at Egypt’s new administrative capital, just outside Cairo, on March 4, 2025. (Image Credit: Egyptian Presidency)}*

Israel, meanwhile, reiterated its support for U.S. President Donald Trump’s plan, which seeks to displace Palestinians and relocate them to Jordan and Egypt, stating that Arab states rejected it without considering its merits.

Egypt’s Foreign Minister Badr Abdelatty slammed Israel’s rejection as “unacceptable,” and said that “There will be no peace neither to Israel or to the region” without establishing an independent Palestinian state under UN resolutions.

US rejects the Arab plan

The U.S. also dismissed the Egyptian plan. U.S. National Security Council spokesperson Brian Hughes criticized it for being “unworkable” due to the current condition of Gaza, labeling the region as “uninhabitable” and unable to support its residents under such conditions.

Hughes stated, “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.” He emphasized that President Trump remains committed to his vision to “rebuild Gaza free from Hamas.” Hughes added that the U.S. administration looked forward to talks to bring peace and prosperity to the region.

International and Regional Implications

The Egyptian proposal has garnered significant international attention, with the UN expressing support. In a post-summit statement, El-Sisi emphasized Egypt’s commitment to collaborating with Trump and other international actors to seek a just resolution to the Palestinian issue.

However, with stark divisions between the U.S., Israel, and Arab states, Gaza’s reconstruction remains uncertain. The contrasting visions—Egypt’s plan focusing on redevelopment without displacing Palestinians, and the U.S. proposal aiming for displacement to transform Gaza into a tourist hotspot—underscore the deep geopolitical tensions shaping the region.