Egypt’s $53 Billion Gaza Reconstruction Plan Gains Global Backing

Arab leaders, the United Nations, and the European Union have endorsed Egypt’s ambitious $53 billion plan to rebuild the Gaza Strip, offering a humane alternative to former U.S. President Donald Trump’s controversial proposal to depopulate the territory.

The Egyptian initiative, presented at an Arab League summit in Cairo on March 4, aims to restore Gaza while ensuring its roughly 2 million Palestinian residents remain in their homeland.

Egyptian President Abdel Fattah el-Sissi outlined a five-year roadmap divided into three phases. The first six months will focus on clearing over 50 million tons of rubble and providing temporary housing for 1.2 million displaced residents at a cost of $3 billion.

The second phase, spanning two years, will involve building 200,000 permanent housing units and restoring essential infrastructure such as water systems, electricity, and telecommunications at an estimated $20 billion.

The final phase, lasting two-and-a-half years and costing $30 billion, will add another 200,000 housing units, develop industrial zones, and construct an airport and seaport.

The plan contrasts sharply with Trump’s vision of transforming Gaza into a tourism hub—dubbed the “Riviera of the Middle East”—which involved relocating Palestinians to neighboring countries like Egypt and Jordan.

Egypt’s Proposal for Gaza

Critics labeled Trump’s proposal as ethnic cleansing, and it faced widespread rejection from Arab nations and international organizations. El-Sissi emphasized that Egypt’s plan prioritizes keeping Palestinians on their land while addressing urgent humanitarian needs.

Governance under the Egyptian proposal will initially be managed by an independent Palestinian technocratic committee for six months before transitioning to the Palestinian Authority (PA).

While Hamas has expressed support for reconstruction efforts, it remains firmly opposed to disarmament—a condition Israel insists upon for peace negotiations. This unresolved issue could hinder progress.

Funding remains another challenge. Egypt plans to host an international donor conference next month to secure contributions from Gulf states like Saudi Arabia and the UAE, as well as global institutions.

Despite backing from the UN and EU, securing $53 billion will require significant international cooperation. El-Sissi expressed optimism about collaboration with Trump and other global actors but acknowledged the complexities of balancing regional interests.

As Gaza struggles with extensive destruction—70% of its structures damaged or destroyed—the Egyptian plan offers a path forward but faces significant political and financial hurdles.