Egypt’s alternative to Trump’s “Gaza Riviera” plan is expected to cost $53 billion and take five years. Cairo says it will host a conference for Gaza reconstruction next month.

Leaders at an extraordinary meeting of the Arab League in Cairo have endorsed an Egyptian plan for the reconstruction of the war-ravaged Gaza Strip.

 “It has been endorsed,” said Egyptian President Abdel Fattah el-Sissi told the closing session of the summit, at which he had presented a five-year plan to rebuild Gaza that will cost $53 billion (€50.5 billion), according to draft documents, and allow Palestinians to “remain on their land.”

“There will be no real peace without establishing a Palestinian state,” he had said earlier, opening the summit. “Peace will not come by force and cannot be forced.”

But in order for the ceasefire to proceed to the next phase, Israel has demanded Hamas’ disarmament, a move the Islamist group has called a “red line.”

The Israeli Foreign Ministry said on Tuesday that the discussions and endorsements in Cairo “failed to address the realities of the situation” following Hamas’ attack on Israel on October 7, 2023.

Washington welcomes inputs but says Hamas cannot remain in power in Gaza

Egyptian President Abdel Fattah el-Sissi said in a post after the summit that he welcomed any proposal and ideas from the international community and looked forward to working with US President Donald Trump.

The White House welcomed inputs from Arab nations, but insisted Hamas could not remain in power in Gaza, US National Security Council spokesman Brian Hughes said.

“President Trump has been clear that Hamas cannot continue to govern Gaza,” Hughes said, adding: “While the President stands by his bold vision for a post-war Gaza, he welcomes input from our Arab partners in the region.” 

What we know so far about Egypt’s reconstruction plan

According to the 112-page draft document seen by the DPA and Reuters news agencies, an initial six-month recovery phase would focus on removing rubble and installing temporary housing at a cost of around $3 billion.

In a first phase proper, the plan calls for the building of 200,000 housing units in Gaza over the next two years. A second stage will see 200,000 more housing units.

By 2030, the plan foresees hundreds of thousands of new homes housing up to 3 million people as well as an airport, industrial zones, hotels and parks.

President Sissi said an “independent” Palestinian body would manage Gaza under the reconstruction plan, with Palestinian President Mahmoud Abbas saying his Palestinian Authority would be prepared to play a role.

UN, EU back Egyptian proposals

Sissi urged the international community to back the Egyptian reconstruction plan, and received support from both the United Nations and the European Union.

Speaking at the Cairo summit, UN Secretary General Antonio Guterres said he “strongly endorsed” the Arab-led initiative, adding: “The UN stands ready to fully cooperate in this endeavor.”

EU Council President Antonio Costa also welcomed the plans, saying they “give hope to millions of Palestinians in Gaza, the West Bank, and abroad” that “the terrible suffering we have all witnessed over the past year and a half” could end.

Bahrain’s King Hamad bin Isa Al-Khalifa also expressed support, telling the opening session: “We commend Egypt’s plan presented to the summit for the Gaza Strip and urge for this plan to be supported, which helps in strengthening our brotherly ties and protecting our national interests.”

Syria’s interim President Ahmed al-Sharaa also attended the summit, his first such meeting since ousting longtime ruler Bashar al-Assad nearly three months ago. Sharaa has called Trump’s proposals “a very huge crime that cannot happen.”

Reactions to Egyptian plan inside Gaza

Any reconstruction funding would necessitate heavy buy-in from oil-rich Gulf states such as the United Arab Emirates (UAE) and Saudi Arabia.

Neither country supports Hamas, the Islamist group currently ruling the strip.

Nevertheless, Hamas still welcomed the Egyptian proposal, saying in a statement: “We look forward to an effective Arab role that ends the humanitarian tragedy created by the occupation in the Gaza Strip … and thwarts the [Israeli] occupation’s plans to displace [Palestinians].”

While the full extent of the damage will only be known once inspectors have full access to the territory, the UN estimated using satellite data that nearly 70% of all structures in Gaza have been damaged or destroyed. This includes over 245,000 homes.

Another UN estimate says that the war has littered Gaza with over 50 million tons of rubble — roughly 12 times the size of the Great Pyramid of Giza.

What prompted the emergency Arab summit?

The plans discussed in Tuesday’s summit weremeant to counter US President Donald Trump’s controversial pledge to own Gaza and redevelop it after “resettling” some two million Palestinian people to Arab countries.

Trump had uploaded an AI-produced video showing war-torn Gaza turned into the “Riviera of the Middle East,” a plan lauded as “visionary and innovative” by Israeli President Benjamin Netanyahu and one that sparked outrage across the Middle East and other nations.

Nevertheless, Egyptian President Sissi insisted that President Trump could still achieve peace on what he referred to as the Palestinian issue.

“I am sure Trump is able to carry that out amid our true desire to put an end for the tensions and hostilities in our region,” he said.