Arab leaders endorse Egypt's €50bn plan to rebuild Gaza, countering Trump's proposal

Arab leaders on Tuesday approved Egypt's postwar plan for the Gaza Strip, countering the Trump plan to depopulate the territory and redevelop it as a beach destination.

The $53 billion (€49.6bn) plan, endorsed by Arab leaders at a summit in Cairo, would allow Gaza's roughly 2 million Palestinians to remain in the Strip.

"We welcome any proposals or ideas from the international community to ensure the success of this plan, which needs to be implemented side by side with a greater plan for peace," Egyptian President Abdel Fattah el-Sissi stated in a social media post after the meeting.

The proposed project "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," el-Sisi added, expressing his eagerness to collaborate with the US, other Arab countries, and the international community at large.

Egypt's postwar Gaza proposal

Egypt’s plan, also dubbed the Arab Plan, foresees rebuilding Gaza by 2030 without removing its population.

The first phase would involve clearing more than 50 million tonnes of debris left by Israel's military offensives and shelling, as well as beginning the cleanup of unexploded ordnance.

The plan envisages completely reshaping the Strip and building “sustainable, green, and walkable” housing and urban areas with renewable energy in the following years. It would also renovate agricultural lands and create industrial zones and large park areas.

The scheme also calls for the opening of an airport, a fishing port, and a commercial port. The Oslo Peace Accords in the 1990s already envisaged an airport and a commercial port in Gaza, but the projects withered as the peace process collapsed.

Hamas welcomes plan, Israel rejects it

Hamas, which controls the Gaza Strip, has welcomed the proposal, saying it valued Arab leaders’ rejection of attempts to transfer Palestinians from their lands.

However, the scheme was rejected by Israeli authorities.

Oren Marmorstein, spokesperson for Israel's foreign ministry, said in a post on X that the Egyptian plan “fails to address the realities of the situation" and said the summit's joint communiqué does not mention or condemn the militant group and its 7 October 2023 attack that sparked the war.

Marmorstein instead reaffirmed Israel’s support for Trump's plan to resettle Gaza's population elsewhere, describing it as “an opportunity for the Gazans to have free choice based on their free will."

White House reacts

Meanwhile, the White House in its initial reaction said it welcomed input from Arab nations but insisted Hamas could not remain in power in the territory.

“While the president stands by his bold vision for a post-war Gaza, he welcomes input from our Arab partners in the region. It’s clear his proposals have driven the region to come to the table rather than allow this issue to devolve into further crisis,” White House National Security Council spokesperson Brian Hughes said.

In the Arab-approved plan, Hamas would cede power to an interim administration of political independents until a reformed Palestinian Authority can assume control.

However, Hughes said, “President Trump has been clear that Hamas cannot continue to govern Gaza."

Arab League chief Ahmed Aboul Gheit said the summit’s final communiqué calls on the UN Security Council to deploy an international peacekeeping force in Gaza and the occupied West Bank.

“Peace is the Arabs’ strategic option,” he told a news conference, adding that the communique rejected the transfer of Palestinians and endorsed Egypt’s reconstruction plan. “The Egyptian plan creates a path for a new security and political context in Gaza.”

According to AP, a 112-page draft of the plan states that hundreds of thousands of temporary housing units would be established for Gaza's residents during reconstruction.

On Gaza's Mediterranean shore, some of the recycled rubble would then be used as infill to increase the land area.

Last month, Trump startled the region by proposing that the approximately 2 million Palestinians living in Gaza be relocated to other nations.

According to Trump, the US would reclaim and turn the land into a "riviera" in the Middle East.

His plan was vehemently opposed by Palestinians, Arab nations and human rights experts who claimed it would probably be against international law.

However, it has been endorsed by Israeli Prime Minister Benjamin Netanyahu.