Arab States Reject Trump’s Gaza Plan, Adopt Egyptian Reconstruction Proposal

Arab leaders have embraced on March 4 an alternative reconstruction Plan for Gaza, proposed by Egypt, which aims to rebuild the war-torn region with a $53 billion investment.

This plan, discussed during a Summit in Cairo yesterday, would focus on stabilizing Gaza without displacing Palestinians, a direct counter to former U.S. President Donald Trump’s “Middle East Riviera” vision, which sought to relocate Palestinians from Gaza.
Egyptian President Abdel Fattah al-Sisi highlighted the proposal’s importance, stating it would allow for the creation of an administrative committee of independent Palestinian technocrats to oversee the region’s reconstruction while preparing for the eventual return of the Palestinian Authority (PA).

The plan has been met with mixed reactions. While Hamas has agreed to the proposal, stating it will not field candidates for the administrative committee but will have input in its development, Israel has strongly criticised it. Israeli officials argue that the reliance on the PA is problematic, while Hamas’s continued governance of Gaza remains a major obstacle for both Israel and the U.S. The PA, led by President Mahmoud Abbas, has also supported the Egyptian plan and expressed willingness to hold elections if the situation allows. However, Abbas’s legitimacy has been increasingly questioned, both internally and externally, with many Palestinians viewing his administration as corrupt and out of touch.

Reconstruction efforts will require significant financial backing, particularly from oil-rich Gulf states such as Saudi Arabia and the UAE. The reconstruction fund is expected to seek international financing, with the World Bank playing a key role in overseeing the process. However, divisions remain within the Arab states, with the UAE pushing for the disarmament of Hamas, while others favour a more gradual approach. Saudi Arabia has also called for international guarantees to maintain the ceasefire, reinforcing the PA’s role in Gaza. Despite these challenges, the Egyptian plan offers a potential path forward, aiming for peace and stability in a region long marred by conflict.

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