Egypt unveils $53 billion plan to rebuild Gaza as alternative to Trump`s proposal
The reconstruction plan places Gaza under Palestinian Authority control while sidelining Hamas, with security forces trained in Egypt and Jordan to maintain order.
Egypt has proposed a $53 billion plan to rebuild Gaza over five years, focusing on emergency relief, infrastructure restoration and long-term economic development, according to a draft document seen by Agence France-Presse (AFP).
Palestinian president Mahmud Abbas said on Tuesday, February 4, that the Palestinian Authority would reassume control over the Gaza Strip under the plan. Abbas said in his opening remarks at an Arab League summit in Cairo that his administration could assume "its duties in the Gaza Strip through its governmental institutions, and a working committee has been formed for this purpose." Under the post-war plan, the Palestinian Authority`s security apparatus would take "on its responsibilities after restructuring and unifying the cadres present in the Gaza Strip and training them in Egypt and Jordan."
Arab leaders met in Cairo on Tuesday in order to discuss a plan for Gaza`s reconstruction to counter a proposal floated by United States President Donald Trump to take over Gaza and turn it into the "Riviera of the Middle East."
In his opening remarks, Egyptian President Abdel Fattah al-Sisi said that his government`s plan for Gaza`s post-war reconstruction would ensure that a committee under the PA runs the territory. "Egypt, in cooperation with its brothers in Palestine, worked to form an administrative committee of independent Palestinian professionals and technocrats entrusted with managing the Gaza Strip based on the expertise of its members," Sisi said. Sisi added that the plan proposed by Egypt would ensure that "the Palestinian people remain on their land.
The draft plan, shared by a diplomatic source with AFP, outlines two phases: an early recovery phase and a reconstruction phase. The early recovery phase, expected to last six months and cost $3 billion, would focus on "removing mines and unexploded ordnance, clearing debris and providing temporary housing."
To address immediate shelter needs in that phase, Egypt proposes setting up seven designated sites within Gaza to house more than 1.5 million displaced people in temporary housing units, each accommodating an average of six people. The plan also includes initial repairs to 60,000 partially damaged homes to accommodate 360,000 people.
The reconstruction phase would take place in two stages over four and a half years. The first stage, running until 2027 with a budget of $20 billion, would focus on rebuilding essential infrastructure, including roads, utility networks and public service facilities. It also calls for constructing 200,000 permanent housing units for 1.6 million people and reclaiming 20,000 acres of land. The second stage, extending to 2030 at an estimated cost of $30 billion, aims to complete infrastructure projects, build another 200,000 housing units and establish industrial zones, a fishing port, a commercial seaport and an airport.
The plan proposes creating an internationally supervised trust fund to ensure efficient and sustainable funding, as well as transparency and oversight. Cairo will also host a high-level ministerial conference to bring together donor countries, international and regional financial institutions, the private sector and civil society groups to secure funding. Egyptian state-linked media Al-Qahera News reported that the Arab summit`s draft final communique welcomed the convening of the international conference in Cairo this month.
Who will run Gaza?
Under the Egyptian plan, Palestinian militant group Hamas would be sidelined and replaced in Gaza with a committee made up of independent technocrats and non-partisan figures. The committee, according to the draft, would be formed under the Palestinian Authority to manage the territory for a transitional period of six months. The PA would then fully resume control over the enclave.
The PA had previously governed Gaza before Hamas ousted it from the territory in 2007. After Hamas attacked Israel on October 7, 2023, Israel vowed to crush Hamas, and to ensure that it would have no part in ruling over Gaza.
According to the draft, Egypt and Jordan are training PA-affiliated security forces to take on law enforcement in Gaza. The plan also calls for international and regional support to help fund this effort.
The plan raises the prospect of an international presence in the Palestinian territories, including a possible UN Security Council resolution to deploy peacekeeping or protection forces in Gaza and the West Bank. This would be part of a broader "timeline leading to the establishment of a Palestinian state and the building of its capabilities."
The plan acknowledges the challenge posed by armed factions in Gaza, saying the issue could be resolved through a "credible political process" that restores Palestinian rights and offers a clear path forward.
The Arab summit`s draft final communique also calls for holding elections in all Palestinian territories within one year, provided that appropriate conditions are met, according to Egyptian state-linked media. On Tuesday, Palestinian president Mahmud Abbas said presidential and legislative elections for the PA could be held next year, around two decades since the last general vote.
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5 Key Facts About Egypt’s $53 Billion Plan to Rebuild Gaza
Egyptian Streets
Since 7 October 2023, Gaza has been at the center of one of the most devastating conflicts in recent history. Israeli bombardments have left the small strip of land in ruins – over 47,000 people killed, more than two million displaced, and whole neighborhoods reduced to rubble by Israel.
At the recent Extraordinary Arab Summit in Cairo, Egypt unveiled a bold new plan to reconstruct Gaza to counter earlier suggestions by US President Donald Trump that the US would “buy” and develop Gaza.
But this plan is not just about rebuilding houses – it is about reimagining the entire future of Gaza, from infrastructure and governance to who controls the territory and how it fits into the broader Israeli-Palestinian conflict.
Here are five key things you should know about Egypt’s Gaza plan.
1. It’s a $53 billion, five-year roadmap to rebuild Gaza from the ground up
The price tag is massive – USD 53 billion over five years – but so is the damage. Homes, schools, hospitals, roads, power grids – everything needs to be either rebuilt or replaced to accommodate the three million Palestinians living in Gaza.
The plan breaks down into three phases:
- Phase 1: Emergency recovery, clearing rubble, and building temporary housing.
- Phase 2: Major infrastructure projects – including ports, roads, and government buildings – along with tens of thousands of permanent homes.
- Phase 3: Economic development – think industrial zones, a new airport, and even a coastal Corniche to support tourism.
The goal? To not just rebuild what was lost, but to create a modern, livable, self-sustaining Gaza.
2. Gaza would be redeveloped as a “smart, green city”
This is not just about patching things up. Egypt’s plan would turn Gaza into a smart, green city, powered by renewable energy and modern technology.
The plan envisions five specialized zones across Gaza, each with a distinct purpose:
- Rafah: Logistics hub.
- Khan Younis: Science and knowledge center.
- Deir Al-Balah: Peace and community hub.
- Gaza City: Government headquarters.
- Northern Gaza: Cultural and heritage zone.
Residential areas would range from low-density villas to high-rise urban clusters, all linked by a central green axis featuring parks, walking paths, and cycling routes.
The big picture: Egypt wants Gaza to be economically independent, environmentally sustainable, and politically stable.
3. Egypt’s plan rejects forced displacement – keeping Palestinians in Gaza is non-negotiable
One of the core principles of Egypt’s proposal is keeping Gaza’s residents on their land. This is a direct response to fears that Israel – with backing from some in the US – would try to push Palestinians out of Gaza permanently.
At the summit, Egypt’s President Abdel Fattah Al-Sisi made it clear:
Cairo cannot and will not participate in the displacement of Palestinians.
The reconstruction plan is designed to make Gaza livable again, so Palestinians can stay home instead of fleeing.
This principle isn’t just humanitarian – it’s political. Forced displacement would violate international law and undermine any hope for a future two-state solution.
4. It’s not just about buildings – it’s about who governs Gaza
Since 2007, Gaza has been controlled by Hamas, while the Palestinian Authority (PA), led by Mahmoud Abbas, governs parts of the West Bank. Egypt’s plan aims to end that split and put a unified Palestinian group back in charge of Gaza.
The process would start with a six-month transitional period, during which a technocratic Gaza Administration Committee would oversee reconstruction and basic governance.
Egypt and Jordan are also stepping in to help, training Palestinian police forces to restore order and prepare for full Palestinian control, which according to Mahmoud Abbas will be under the Palestinian Authority.
Why does this matter? International donors are more likely to fund reconstruction if they know Hamas isn’t in charge – and a unified Palestinian leadership is crucial for restarting peace talks.
5. There’s a global diplomatic push to fund – and protect – the plan
USD 53 billion is a lot of money, and Egypt knows it cannot fund the plan alone. That is why Cairo is hosting an international conference next month to rally donor countries, development banks, and private investors.
The funding plan also includes:
- A UN-supervised trust fund to ensure transparency.
- Contributions from international financial institutions.
- Investment incentives for private companies willing to bet on Gaza’s future.
But it’s not just about money — political backing matters too. Egypt, the UN, and even the European Union have all emphasized that Gaza’s reconstruction must happen within a clear political framework – one that guarantees a future Palestinian state, an end to the Israeli occupation, and a commitment to the two-state solution.
Without that, rebuilding Gaza could just end up being a band-aid at risk of being ripped off.
Bottom line
Egypt’s Gaza plan is ambitious but it is also the most detailed and concrete roadmap anyone has proposed since the war began and has received the endorsement of Arab leaders. Whether it can actually be implemented depends on global funding, political will, and whether Palestinian leadership can unite after nearly two decades of division.
For now, Egypt has made one thing clear: rebuilding Gaza is about more than bricks and mortar; it is about giving Palestinians a future – and keeping that future on Palestinian land, not somewhere else.
Photo in front page: Palestinian Authority President Mahmud Abbas (L) meeting with Egypt`s President Abdel Fattah al-Sisi during the Arab League Summit on Gaza, in Cairo, on 4 March 2025. Source: Palestinian Authority`s press office (PPO) / AFP. Photo on this page: Family photo of the emergency Arab summit to discuss Palestinian developments, at Egypt`s New Administrative Capital in Cairo, 4 March 2025. Source: Egyptian Presidency via Reuters.
