Egypt’s Gaza reconstruction plan endorsed by Arab League, rejected by Israel: What to know

The final communique of Tuesday’s emergency Arab League summit, which appeared in Daily News Egypt, emphasised the group’s commitment to a two-state solution for Israel and Palestine. The statement also emphasised the rights of Palestinian people and ruled out any possibility of displacing the population, as proposed by US President Donald Trump in his contentious “Riviera of the Middle East” plan.

The plan will now be presented to Trump, following US Secretary of State Marco Rubio’s comment in February offering the Arab countries “an opportunity” to “develop a plan” that rivalled Trump’s proposal. Here is what to know.

First, what had Trump proposed?

Last month, Trump, in a joint press conference with Israeli PM Benjamin Netanyahu, proposed that the US take over the Gaza strip and “own it”, clearing the area of unexploded bombs and rubble. In the process, the US would build glass towers and sea-facing property in what would become the “Riviera of the Middle East”, inviting the “world’s people” to move in.

Trump also asserted the idea of relocating nearly 2 million Palestinians from Gaza to neighbouring Jordan and Egypt, a proposal that both countries and other Arab nations vehemently rejected.

This proposal marked a significant break from the US’s long-standing endorsement of the two-state solution, besides violating multiple international laws.

What Egypt’s reconstruction plan for Gaza says

Egypt’s Reconstruction Plan for Gaza, a 112-page document, contains maps detailing how its land would be redeveloped.

The first phase, a recovery stage, is expected to last six months and cost $2 billion, according to an AFP report. It would focus on clearing over 50 million tons of rubble, removing mines and unexploded bomb material, and providing temporary housing. Egypt has reportedly proposed seven designated sites for temporary housing shelters to accommodate over 1.5 million displaced people. Each housing unit would be able to accommodate six people on average.

The following reconstruction phase would be completed in two stages over four and a half years. AFP reported that the first stage would run until 2027 on an estimated $20 billion budget and would focus on rebuilding essential infrastructure like roads and public utilities. It also targets the construction of 200,000 permanent housing units for 1.6 million people and the reclamation of 20,000 acres of land.

The second stage would run until 2030 on an estimated $30 billion budget, and would build 200,000 housing units. It also contains plans for a commercial seaport, a technology hub, industrial zones, beach hotels and an airport.

What the plan does not say…

…Is who will run Gaza, and which countries will provide the money needed for its reconstruction. The reconstruction would need investment from oil-rich Gulf nations like the UAE and Saudi Arabia, which could supply billions of dollars.

Egypt’s plan proposes to replace the Hamas-led Gaza government with a Governance Assistance Mission for an unspecified interim period. The mission would be led by professional Palestinian technocrats and oversee the dispensation of humanitarian aid and the reconstruction process.

Also under scrutiny is the role of Hamas going forward, given that the group has controlled Gaza since 2007. In a statement, it said it agreed to the committee proposal, and will abstain from elections to the committee. It also said it would consent to the tasks, members and agenda of the committee.

The plan also envisages a stronger role for the Palestinian Authority, Palestine’s governing body led by President Mahmoud Abbas, who has been in power since 2005. He stated his readiness to hold presidential and parliamentary elections under the right circumstances. The PA had controlled Gaza until Hamas took over in 2007, while its control of the occupied West Bank has shrunk with expanding Israeli settlement in the region.

And what Israel proposes instead…

In a statement, the Israeli foreign ministry called the plan “rooted in outdated perspectives” and complained that it did not acknowledge the October 7, 2023 attack by Hamas or condemn the militant group.

According to Israeli estimates, Hamas’s October 7 attack reportedly killed 1,200 and had over 250 people taken as hostages. Israel’s retaliatory military onslaught has killed over 48,000 Palestinians, according to the local health ministry, and displaced Gaza’s population almost entirely.

An Israeli official who spoke to Reuters said that the war aimed to destroy Hamas’s military and governing and military capabilities, and pushed for the group to be demilitarised immediately.

According to an AP report, Israel has backed what it calls the “Witkoff proposal”, supposedly drawn from comments made by Steve Witkoff, the US Special Envoy to the Middle East. The proposal is an alternative to the ceasefire itself and the release of Israeli hostages. The new plan calls for Hamas to release half its remaining hostages for an extension of the ceasefire and the promise of a lasting truce. In turn, Israel has not mentioned releasing any Palestinian prisoners, which it had in the first phase.

To pressure Hamas’s approval, Israel blocked the entry of humanitarian aid to Gaza on Sunday, and warned of consequences.

(With inputs from agencies)