Arab Leaders Approve $53 Billion Plan for Gaza Reconstruction Under Palestinian Authority

Arab leaders have endorsed a $53 billion (£42 billion) reconstruction plan for Gaza, placing future governance under the Palestinian Authority (PA) in an effort to counter a controversial proposal by former U.S. President Donald Trump.

Trump’s plan, which suggested relocating Palestinians, has been widely condemned as an endorsement of ethnic cleansing. However, the PA’s control over Gaza remains uncertain, as Israel has opposed any future role for the body. During his first term, Trump also shut down the Palestine Liberation Organization (PLO) liaison office in Washington while increasing support for Israel.

Israel’s foreign ministry dismissed the Arab-backed reconstruction proposal, stating that it failed to acknowledge the aftermath of Hamas’ October 7 attack. Meanwhile, Hamas welcomed the plan but called for assurances that it would be successfully implemented, describing the summit as a positive step in strengthening Arab and Islamic support for the Palestinian cause.

Cairo Summit Pushes for Rebuilding and Political Resolution

The plan, introduced at an Arab League summit in Cairo, prioritizes emergency relief, infrastructure restoration, and long-term economic growth. Egyptian President Abdel Fattah al-Sisi emphasized that his country’s initiative aims to ensure Palestinians remain on their land. UN Secretary-General António Guterres expressed the UN’s willingness to fully cooperate in the effort.

In a final statement, the summit announced the adoption of a “comprehensive Arab plan” and called for international support. The document stated that these efforts would align with a political process aimed at achieving Palestinian statehood, a goal opposed by Israeli leadership. The summit also urged Palestinian representation to be unified under the PLO, which currently excludes Hamas.

Egypt’s government presented a 112-page proposal featuring AI-generated images of housing developments, gardens, a commercial port, a technology hub, beachfront hotels, and an airport. However, the plan did not clarify who would govern Gaza, only mentioning support for a Palestinian administrative committee.

Challenges Ahead as Israel Rejects Plan

The reconstruction effort has not received approval from Israel, the occupying power in Gaza. Similar economic proposals in the past have failed due to Israeli restrictions, with Prime Minister Benjamin Netanyahu insisting on maintaining permanent control over Palestinian territories.

Hamas, despite being weakened by over a year of conflict, remains a major political force in Gaza. A senior Hamas official, Sami Abu Zuhri, stated that the group rejects any imposed solutions and called for protecting Palestinians’ right to self-governance without external intervention.

Hamas also issued a statement urging the Arab League to prevent the displacement of Palestinians, emphasizing the need for an effective Arab role in ending the humanitarian crisis in Gaza.

Egypt’s plan acknowledged the presence of armed groups in Gaza, suggesting that a credible political process could address the issue while restoring Palestinian rights. However, Egypt and several Arab states consider Hamas a threat and have cooperated with Israel in blockading Gaza.

Palestinian President Mahmoud Abbas, who leads the Western-backed PA in the occupied West Bank, attended the summit but has limited influence in Gaza.

UN Support and Regional Concerns

UN Secretary-General Guterres voiced support for the Arab initiative, warning against forced displacement and endorsing a reconstruction strategy led by Arab nations. He also called for the resumption of negotiations to extend a fragile ceasefire in Gaza.

While Israel’s military campaign has resulted in nearly 50,000 Palestinian deaths, Hamas, which killed approximately 1,200 people in its October attack, still holds Israeli hostages. Arab states have been quick to propose an alternative to Trump’s plan, fearing that forced displacement of Palestinians could destabilize the region.

Trump previously suggested that the U.S. should take control of Gaza and relocate its population to neighboring countries such as Jordan and Egypt. “The U.S. will take over the Gaza Strip, and we’ll do a job with it too. We’ll own it,” he stated.

The Arab League’s reconstruction plan aims to counter such proposals while seeking a long-term political resolution for Gaza’s future.

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