What to know about Arab-backed $53B Egyptian plan to rebuild Gaza in face of Trump’s ‘Riviera’ proposal

BY

Amr Mohamed Kandil

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Wed, 05 Mar 2025 - 01:39 GMT

BY

Amr Mohamed Kandil

Wed, 05 Mar 2025 - 01:39 GMT

CAIRO – 5 March 2025: Arab leaders on Tuesday endorsed an Egyptian plan for Gaza reconstruction, aimed to provide an alternative to a proposal unveiled by US President Donald Trump to “take over” Gaza and turn it into the “Riviera of the Middle East.”

The $53 billion plan adopts a five-year timeframe for post-war Gaza, according to a document obtained by local and foreign media outlets. Palestinian President Mahmoud Abbas said during Tuesday’s extraordinary Arab summit in Egypt that the Palestinian Authority will reassume control over the Gaza Strip under the plan.

The plan, coordinated with the State of Palestine and Arab nations, is built on extensive studies by the World Bank and the United Nations Development Programme (UNDP).

The war in Gaza over the past 16 months has devastated more than 60 percent of homes and 65 percent of roads with roughly 51 million tons of rubble blanketing the enclave, according to UN estimates this week.

The Egyptian reconstruction plan aims to make sure that Gaza residents remain on their lands while their homes and other facilities are being reconstructed.

It serves as an alternative to US-Israeli plans to relocate residents outside their lands, mainly to Egypt and Jordan, in the post-war phase, which have been fully rejected by the Arab states and much of the international community.

Trump in February brought Arab and global backlash after stating during a press conference with Israeli Prime Minister Benjamin Netanyahu that the US “will take over the Gaza Strip and we will do a job with it too.”

Trump later backtracked, saying that he will not impose his “good” plan regarding Gaza, claiming that he was surprised by Egypt and Jordan rejection.

GAZA GOVERNANCE

During his speech at the summit, President Abdel Fattah El-Sisi underlined Egypt’s efforts to form “an administrative committee comprising Palestinian professionals and independent technocrats, entrusted with managing the Gaza Strip” after the war.

He added that this committee will be responsible for managing Gaza for a temporary period and supervising the relief process, in preparation for the return of the Palestinian Authority to the enclave.

The Arab summit, in its final communique, endorsed Egypt’s plan, which is fully coordinated with the State of Palestine and Arab countries and based on studies conducted by the World Bank and the United Nations Development Programme (UNDP) regarding early recovery and reconstruction of Gaza.

The summit considered the initiative as “a comprehensive Arab plan.”

The Arab leaders agreed on working to provide all forms of financial, material, and political support for the plan’s implementation, urging the international community and international and regional financing institutions to swiftly provide the necessary support for the plan.

TEMPORARY HOUSING

A critical component of Egypt’s reconstruction plan addresses the immediate needs of those displaced by the war.

The plan proposes the establishment of seven temporary housing sites capable of accommodating over 1.5 million individuals.

These sites will feature housing units designed to house an average of six people each. The distribution of these sites includes:

  • Rafah: Around 213,000 individuals
  • Khan Younis: About 223,000 individuals
  • Deir Al-Balah: Around 184,000 individuals
  • Gaza City: About 353,000 individuals
  • Northern Gaza: About 197,000 individuals
  • Additional sites in Gaza: Each with a capacity of 176,000 individuals.

 

PHASED RECOVERY TIMELINE

The timeline for the reconstruction is divided into phases.

-The first phase, termed "early recovery," will last six months with an estimated cost of $3 billion. During this period, efforts will focus on debris removal in central areas.

This initial phase aims to provide 200,000 temporary housing units for 1.2 million people and to begin repairing 60,000 partially destroyed homes to accommodate 360,000 individuals upon completion in the next phase.

-The second phase, the reconstruction phase, is divided into two stages: the first is set to span two years with a budget of $20 billion.

Key objectives include completing debris removal, completing the reparation of the 60,000 damaged units, and constructing 200,000 new permanent housing units for 1.6 million individuals.

Additionally, the plan includes reclaiming 20,000 feddans (feddan=1.03 acre) of agricultural land and establishing essential services such as electricity, telecommunications and systems for water supply, firefighting and sanitation.

The second stage of the reconstruction phase will last 2.5 years, costing about $30 billion.

This phase aims to continue building necessary infrastructure and services, along with the construction of another 200,000 permanent housing units, bringing the total to 460,000 units capable of housing 3 million people.

Plans also include the development of a 600-feddan industrial zone, a fishing port, a commercial port, and an airport in Gaza.

FINANCIAL NEEDS, FUNDING SOURCES

The total estimated cost of Egypt's reconstruction plan is $53 billion, segmented into the following phases:

  1. Early Recovery Phase: Requires $3 billion for immediate needs such as debris removal and temporary housing.
  2. First Reconstruction Phase: Estimated at $20 billion, extending until 2027, focused on infrastructure, permanent housing, and agricultural land reclamation.
  3. Second Reconstruction Phase: Requires $30 billion, extending until 2030, aimed at completing the infrastructure and establishing industrial areas and ports.

 

Funding sources are diverse and include contributions from the United Nations, international financial institutions, donor countries, and investment funds. The plan also emphasizes attracting foreign direct investment from multinational companies and engaging civil society organizations to mobilize resources for recovery efforts.

To ensure efficient management and transparency, a trust fund will be established under international supervision. This fund will facilitate the allocation of financial commitments and ensure accountability in the use of resources.

CALL FOR GLOBAL SUPPORT

Recognizing the scale of the challenges ahead, the Egyptian government intends to convene a high-level ministerial conference in Cairo to rally support for the reconstruction plan.

This conference will involve collaboration with the Palestinian Authority, the United Nations, donor countries, and both local and international civil society organizations.

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