On Tuesday, Arab leaders approved an Egyptian plan to rebuild Gaza, which is expected to cost $53 billion. This initiative aims to restore the enclave without forcing Palestinians to relocate, presenting a different approach from U.S. President Donald Trump’s "Middle East Riviera" vision. The White House stated that the Arab states' plan did not reflect the actual situation in Gaza and that Trump stood by his own proposal.

Trump’s plan, which aimed to displace Palestinians and bring Gaza under U.S. control, was widely condemned worldwide last month. It reinforced Palestinian fears of permanent expulsion from their land. Egyptian President Abdel Fattah al-Sisi announced at a summit in Cairo that the Egyptian proposal will be adopted. The proposal was welcomed by Hamas and criticised by Israel and the US. Sisi expressed confidence at the summit that peace can be achieved as desired by Trump, as the entire Gaza Strip was severely destroyed during the Israeli military offense.

Key questions about Gaza’s future remain unresolved, including who will govern the enclave and which nations will fund its massive reconstruction efforts.

Egyptian President Abdel Fattah al-Sisi stated that Egypt, in coordination with Palestinian officials, helped establish an administrative committee composed of independent Palestinian technocrats. This committee would temporarily oversee Gaza’s governance and humanitarian aid distribution, paving the way for the Palestinian Authority (PA) to take control eventually.

Another primary concern is the future of Hamas, the PA’s rival. Hamas launched an attack on Israel on October 7, 2023, killing 1,200 people and taking over 250 hostages, according to Israeli reports.

In response, Israel launched a military offensive in Gaza, resulting in more than 48,000 Palestinian deaths, according to Gaza’s health ministry. The assault has also displaced nearly the entire population, sparking accusations of genocide and war crimes, allegations that Israel denies. Hamas, which has governed Gaza since 2007, announced its approval of the Egyptian committee proposal.

While Hamas agreed not to nominate candidates for the committee, it insisted on having a say in its tasks, members, and agenda, even though the committee would function under the supervision of the Palestinian Authority (PA).

Egyptian Foreign Minister Badr Abdelatty confirmed on Tuesday that the individuals who would serve on the committee had been selected.

Palestinian President Mahmoud Abbas welcomed the Egyptian initiative and urged Trump to support a plan that would not involve displacing Palestinians.

Abbas, who has been in power since 2005, also expressed his willingness to hold presidential and parliamentary elections if conditions allowed. He emphasised that the PA remains the only legitimate governing and military authority in the Palestinian Territories.

Hamas also expressed its support for elections.

However, Abbas has faced increasing challenges to his authority, mainly due to Israeli settlement expansion in the occupied West Bank. Many Palestinians view his administration as corrupt, undemocratic and disconnected from their needs.

The Israeli foreign ministry stated that the plan was “rooted in outdated perspectives” and abandoned its reliance on the Palestinian Authority while also pointing out that it left Hamas in power. Washington also opposed the proposal.

“The current proposal does not address the reality that Gaza is currently uninhabitable and residents cannot humanely live in a territory covered in debris and unexploded ordnance,” When asked if Trump would support the Arab leaders' plan, White House spokesman Brian Hughes expressed. “President Trump stands by his vision to rebuild Gaza free from Hamas,” he stated. 

Rebuilding efforts in Gaza would require significant financial support from wealthy Gulf nations like the UAE and Saudi Arabia, which have the necessary resources.

Palestinian Prime Minister Mohammed Mustafa stated that the reconstruction fund would seek international funding and oversight, with the World Bank likely serving as its base.

The UAE views Hamas and similar Islamist groups as a serious threat and demanded the group’s complete and immediate disarmament. However, other Arab nations prefer a more gradual approach, according to a source familiar with the discussions.

A source close to Saudi Arabia’s leadership indicated that Hamas’ continued armed presence in Gaza remains a major obstacle, as both the US and Israel strongly oppose it and would need to approve any reconstruction plan.

At the summit, Saudi Foreign Minister Prince Faisal bin Farhan stressed the need for international guarantees to ensure the current ceasefire remains. He also expressed support for the Palestinian Authority taking control of Gaza. Leaders from the UAE and Qatar did not speak during the summit’s open public sessions.

Hamas was established in 1987 by Egypt’s Muslim Brotherhood during the first Palestinian uprising, known as the Intifada.

On Tuesday, senior Hamas official Sami Abu Zuhri dismissed calls from Israel and the U.S. for the group to disarm, stating that their right to resist is non-negotiable. He also made it clear that Hamas would not accept any external administration, foreign forces, or imposed political plans.

Since expelling the Palestinian Authority from Gaza in a brief civil war in 2007, Hamas has maintained strict control over the territory, suppressing any opposition.

For nearly a month, Egypt, Jordan, and Gulf Arab nations have been discussing alternatives to a U.S.-led plan, which they believe could result in the displacement of Palestinians and a foreign takeover of Gaza, potentially destabilising the region.

A draft statement from a recent summit firmly rejected the forced displacement of Palestinians from Gaza. Egypt has drafted a detailed 112-page plan for rebuilding Gaza, featuring maps and AI-generated images showcasing proposed developments. The plan envisions new housing, gardens, community centres, a commercial port, a technology hub, beachside hotels, and even an airport.

A source familiar with the matter suggested that Israel might not object to an Arab-led administration in Gaza, provided Hamas is no longer in power. However, an Israeli official told Reuters that Israel’s primary objective from the start has been to eliminate Hamas’ military and governance structures.

“Therefore, if they are going to get Hamas to agree to demilitarise, it needs to be done immediately. Nothing else will be acceptable,” said the official.

Sources linked to Hamas claim the group has suffered only a few thousand casualties in the Gaza war. However, Israeli officials estimate that around 20,000 Hamas fighters have been killed, asserting that the group has been dismantled as a structured military force.