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.
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