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Egypt’s Gaza Reconstruction Plan ‘Approved’ by Arab Leaders

March 4, 2025

In a landmark gathering held in Cairo on 4 March, Arab leaders convened for an Extraordinary Arab Summit to address the ongoing humanitarian crisis and devastation in the Gaza Strip following months of relentless Israeli bombardment.

Egypt’s President Abdel Fattah Al-Sisi announced following the summit that a five-year comprehensive reconstruction plan for Gaza, aimed at rebuilding the war-torn enclave while ensuring Palestinians remain on their land and rejecting any attempts at forced displacement, had received “consensus” from Arab leaders.

In a statement released following the summit, President Al-Sisi emphasized Egypt’s unwavering opposition to the forced displacement of Palestinians from Gaza.

“On this significant day for the Palestinian cause, I would like to thank the Arab Leaders participating in the Extraordinary Arab Summit held in Cairo,” Al-Sisi said. “I appreciate the consensus among the Arab countries to support the reconstruction plan for the Gaza Strip, which allows the Palestinian People to stay on their land without displacement.”

“We welcome any proposals or ideas from the international community to ensure the success of this plan, which needs to be implemented side by side with a greater plan for peace,” continued the statement by Al-Sisi.

Al-Sisi stressed that the reconstruction plan must go hand-in-hand with a broader political framework that revives the peace process, firmly grounded in the two-state solution. The Egyptian president expressed optimism about working with regional partners and the international community, including US President Donald Trump, to advance a comprehensive settlement to the Israeli-Palestinian conflict.

Earlier during the summit, Al-Sisi said that Egypt’s plan for Gaza’s reconstruction would lead to the establishment of a Palestinian state.

“It is time to present a path to peace that leads to the establishment of a Palestinian state in accordance with the resolutions of international legitimacy,” Al-Sisi asserted, adding that Cairo will host an international conference next month to mobilize funding and global support for Gaza’s reconstruction.

A Multi-Phase Vision for Gaza’s Reconstruction

The Egyptian plan, which seemed to have been endorsed by the Arab League during the summit, outlines a multi-phase roadmap for Gaza’s recovery, targeting infrastructure redevelopment, economic revitalization, and sustainable governance.

The five-year plan, with a total estimated cost of USD 53 billion, envisions Gaza evolving into a city complete with green infrastructure, smart buildings powered by renewable energy, and development zones tailored to industry, agriculture, education, and tourism. The plan aims to accommodate up to three million Palestinians by 2030, creating 500,000 jobs across key sectors.

The reconstruction plan will rely on a blended funding strategy, drawing contributions from international agencies, development banks, private sector investors and other sources.

According to state media Al-Ahram which obtained a copy of the plan, the plan has a number of key phases:

Early Recovery (6 months, USD 3 billion)

  • Clearing rubble along Gaza’s Salah Al-Din central axis.
  • 200,000 temporary housing units for displaced families.
  • Restoring partially damaged homes for 360,000 people.
  • Social protection programs and soft loan schemes to support self-help rehabilitation.

Reconstruction Phase 1 (2 years, USD 20 billion)

  • Full rubble clearance and establishment of essential utilities and networks.
  • 200,000 new housing units alongside key government and service buildings.
  • Reclamation of 20,000 feddans for agricultural and economic development.

Reconstruction Phase 2 (2.5 years, USD 30 billion)

  • Construction of another 200,000 housing units to meet Gaza’s population needs.
  • Launching the first phase of a 600-feddan industrial zone.
  • Developing fishing and commercial ports, building Gaza Airport, and constructing a 10 km Corniche Road along the Mediterranean coast.

The plan also reportedly divides Gaza into five specialized sectors:

  • Rafah – Logistics Hub
  • Khan Younis – Science and Knowledge Center
  • Deir Al-Balah – Peace and Community Center
  • Gaza City – Administrative and Government Headquarters
  • Northern Gaza – Cultural and Heritage Zone

Under the plan, Gaza will also feature six urban zones, including low, medium, and high-density residential areas, commercial hubs, green spaces, and agricultural and industrial corridors.

Arab and International Endorsement

The plan received strong backing from Arab leaders attending the summit, including Palestinian President Mahmoud Abbas, Jordan’s King Abdullah II, and Lebanon’s President Joseph Aoun, who all emphasized the importance of preserving Gaza’s territorial integrity and Palestinian sovereignty.

Abbas praised the Egyptian-led effort, highlighting that reconstruction cannot come at the expense of Palestinian rights. He announced that the Palestinian Authority (PA) will assume full governance over Gaza, supported by the creation of an independent, non-partisan temporary Gaza Administration Committee tasked with managing the transition period.

Jordan’s King Abdullah II stressed that humanitarian access must be urgently facilitated, while reiterating Jordan’s commitment to strengthening the PA and pursuing the two-state solution as the only viable path to peace.

During the summit, Egypt’s President in addition to other Arab leaders stressed that the plan must be embedded within a broader political process that guarantees Palestinian statehood.

The summit was also attended by non-Arab figures. European Council President António Costa reaffirmed the EU’s commitment to Gaza’s reconstruction, while rejecting any demographic changes that could displace Palestinians. Costa stressed that all rebuilding efforts must respect Palestinian rights and uphold Gaza’s status as an integral part of a future Palestinian state.

UN Secretary-General António Guterres echoed these sentiments, calling for an end to Israeli occupation and the preservation of Palestinian sovereignty. Guterres warned that peace cannot be achieved through displacement or forced demographic changes, urging the international community to prioritize humanitarian aid and commit to a political framework that secures lasting peace.

Egypt’s President Al-Sisi emphasized, however, that reconstruction cannot succeed without a parallel commitment to a comprehensive peace process, ensuring Palestinians’ right to self-determination, an end to occupation, and the realization of a sovereign Palestinian state.

Since 7 October 2023, Israel has killed more than 47,000 Palestinians in Gaza, including more than 13,000 children and 7,200 women. More than USD 29.9 billion in physical damage has been caused by Israel’s war on Gaza, in addition to USD 19.1 billion in economic losses. The war on Gaza has left the majority of Gazans, more than two million, displaced, facing critical shortages of food, water and medical supplies.

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