CAIRO — Arab leaders have approved a $53 billion (£41.4 billion) reconstruction plan for Gaza, positioning it as a counterproposal to former U.S. President Donald Trump’s controversial idea to relocate over two million Palestinians and take control of the region.

The decision was made during an emergency summit held in Cairo, where the plan was elevated to an “Arab plan” by the Arab League.

Ahmed Aboul Gheit, Secretary-General of the Arab League, emphasized the unified stance against displacement, whether voluntary or forced. “The Arab stance is to reject any displacement,” he declared, without directly referencing Trump’s plan.

Egypt, which spearheaded the initiative, presented a comprehensive 91-page blueprint featuring visuals of tree-lined neighborhoods and grand public buildings.

The plan is not merely a construction project but is rooted in political objectives and the rights of Palestinians, signaling a broader strategy to challenge the U.S. proposal, infamously labeled as a “Middle East Riviera.”

A Path Towards a Two-State Solution

Egyptian President Abdul Fattah al-Sisi, in his opening remarks, advocated for a dual approach—rebuilding Gaza while progressing towards a two-state solution.

This concept, envisioning a Palestinian state alongside Israel, is widely supported by Arab states and the international community but remains firmly opposed by Israeli Prime Minister Benjamin Netanyahu and his allies.

The proposed plan includes the temporary governance of Gaza by a “Gaza management committee,” composed of qualified technocrats under the Palestinian government’s umbrella.

However, it sidesteps the contentious issue of Hamas’s involvement, referring ambiguously to the “obstacle” of militant groups.

While some Arab states call for Hamas’s dismantling, others argue that such decisions should be left to the Palestinians. Hamas has reportedly accepted that it will not govern Gaza directly but insists that disarmament is non-negotiable.

Security Challenges and Financial Uncertainty

Security remains a critical challenge, with the plan urging the UN Security Council to deploy international peacekeepers. Financially, wealthy Gulf states have shown a willingness to contribute, yet investors remain hesitant amid a fragile ceasefire that threatens to unravel.

A major international conference is set for next month to raise the required funds, contingent on assurances that the rebuilt Gaza will not be destroyed in future conflicts.

The reconstruction plan is structured into three phases, beginning with an “early recovery stage” lasting about six months, focusing on clearing rubble and unexploded ordnance.

The subsequent phases would extend over several years. During this period, 1.5 million displaced Palestinians would be accommodated in temporary container housing, which the plan depicts as well-designed units amidst landscaped surroundings.

Meanwhile, former President Trump has continued to question why Gazans would resist relocation, describing Gaza as a “demolition site.”

According to UN estimates, 90% of homes in the territory are either damaged or destroyed, and essential infrastructure, including schools, hospitals, and electricity networks, is in disarray.

The coming months are likely to test the viability of this Arab-led plan, as the international community assesses whether the proposed reconstruction can offer a sustainable path forward for Gaza and its people.