Economic Update: Reconstruction Efforts in Gaza
A comprehensive assessment conducted by the United Nations, the European Union, and the World Bank estimates that the Gaza Strip and the West Bank will require approximately $53.2 billion for recovery and reconstruction over the next decade. Of this sum, $20 billion is needed within the first three years following recent conflicts.
This assessment emerges in the wake of a ceasefire agreement between Israel and the Palestinian Hamas movement, which followed a conflict that resulted in extensive casualties and damage, impacting tens of thousands of Palestinians and destroying thousands of homes and infrastructure.
In a strategic move, Egyptian President Abdel Fattah El-Sisi is expected to travel to Riyadh on February 20 to engage in discussions regarding an Arab-led reconstruction initiative for Gaza. This plan is anticipated to involve financial contributions from regional countries totaling $20 billion.
The planned discussions among Arab nations aim to devise a rebuilding strategy in response to a proposal from U.S. President Donald Trump, which has been met with skepticism and rejection by several countries in the region. The proposal previously suggested the development of the sector under U.S. control while displacing existing Palestinian residents.
Leaders from Saudi Arabia, Egypt, Jordan, the UAE, and Qatar are set to deliberate on the reconstruction plan in Riyadh, which will subsequently be presented at the Arab Summit scheduled for March 4 in Cairo.
On February 20, these Arab leaders will convene in Saudi Arabia to advance discussions on the reconstruction framework, which is primarily aligned with an Egyptian proposal. Key elements of the plan include the establishment of a Palestinian governing body for Gaza, excluding Hamas, along with provisions for international cooperation in the rebuilding efforts while safeguarding the rights of the current Palestinian population.
Initial discussions suggest varying financial commitments from regional participants, with a targeted completion for the reconstruction efforts projected within a three-year timeframe.
Israel is awaiting further details on the Arab reconstruction plan to evaluate its implications. Israeli Foreign Minister Jadaoun Saar emphasized the necessity of ensuring the plan does not facilitate the continuation of Hamas’s governance in Gaza.
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