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U.S. rejects Egypt’s Gaza reconstruction plan, citing uninhabitable conditions

05.03.2025 16:00
The United States has rejected an Egyptian-led proposal to rebuild Gaza, arguing the territory is currently uninhabitable and requires a different approach, a senior U.S. official said on Tuesday.
Palestinians gather near their tents to break their fast together on the fourth day of the holy month of Ramadan in Khan Younis, southern Gaza Strip, 04 March 2025.
Palestinians gather near their tents to break their fast together on the fourth day of the holy month of Ramadan in Khan Younis, southern Gaza Strip, 04 March 2025. EPA/HAITHAM IMAD

White House National Security Council spokesman Brian Hughes stated that while Washington acknowledges Arab efforts, the Egyptian plan does not reflect the reality on the ground.

“Gaza’s current condition makes habitation impossible. President Trump stands by his vision of a Gaza free from Hamas,” Hughes said, adding that the U.S. remains committed to discussions aimed at regional stability.

The Egyptian plan, endorsed at an Arab League summit in Cairo, proposes a $53 billion, five-year reconstruction effort without displacing Gaza’s population.

It envisions an interim administration of Palestinian professionals before eventual governance by the Palestinian Authority (PA), and includes parliamentary and presidential elections—the first in nearly 20 years.

Arab leaders reject Trump’s ‘vision’

The summit was convened in response to Trump’s proposal, which included U.S. administration of Gaza and resettling Palestinians in Arab states. Arab nations have consistently opposed this approach, reaffirming their stance in Cairo.

A key point of contention remains the governance of post-war Gaza. Both the U.S. and Israel demand Hamas’s removal, with Washington supporting a disarmed Gaza. Israel has dismissed both the Egyptian plan and the PA’s potential return to power.

Uncertainty over reconstruction funding

The Egyptian proposal lacks details on financing, but rebuilding Gaza would require significant contributions from Gulf states such as Saudi Arabia and the UAE, analysts say.

The UAE, which considers Hamas a security threat, insists on the group's complete disarmament, while other Arab nations advocate a phased approach.

Egypt’s 112-page proposal includes visual plans for new residential areas, ports, airports, and commercial hubs. Generated using artificial intelligence, the designs depict a modernized Gaza, envisioned as an economic center.

In Gaza, a fragile ceasefire has been in place since January 19, but its future remains uncertain.

Israel recently proposed prolonging the first phase of the truce, while Hamas pushed for its second phase, which would ultimately involve moving Israel’s ground out of Gaza.

Israel responded by blocking the humanitarian corridor to the area.

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Source: Reuters, IAR, PAP