Arab leaders approved Egypt’s $53 billion reconstruction plan for Gaza on Tuesday, rejecting U.S. President Donald Trump’s proposal for resettling Palestinians and instead advocating a Palestinian-led governance structure.
Speaking at the Cairo summit, Egyptian President Abdel Fattah al-Sisi announced that a temporary Palestinian technocratic committee would oversee aid distribution and governance until the Palestinian Authority (PA) returns to power.
Palestinian President Mahmoud Abbas welcomed the plan, urging U.S. support and reiterating that the PA remains the only legitimate authority in Palestinian territories.
The Gulf states, particularly Saudi Arabia and the UAE, are expected to play a key role in financing reconstruction. However, the continued armed presence of Hamas remains a sticking point in negotiations.
While Arab leaders push for a phased approach to Hamas disarmament, Israel insists the group must immediately surrender its weapons. Hamas, however, refuses to demilitarize, calling resistance non-negotiable.
For weeks, Egypt, Jordan, and Gulf states have been working on an alternative to Trump’s Gaza redevelopment plan, which envisioned Palestinian relocation and U.S.-led rebuilding.
The 112-page Egyptian proposal features housing developments, community centers, a commercial port, and an airport, aiming to revitalize Gaza without displacement.
While Israel may accept an Arab-backed governance model, officials demand immediate Hamas disarmament, warning that any delay is unacceptable.
As talks over Gaza’s future continue, the battle over its leadership and reconstruction remains unresolved.
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