Arab Leaders Gather in Cairo to Counter Trump’s Gaza Plan with $53 Billion Reconstruction Proposal

In a significant move to address the future of Gaza, Arab leaders convened in Cairo for an emergency summit focused on formulating a counterproposal to President Donald Trump’s vision for the region. At the heart of the discussions was Egypt’s ambitious $53 billion comprehensive reconstruction blueprint for Gaza, designed as an alternative to Trump’s suggestions, which included the resettlement of Gazans outside the enclave.

The summit underscores the urgency with which Arab states are approaching the situation in Gaza, particularly in light of Trump’s proposals. Prior to Trump’s plan, there was limited interest among Egypt and other Arab nations in spearheading Gaza’s reconstruction. However, Egypt’s firm stance against accepting displaced Palestinians due to national security concerns has propelled it to take a leading role in crafting its own solution.

Egypt’s proposed reconstruction plan is divided into two distinct phases. The initial phase, estimated to cost approximately $20 billion, will span two years and focus on the immediate rebuilding of residential areas that have been devastated by conflict. The subsequent phase, allocated $30 billion, is projected to last two and a half years and will address longer-term reconstruction needs.

A key aspect of the Egyptian plan is its emphasis on Palestinian-led reconstruction efforts, directly contrasting with Trump’s proposal that includes the displacement of Gaza’s residents. The plan also envisions collaboration between the Palestinian Authority (PA), Egypt, and Jordan to train a police force responsible for maintaining order within Gaza. Additionally, the proposal includes the formation of a temporary committee to manage Gaza for six months.

Despite the detailed nature of the Egyptian plan, it faces significant hurdles. Hamas has already rejected the proposal, and the PA has stated that it will not participate in reconstruction efforts as long as Hamas maintains control of Gaza. These rejections highlight the complex political landscape and the challenges of achieving consensus on Gaza’s future.

Adding another layer of complexity, Saudi Arabia has indicated its willingness to financially support Gaza’s reconstruction, but only if there is a clear path towards the establishment of a Palestinian state and the removal of Hamas from power. Other Gulf states, including the UAE and Qatar, are also expected to tie their financial contributions to specific conditions, such as an end to the conflict and security agreements. These nations are likely to insist on a role for the PA, even if symbolic, for diplomatic reasons.

The potential involvement of Gulf states also raises concerns about transparency and accountability. There are worries that Egypt’s control over the reconstruction process could lead to corruption, with funds being mismanaged or diverted. Gulf states, which are expected to provide the bulk of the funding, are likely to demand stringent oversight to ensure that the money is used effectively and does not get lost in Egypt’s power structure.

The issue of security in Gaza is another major point of contention. While the Egyptian plan aims to avoid directly addressing the fate of Hamas, it proposes that "qualified Palestinian security forces" maintain order with Egyptian backing. However, critics argue that this approach is unrealistic, as a militarized Hamas cannot remain in Gaza if the region is to be demilitarized and stabilized. No Arab country is willing to send troops to Gaza, but they are under pressure from the U.S. to contribute to the reconstruction effort.

Jordan has carefully navigated its role in the Gaza situation. Following King Abdullah’s meeting with Trump, Jordanian officials believe that the pressure to accept displaced Gazans has shifted to Egypt and other Arab states.

Amidst these discussions, the broader political future of Gaza remains uncertain. Arab leaders are primarily focused on how to engage with Trump’s unpredictable stance on Gaza. The hope is to subtly steer him away from the idea of depopulating Gaza.

As the summit unfolds, the focus remains on whether a unified vision for Gaza can be achieved. As one diplomatic source stated, there’s no real plan yet, only ideas. Everyone is trying to shape it in their favor, but until Hamas’ fate is resolved, discussions are likely to continue in circles.

The meeting in Cairo underscores the complex interplay of political, security, and economic factors that will determine the future of Gaza. While Egypt’s $53 billion reconstruction plan offers a concrete framework for addressing the immediate needs of the region, its success hinges on overcoming significant obstacles, including internal Palestinian divisions, regional rivalries, and the evolving policies of the United States.