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Egypt’s $53 Billion Plan for Gaza Reconstruction: An Arab Response to U.S. Proposals

The Arab League’s Emergency Summit in Cairo introduced a $53 billion Egyptian reconstruction plan for Gaza, emphasizing ceasefire requirements and Palestinian unity. The plan proposes a transitional administration, a trust fund for recovery, and calls for a two-state solution while asserting the importance of Palestinian representation. Key challenges include Israeli cooperation and settlement expansions, raising questions about the plan’s viability.

On March 4, 2025, the Arab League convened an Emergency Summit in Cairo to launch a $53 billion Egyptian plan for the reconstruction of Gaza, marking the first comprehensive Arab response since the Israel-Hamas Agreement. This Cairo Declaration underscores the necessity for a ceasefire, primarily emphasizing Israel’s full compliance, reflecting a collective Arab strategy for Gaza’s future.

The plan lays out the establishment of a “Gaza administration committee” composed of capable Gazans for a transitional phase, alongside the establishment of a trust fund to facilitate recovery projects. It incorporates insights from the World Bank and the UN Development Fund while advocating for UN peacekeeping forces in both Gaza and the West Bank, aligning with previous Arab League declarations.

Consistent with the foundational Arab Peace Initiative of 2002, the Cairo Declaration reaffirms commitment to a two-state solution, conditioned upon international law and the establishment of a sovereign Palestinian state within the pre-1967 borders, with East Jerusalem serving as its capital. It stresses the importance of unifying Palestinian factions under the Palestine Liberation Organization (PLO), with a call for essential reforms.

The absence of any explicit reference to Hamas in the Cairo Declaration indicates a potential allowance for the group to remain operational during the transitional period. Despite criticism from Israel and the U.S. about this omission, the Declaration outlines the intention for a government transitional process leading to elections in Gaza and the West Bank, aiming to restore governance.

Hamas has expressed support for the Cairo Declaration and the proposed electoral process, a notable change since their last electoral success in 2006, which led to significant conflict with the Fatah party. Concerns linger regarding the potential re-election of Hamas, given their strong local support despite challenges. The Declaration firmly opposes any form of ethnic cleansing against Palestinians and reasserts the roles of Jordan and Egypt in the continuity of the Palestinian cause, contradicting U.S. suggestions for resettlement of displaced Gazans.

The Cairo plan seeks complete Israeli withdrawal from Gaza, underscoring this as a critical element for successful ceasefire implementation moving forward. The pathway to peace entails halting Israeli military activities, establishing interim governance in Gaza, and addressing the political status of Palestinian statehood in a manner acceptable to all stakeholders.

While the Cairo Declaration aims to present a counter-narrative to previous U.S. proposals concerning Gaza’s future, its realization is contingent upon cooperative engagement from Israel. Given Prime Minister Netanyahu’s current stance on Hamas and ongoing settlement expansions, the viability of implementing the two-state solution remains uncertain. The continued growth of Israeli settlements complicates any discussions of Palestinian statehood, raising significant challenges for future negotiations.

The Cairo Declaration presents a substantial alternative to international proposals by addressing Gaza’s post-conflict reconstruction through Arab collective action. It underscores the importance of ceasefire adherence, Palestinian unity, and international cooperation while critically opposing attempts at ethnic cleansing. However, achieving these goals hinges on Israel’s willingness to negotiate and halt settlement expansions, as the pursuit of a viable two-state solution faces significant obstacles. Overall, this declaration not only outlines a vision for Gaza’s future but also reveals the complexities involved in achieving lasting peace in the region.

Original Source: indianexpress.com

Leila Abdi

Leila Abdi is a seasoned journalist known for her compelling feature articles that explore cultural and societal themes. With a Bachelor's degree in Journalism and a Master's in Sociology, she began her career in community news, focusing on underrepresented voices. Her work has been recognized with several awards, and she now writes for prominent media outlets, covering a diverse range of topics that reflect the evolving fabric of society. Leila's empathetic storytelling combined with her analytical skills has garnered her a loyal readership.

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