Arab League's $53 billion plan aims to revive devastated Gaza

In recent months, the Gaza Strip has experienced unprecedented devastation due to military conflict with Israel. The healthcare sector alone has suffered damages amounting to $1.3 billion, with estimated losses of $6.3 billion. Furthermore, the education sector has faced losses of $3.2 billion following damages totaling $874 million. Economic impacts extend to trade and industrial areas, where damages sum to $5.9 billion alongside losses of $2.2 billion, highlighting the extensive toll the conflict has taken on Gaza's infrastructure and economy. The water and sanitation infrastructure has not been spared, registering $1.5 billion in damages and $64 million in losses. To address this destruction, stakeholders convened during an Emergency Arab League Summit in Cairo where an ambitious reconstruction plan was outlined. This plan, spearheaded by Egypt, has garnered unanimous support from Arab League participants, but faces significant hurdles including opposition from major powers such as Israel and the United States. At the summit, Egyptian President Abdel Fattah el-Sisi emphasized that establishing a fully sovereign Palestinian state is crucial for achieving lasting peace in the region. The comprehensive reconstruction initiative proposes a two-phase strategy that requires $53 billion in total funding. The first phase focuses on immediate restoration efforts and rebuilding critical infrastructure, while the second phase calls for the construction of 200,000 new housing units over two years, accommodating 1.6 million people and aiding the long-term development of Gaza. The plan underscores a commitment to meeting the needs of Gaza's population, projected to reach approximately 3 million by 2030, while reiterating the region's integral role within the Palestinian territories. Despite its solid foundation, the plan faces significant uncertainties regarding governance in Gaza post-conflict. Crucially, the Arab League’s initiative aims to create conditions favoring the full return of the Palestinian National Authority to govern Gaza, a move that may benefit Hamas tactically while also presenting opportunities for reintegration into the Palestinian political structure. Nevertheless, the outlook remains complex with ongoing international tensions and competing interests at play, ultimately leaving the future of both Gaza's reconstruction and a peaceful resolution to the conflict hanging in the balance.