Egypt, Arab countries meet to discuss Trump’s Gaza plan, offer counterproposal

Arab leaders convened in Cairo on Tuesday for an emergency summit aimed at presenting a counterproposal to President Donald Trump’s Gaza plan. The summit was held to discuss Egypt’s $53 billion comprehensive reconstruction blueprint for Gaza.

Before Trump proposed resettling Gazans outside the enclave, Egypt and other Arab states had shown little interest in Gaza’s reconstruction. However, given that Egypt has ruled out accepting displaced Palestinians for “national security” reasons, it now finds itself compelled to devise its own plan.

With a $53 billion price tag, the plan is positioned as an alternative to Trump’s vision, and key details have already been shared by Arab media outlets. While Egypt proposes a temporary committee to manage Gaza for six months, Palestinians have made it clear that they will not accept any governing body that isn’t Palestinian or any foreign forces within Gaza. The plan is projected to take at least four and a half years. 

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People watch on a big screen as Egypt’s President Abdel Fattah al-Sisi, right, welcomes Jordan’s King Abdullah II ahead of an Arab League summit on Gaza on March 4, 2025. (Khaled Desouki/AFP via Getty Images)

The Egyptian plan is divided into two phases: the first, lasting two years and costing around $20 billion, and the second, spanning two and a half years with a $30 billion allocation. The funds will primarily go toward rebuilding residential areas devastated by conflict. 

Importantly, the plan does not call for the displacement of Gaza’s residents, as Trump’s proposal does, and stresses the importance of Palestinian-led reconstruction efforts, and that the Palestinian Authority will collaborate with Egypt and Jordan to train a police force for Gaza. But Hamas has already rejected the plan, and the Palestinian Authority has made it clear that it will not engage in reconstruction efforts as long as Hamas maintains control.

“The Saudis will fund Gaza if there’s a path to a Palestinian state and Hamas is gone,” Ghaith Al-Omari, senior fellow at the Washington Institute and former executive director of the American Task Force on Palestine told Fox News Digital, “Saudi Arabia, the UAE, and Qatar want something from the Israelis in return, whether it’s an end to the war or security agreements. They’ll insist on a role for the Palestinian Authority, even if symbolic, for diplomatic reasons. The question is whether the current Israeli government can meet these demands.”

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A view of the widespread destruction in Gaza, Jabalia, on Feb. 5, 2025. (Youssef Alzanoun/Middle East Images/AFP via Getty Images)

“A militarized Hamas cannot remain in Gaza – the strip must be demilitarized, and Hamas must no longer be in control. The Emiratis are even more extreme on this issue,” Danny Zaken, a senior commentator for Israel Hayom newspaper, told Fox News Digital, “The final draft of the Egyptian plan will avoid directly addressing Hamas. Instead of stating that Hamas will be removed and disarmed, it will say that ‘qualified Palestinian security forces will maintain order with Egyptian backing.’ This approach aims for unanimous approval without addressing Hamas’ fate, but the reality is that it has no practical validity, because in that case the plan has no financial backing,” he explained.

Al-Omari observed, “Arab League summits tend to be a lot of posturing. Who’s going to take care of security? The PA can’t handle that – they’re too weak. No Arab country wants to send troops to Gaza, but they’re also under pressure from the U.S. to contribute.”

An Egyptian diplomatic source told Fox News Digital that Egyptian construction firms are ready to begin work, but the real challenge is political. “Egyptian construction companies are very capable, and they can rebuild Gaza in three years – if there is political will, mainly from Israel and the U.S.,” the source said.

King Abdullah II of Jordan and President Donald Trump during a meeting in the Oval Office of the White House on Feb. 11, 2025. (Aaron Schwartz/CNP/Bloomberg via Getty Images)

While Egypt is eager to lead the reconstruction process, its ambitions have created friction with key Gulf states, which are expected to finance much of the effort. Zaken, noted, “The Saudis are concerned because the Egyptians want to control the entire process: Who gets the money, who oversees the reconstruction, who the contractors are for demolition and rebuilding? And even new housing and hotels. The other partners worry about corruption in the process.”

A former U.S. foreign service official warned Fox News Digital that Egypt’s ability to manage such funds is a concern. “The Gulf, which is expected to pay for it, is sick and tired of Egyptian corruption. If they fund the reconstruction, they will demand major oversight to ensure the money doesn’t get lost in Egypt’s power structure,” the source said.

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Members of the Hamas terror group gather in Gaza in preparation for the release of four female hostages as part of the ceasefire deal with Israel. (TPS-IL)

Meanwhile, Jordan, which has played a key diplomatic role, has managed to avoid direct involvement in the reconstruction debate. Following King Abdullah’s meeting with Trump, Jordanian officials felt that the pressure had shifted to Egypt and other Arab states. “The Jordanians were very happy with the outcome of the meeting with Trump. They feel that the pressure to accept [a] million Gazans is off them,” Al-Omari said.

At the same time, the broader political future of Gaza remains uncertain. Al-Omari noted that despite the ongoing reconstruction discussions, the primary concern for Arab leaders is how to navigate Trump’s unpredictable stance on Gaza. “Frankly, the main thinking in Arab governments right now is how to engage in a covert process with Trump to walk him back from this. No one expects immediate results, but they do hope that this will move Trump away from the idea of depopulating Gaza,” he said.

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For now, all eyes are on the summit. However, as one former diplomatic source put it, “There’s no real plan yet – just ideas. Everyone is trying to shape it in their favor, but until Hamas’ fate is resolved, we’re all just talking in circles.”