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Arab countries, led by Egypt, have categorically rejected President Trump’s proposal for the U.S. to “take over” Gaza and resettle its more than 2 million Palestinian residents to turn the territory into a luxury real estate development. Instead, they’ve put forward an alternative.

In a Cairo summit, the leaders of the 22-member Arab League voted with a single voice to approve Egypt’s initiative which promises that no residents of Gaza would be uprooted during rebuilding.

The plan was fast opposed by the Trump administration as well as Israel, its closest ally. The White House re-emphasized Trump’s assertions that Gaza has become uninhabitable due to damage inflicted as a result of Israel’s 15-month conflict against Hamas.

Palestinians in Gaza, speaking with CBS News, have strongly opposed any attempt to drive them out of their homeland. The U.N. Secretary-General and others warned that forcing them out would amount to ethnic cleansing.

Hamas supported the Arab League proposal but still rejects disarming—something Israel maintains must happen before a ceasefire can be negotiated.

U.S. and Israel Reject Arab Plan

Israel quickly turned down the Egyptian-sponsored proposal, whose Foreign Ministry indicated that the proposal is premised on the Palestinian Authority (PA) and United Nations Relief and Works Agency (UNRWA), which it blames for being corrupt and being terrorism-linked.

Egyptian Foreign Minister Badr Abdelatty rebuffed Israeli arguments, maintaining that the PA and UNRWA are tokens of international legitimacy. Israel is accused by him of violating international law and U.N. resolutions.

Israel’s Foreign Ministry also accused the Arab states of having employed Palestinians as political hostages against Israel in the past. It joined Netanyahu’s support for Trump’s plan as an “opportunity for Gazans to have free choice”—even though Trump has stated that they would not be allowed to return to Gaza.

U.S. National Security Council spokesman Brian Hughes echoed Trump’s argument that the Arab offer fails to acknowledge Gaza is no longer livable due to war damage. He echoed Trump’s vision of rebuilding Gaza without Hamas and called for additional negotiations to achieve stability in the region.

Details of the Arab Reconstruction Plan

The Egyptian plan is divided into three stages:

1. Emergency Relief (6-12 months, $3 billion) – Providing short-term humanitarian relief and building 200,000 temporary housing.

2. Infrastructure and Housing (2 years, $20 billion) – Building 200,000 permanent homes and repairing essential services.

3. Long-term Development (2 years, $30 billion) – Building another 200,000 homes, reconstructing ports and an airport.

The initiative would have a separate Palestinian technocrat committee operate Gaza for half a year, after which control would be regained by the Palestinian Authority. The training of Palestinian security forces is being done by Egypt to help maintain stability, though no specific time frame was mentioned.

However, first there must be a permanent ceasefire under which any construction can occur—something given Israel’s new blockade of Gaza borders and refusal of all access for aid.

Push for Global Support

Egyptian President Abdel Fattah el-Sissi called for global support of the $53 billion plan and an invitation to a reconstruction conference later this month. He also proposed deploying international peacekeepers to stabilize the Gaza Strip and the West Bank.

Attendees at the summit reaffirmed UNRWA’s role in relief for Palestinian refugees. Israel, which long suspected UNRWA of being Hamas-linked, recently banned the agency from conducting business on its territory.

Egypt and the Arab League will attempt next week to secure backing for their scheme from the rest of the Muslim-majority nations at a Saudi Arabian summit. An EU official attended the Cairo summit but the European Union has yet to issue a formal response to the proposal.

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