Middle East
Gaza reconstruction plan: $53 billion needed, Palestinian Authority to govern
According to a plan devised by Arab leaders, the governance of Gaza will be handed over to the Palestinian Authority.
The “Arab plan,” prepared by Egypt for the reconstruction of Gaza and adopted at the Arab League’s Cairo Summit, envisages the establishment of a temporary administrative committee for a period of six months, followed by the transfer of Gaza’s governance to the Palestinian Authority. The plan suggests that, without explicitly naming Hamas, the group would lay down its arms if a credible political process is initiated.
Egypt has prepared a 91-page plan titled “Early Recovery, Reconstruction, and Development of Gaza.”
The report on this plan states that the total material damage resulting from Israel’s war of destruction on Gaza amounts to $29.9 billion, with the housing sector being the most affected, costing $15.8 billion and constituting 53% of the total damage.
According to the report, an estimated 30,000 residential buildings have been damaged, of which 272,000 apartments have been completely destroyed, and 58,500 apartments have been partially damaged.
The report indicates that satellite imagery reveals that 1,190 kilometers of Gaza Strip’s roads have been destroyed, with an additional 415 kilometers severely damaged and 1,440 kilometers significantly damaged.
In the health sector, the damage is estimated at $1.3 billion, with losses amounting to $6.3 billion. The report notes that 50% of the hospitals in the Gaza Strip (18 hospitals) are completely out of service, while 17 hospitals are partially operational, failing to meet the increasing health needs.
In the education sector, the damage is estimated at $874 million, with losses reaching $3.2 billion. The report highlights that 88% of schools have been destroyed, with the remainder converted into temporary shelters for families fleeing the war. Additionally, 51 university buildings have been destroyed.
In the trade and industry sector, the damage amounts to $5.9 billion, with losses totaling $2.2 billion. The report also estimates that the damage in the transportation sector is $2.5 billion, with losses of $377 million.
The damage in the water and sewage sector is recorded at $15 billion, with losses reaching $64 million. In the electricity sector, losses are estimated to be $450 million.
Recovery and reconstruction needs
Considering these damages, the plan estimates the total need for Gaza’s reconstruction at $53 billion, with $3 billion allocated for “early recovery” to be used within six months.
The report states that the housing sector accounts for the largest share of recovery needs, with a total value of $15.2 billion. This is followed by the health, trade, and industry sectors, each requiring $6.9 billion for recovery, roads at $2.45 billion, and the electricity sector at $1.5 billion.
The education sector needs $3.8 billion for recovery, while the agriculture and social protection sectors each require $4.2 billion. The transportation sector needs $2.9 billion, and the water and sanitation sector needs $2.7 billion.
The report indicates a need for $1.25 billion for a four-stage process that includes debris removal, unexploded ordnance disposal, recycling, and transformation.
Implementation stages of the plan
The report emphasizes the need to prepare a roadmap and an urgent development plan for the reconstruction of the Gaza Strip in three phases over a five-year period until 2030, accommodating approximately 3 million people.
The first phase, termed the “early recovery phase,” with an estimated timeframe of six months and a cost of $3 billion, includes tasks such as removing debris in some areas and repairing them for temporary housing, repairing 60,000 partially damaged houses to accommodate 360,000 people, and constructing 200,000 temporary housing units to accommodate 1.2 million people.
The second phase, with a two-year timeframe and a cost of $20 billion, envisages the construction of 200,000 new housing units, infrastructure development, completion of debris removal and sorting, restoration of 60,000 houses to accommodate 1.6 million people, reclamation of 20,000 acres of land, and the establishment of service facilities.
The third phase, termed the “second phase of reconstruction,” is expected to be completed in 2.5 years at a cost of $30 billion. This phase includes the construction of an additional 200,000 housing units to accommodate 1.2 million people and infrastructure development.
The report states that this phase envisages the establishment of the first stage of an industrial zone on a 600-acre area, as well as the construction of a fishing port, a commercial port, and Gaza Airport. It also indicates the provision of 500,000 jobs for Palestinians in Gaza in various sectors.
Political context of the plan
The plan states that while preserving the internationally accepted two-state solution horizon, reconstruction is based on the rights and dignity of Palestinians.
Emphasizing the rejection of any attempts to displace Palestinians from Gaza, the plan points out that it is illogical to ignore the desire and right of the Palestinian people, who are firmly attached to their land, to remain on this land in the face of this catastrophic crisis that the Gaza Strip and its people are experiencing.
Noting that the Gaza Strip is an integral part of the Palestinian territories, the plan warns that attempts to geographically separate Gaza from the West Bank will lead to further instability.
The plan warns that ignoring the suffering of Palestinians in Gaza could lead to an escalation of conflicts in the region and calls on the international community to support reconstruction efforts primarily for humanitarian reasons.
Transitional governance during Gaza’s reconstruction
Regarding the governance of Gaza during the reconstruction process, the plan indicates that efforts are underway to establish a temporary administrative committee composed of independent technocrats under the umbrella of the Palestinian government in the Gaza Strip for a period of six months, with the aim of paving the way for the full return of the Palestinian National Authority to the Gaza Strip.
The plan emphasizes that what is currently expected from the international community is to support and encourage these efforts to ensure the success of the administrative committee and its ability to manage the subsequent phase.
Regarding the mission to ensure security in Gaza, the plan notes that Egypt and Jordan are working to train Palestinian police to be sent to the Gaza Strip to enable the Palestinian Authority to return to the Gaza Strip and fulfill its administrative duties.
Calling for these efforts to be supported by political and financial support and the efforts of international and regional partners, the plan suggests that the United Nations Security Council consider deploying an international peacekeeping force in the Palestinian territories, including Gaza and the West Bank, within a clear timetable for the establishment of a Palestinian state.
The plan indicates that the problem of numerous Palestinian parties carrying weapons in Gaza can be eliminated forever “if the reasons are removed through a credible political process with a clear horizon and ensuring the return of rights to their owners.”
Egypt’s plan emphasizes that all previous efforts should be directed towards implementing the two-state solution and working to achieve a medium-term ceasefire between Israel and the Palestinian Authority, encompassing the West Bank and Gaza, as well as halting all unilateral initiatives such as settlement construction, house demolitions, military interventions, and protecting the legal and historical status of holy sites.
The plan notes that if there is political will, the reconstruction of Gaza as proposed is possible.
Middle East
Iran resumes ballistic missile assembly using stockpiled parts
Iran has resumed ballistic missile production in underground facilities, despite statements by Israeli and US authorities asserting that this capacity had been completely eliminated.
According to a report by The Wall Street Journal citing US and Middle Eastern officials, the Tehran administration is utilizing pre-stockpiled components in the manufacturing process.
Officials report that despite strikes on missile sites and industrial installations at the beginning of the war, Iran continues the assembly of both solid- and liquid-fuelled missiles.
Intelligence data indicates activity at numerous underground centres, including the Khojir complex in the southeast of the country, along with efforts to establish additional underground assembly points to protect against new air strikes.
Current assembly operations are being maintained at lower volumes compared with pre-war levels, as US and Israeli operations destroyed several facilities and a naval blockade has impeded the import of components and solid-fuel ingredients.
Assessing the process, Tal Inbar, a senior analyst at the US-based Missile Defense Advocacy Alliance, stressed that damaged infrastructure can be repaired during periods when facilities are not targeted, and parts procured from other countries can be stored there.
Inbar noted that it would be naive to believe Iran is not rebuilding its missile production capacity.
Arguing that the facilities were destroyed and Tehran has suffered severe losses, the official stated that Iran remains weaker than ever before, and US President Donald Trump will never permit the country to acquire nuclear weapons.
Pentagon spokesman Sean Parnell stated that the US has destroyed up to 90% of Iran’s drone, ballistic missile, and naval industrial infrastructure, severely degrading Tehran’s ability to launch missiles and unmanned aerial vehicles.
Another US government official pointed out that the Tehran administration may have revived production, albeit on a low scale, following preliminary talks conducted in mid-June with the Trump administration regarding the opening of the Strait of Hormuz and ending the war. The official noted that existing stockpiles are sufficient to assemble at least two hundred missiles.
A CNN report in late May indicated that the Tehran administration was attempting to reopen underground missile shelters, struck by the US and Israel with costly munitions, using bulldozers and dump trucks.
Excavation activities accelerated after the April ceasefire decision; out of 69 tunnel entrances struck across 18 distinct locations, 50 have been made accessible again.
Experts stressed that it is impossible to destroy missile power solely by bombing tunnel entrances, underlining the limitations of such bombardments.
US Secretary of War Pete Hegseth claimed in April that they had effectively ended Iran’s missile programme. However, an NBC News report noted that Tehran utilized the ceasefire period to reconstitute its military strength.
Middle East
Mohammed bin Salman urges Trump to strike Houthis after Mokha falls
Saudi Crown Prince Mohammed bin Salman has requested that US President Donald Trump launch air strikes against the Houthis in Yemen.
According to two US officials who spoke to Axios, Trump rejected the request, and US officials emphasised that the administration has no plans for direct intervention against the Houthis for now.
Oil prices surged on Thursday after the resistance led by Houthi militias (Ansarallah) seized the strategic coastal city of Mokha in Yemen.
This development brought the Yemeni resistance one step closer to the Bab el-Mandeb Strait, which is vital for global trade and Saudi oil exports.
With Iran already disrupting traffic in the Strait of Hormuz, Houthi control over Bab el-Mandeb could provide Tehran with powerful new leverage over the US and its Gulf allies.
On Thursday, as Houthi forces advanced towards the coastal city of Mokha and Saudi-backed Yemeni forces retreated, bin Salman telephoned Trump to brief him on the deteriorating situation.
A few hours later, the prince called again to request that Trump carry out US air strikes against the Houthis.
Trump declined, but a US official stated that the administration would provide Saudi Arabia with intelligence and targeting data on the Houthis.
The official noted that approximately 200 US military personnel are currently stationed in Saudi Arabia, providing non-military support.
A senior Trump administration official indicated that Washington’s priority is keeping the Red Sea open, while leaving the broader fight to regional partners.
“We are in continuous dialogue with Saudi Arabia and the Government of the Republic of Yemen regarding regional stability,” the official said.
The official continued:
“The US remains focused on protecting our core national security interests, such as ensuring freedom of navigation in the Red Sea, while empowering our regional partners to take the lead in managing and resolving regional security challenges.”
The US is concerned by the rapidly escalating conflict in Yemen and is seeking to avoid direct military intervention while increasing its support for Saudi Arabia.
According to two sources familiar with the matter, Admiral Brad Cooper, Commander of US Central Command (CENTCOM), travelled to Saudi Arabia on Thursday for urgent coordination meetings.
The conflict between Saudi Arabia and Yemeni resistance forces reignited in July after Riyadh blocked an Iranian aircraft carrying senior Houthi officials from landing in Sanaa following their return from Ali Khamenei’s funeral.
Bin Salman requested Trump’s political support to strike Sanaa airport, but made clear that Saudi Arabia did not require US military assistance. Trump granted his support.
The Houthis subsequently retaliated by attacking Saudi tankers in the Red Sea. These strikes threatened a route crucial to the kingdom’s oil exports, and the group later expanded its attacks to Saudi energy facilities.
Saudi Arabia and its Yemeni allies responded with air strikes and ground operations against Houthi positions.
Saudi Arabia’s request for direct US military intervention marks a sharp reversal from July, when Riyadh informed Washington that it could manage the Houthis on its own.
As clashes intensified, the Saudis began seeking progressively greater support from the US.
Sources close to the discussions noted that in recent weeks, US military and civilian officials informed their Saudi counterparts that Trump’s directive is to keep American forces focused on Iran and the Strait of Hormuz, and to avoid opening a new front.
Middle East
Netanyahu ignored MBZ warning on Hamas 7 October plan, report says
Israeli Prime Minister Benjamin Netanyahu reportedly ignored a direct warning from UAE President Sheikh Mohamed bin Zayed Al Nahyan in the run-up to 7 October 2023, according to an investigation by the Israeli newspaper Haaretz.
The report states that the UAE leader, widely known as MBZ, was convinced in September 2023 that an explosion was imminent in the region, particularly given the escalating tensions in the West Bank.
Israeli President Isaac Herzog, who maintains close ties with bin Zayed, recounted: “In the months leading up to the war, he spoke with me about this issue frequently. He consistently conveyed the message that the situation needed to be de-escalated. He even dispatched a special envoy to Israel who met with the prime minister. The emir appeared to sense that the region was on the verge of erupting.”
MBZ also engaged in direct discussions with Netanyahu. These exchanges followed a standard operational protocol: a representative from the United Arab Emirates embassy would arrive at the prime minister’s office equipped with a specialised, secure telephone device to ensure confidentiality.
However, according to the newspaper, the call initiated by bin Zayed on this occasion was extraordinary in nature.
A week and a half before 7 October 2023, the UAE ruler placed a call to Netanyahu from the Presidential Palace in Abu Dhabi, and the two leaders spoke for 45 minutes.
During this conversation, bin Zayed warned that Yahya Sinwar, the Hamas leader in Gaza, was planning a major operation against Israel.
Bin Zayed voiced deep concern that such an event would not only lead to significant bloodshed, but would also destabilise the entire region and undermine the Abraham Accords.
Haaretz reported that three senior foreign sources possess direct knowledge of the call’s contents, marking the first public disclosure of the conversation’s existence.
A close Palestinian adviser to bin Zayed, who had emigrated from Gaza to Abu Dhabi years earlier and maintained extensive connections across the Gaza Strip, was also present during the exchange.
According to the adviser, the UAE ruler stressed to Netanyahu that Israel needed to prepare for this specific threat.
The adviser stated:
“The emir explained that, according to his assessment, Sinwar was preparing for a major event. He told Netanyahu that Israel had to be prepared. At the same time, he proposed working towards an economic solution for the Gaza Strip to prevent escalation, alongside calming the situation in the West Bank.”
Bin Zayed urged Netanyahu to take the matter seriously. Yet, to the emir’s surprise, the prime minister reacted with relative calm.
Netanyahu told bin Zayed that, in his own assessment, Hamas was planning to operate in the West Bank area. Reassuring the Emirati leader, Netanyahu insisted that Israel was prepared for any scenario.
The UAE leader later recounted his conversation with Netanyahu and his subsequent warning to CIA Director William J. Burns.
Bin Zayed shared with Burns the intuitive alarm he had sought to convey to Netanyahu—that “something over there is about to blow”—and noted the Israeli prime minister’s conviction that the unstable theatre was in fact the West Bank.
“The emir hoped that, despite Netanyahu’s reserved reaction, he would take the message seriously and take action,” the adviser said.
However, neither anticipated that the prime minister would hear the warning without briefing the heads of his defence and security establishments: neither the director of the Shin Bet, nor the director of the Mossad, nor the chief of staff of the Israel Defence Forces was informed of MBZ’s warning.
Haaretz noted that Gaza-related negotiations between Israel and Hamas had been proceeding smoothly in early 2023, providing the context in which the Emirati ruler’s concerns emerged.
The report received swift corroboration from the Israeli political opposition. Former prime minister and leader of the B’Yachad party, Naftali Bennett, stated that he knew the warning issued by UAE leader Mohamed bin Zayed to Netanyahu concerning Hamas’s plans prior to 7 October was genuine.
Speaking to 103FM, Bennett said: “I am telling you: I know this to be true.”
Bennett continued:
“Mohamed bin Zayed of the UAE warned Netanyahu that Sinwar was planning an operation. The head of the Egyptian General Intelligence Directorate, Abbas Kamel, also notified Netanyahu a few days before the massacre that a major operation was being planned. I do not wish to discuss my sources with anyone. I am telling you: I know this fact to be true.”
Contending that Netanyahu had led Israel “blindly into this horrific disaster,” the opposition figure asserted: “He was so deeply captive to the conception that Hamas was an asset that, despite receiving explicit warnings, he did nothing.”
Bennett maintained that Netanyahu bears direct responsibility for 7 October, not merely by virtue of being prime minister, but because “he spent 15 years strengthening Hamas and doing nothing.”
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