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Gaza reconstruction plan: $53 billion needed, Palestinian Authority to govern

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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

Israeli envoy warns red line crossed over Turkish moves in Syria

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Israel’s Ambassador to the US, Yechiel Leiter, stated that Tel Aviv received clear intelligence showing Türkiye planned to expand its military presence in Syria significantly, an action Israel deemed the crossing of a “red line.”

Speaking to The Jerusalem Post, Leiter said: “We are not looking for an escalation or a war with either Türkiye or Syria. But a red line was crossed.”

His remarks follow an Israeli air strike on the Abu al-Duhur Airbase in Idlib, Syria, which drew swift criticism from both the Syrian and Turkish governments.

Leiter continued:

“This was seen as a blatant Turkish violation of the understandings. Those who needed access to the intelligence received it. Those who needed to know what was going to happen knew. We made it clear that this was contrary to our understandings, and that is why Israel acted as it did.”

According to Leiter, the failure to heed these warnings led Israel on Tuesday to strike the Abu al-Duhur airbase, where Turkish forces were allegedly expected to arrive.

Syrian officials stated that the airbase was targeted by at least eight strikes, whilst subsequently released satellite imagery revealed damage to the runways.

Leiter stated that the Turkish move contradicted understandings reached during the Biden administration between Israel and the administration of Syria’s new leader, Ahmed al-Sharaa, which “froze the existing situation” in the country.

According to Leiter, these understandings were reaffirmed during a meeting held in Paris in January 2026, attended by Syrian Foreign Minister Asaad al-Shaibani, US Special Envoy for Syria Tom Barrack, Leiter, then-National Security Council head Gil Reich, and Netanyahu’s military secretary Roman Gofman (now director of Mossad).

Leiter continued:

“This freeze means we do not act as long as the Turks do not act, and they do not force us to withdraw. It is also important to understand: whilst we maintain a security zone of only 78 square miles [approximately 202 square kilometres] in Syria, the Turks have, over the past few years, slowly annexed 3,500 square miles in northern Syria—roughly 5% of the country’s territory.”

According to The Jerusalem Post, with the exception of Tom Barrack, the US Special Envoy for Syria and Ambassador to Türkiye, senior US officials did not condemn the Israeli strike in Syria.

“The administration’s policy is that the previously agreed freeze should continue; that is why even Trump did not condemn the strike,” Leiter said.

Despite the tensions, Leiter emphasised Israel’s understanding that Syria is not seeking an escalation or war.

“It is clear to us that the Syrians do not want a confrontation with us. That is why we tell the Turks not to create conflict. There are multiple indications that the move planned by Türkiye was imposed on the Syrians,” the ambassador said.

Leiter argued that this apparent discord was also evident in the conflicting statements issued by Türkiye and Syria following the strike:

“Whilst Syrian Foreign Minister Shaibani acknowledged that a Turkish delegation was in Syria a few days before the strike, the Turks denied this. They need to resolve this matter between themselves.”

Leiter did not rule out a return to direct talks with Syria, as conducted in the past, but said conditions must be suitable.

“Negotiations can be resumed. We want to continue the face-to-face dialogue we previously conducted with the Syrians,” Leiter said.

Leiter added that Israel is not seeking a conflict with Türkiye and remains open to dialogue with Ankara.

“We are certainly open to dialogue with them, but judging by statements from senior officials in the country, they would prefer to wipe Israel off the map,” the Israeli diplomat said.

Alleging that Türkiye hosts Hamas leaders and “channels funds” to Hezbollah and Hamas, Leiter argued that it was inappropriate at this juncture for “Türkiye to begin expanding its influence in Lebanon and Syria.”

Leiter continued:

“Under current conditions, Türkiye cannot be a force that helps bring calm to the region. If only we could return to the state of relations between Jerusalem and Ankara from several decades ago. Back then, we would have been open to Türkiye’s influence in the region. But in an environment where Türkiye funds terrorist organisations, an increase in its regional influence makes no sense.”

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UAE halts trade with Iran after reported ballistic missile attack

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The United Arab Emirates (UAE) has suspended commercial and economic relations with Iran after announcing that Tehran launched two ballistic missiles towards the Gulf state on Tuesday.

The UAE Ministry of Defence stated that air defence systems detected two ballistic missiles launched from Iran towards its territory.

The incident is considered Tehran’s first direct attack targeting the Gulf country since May.

The event prompted emergency telephone alerts to be sent to residents across the UAE.

The Ministry of Defence stated that assessments indicated the missiles targeted maritime traffic, adding that one missile fell into the sea outside UAE territorial waters and the other landed within territorial waters.

The UAE Ministry of Foreign Affairs later announced that “in light of regional tensions that undermine regional and international peace and security, all trade, commercial relations, and financial transactions with Iran have been halted until further notice.”

Iran denied any involvement in the missile attacks. Iranian Foreign Ministry Spokesperson Esmail Baghaei said the claim “contradicts the principle of good neighbourliness and undermines ongoing efforts to strengthen trust among regional countries.”

The missile strikes occurred after a period in which the UAE and Tehran had sought to reduce tensions between the two countries.

The bulk of Tehran’s military retaliation targeted neighbouring Gulf states, which Iran accused of facilitating US-Israeli attacks.

The UAE bore the heaviest brunt of Iran’s attacks against US allies in the Gulf, sustaining nearly 3,000 missile and drone strikes.

Exhibiting the most hawkish stance against Tehran among its Gulf neighbours, the UAE responded with dozens of strikes against Iran.

However, tensions between the UAE and Iran eased following a memorandum of understanding signed between Washington and Tehran in June.

After the agreement began to unravel in early July, Iran largely redirected its attacks towards Bahrain, Kuwait, and Jordan.

In recent months, the UAE reactivated diplomatic and economic channels with Iran while simultaneously strengthening its military ties with Israel and the US.

Tuesday’s missile strikes threaten to disrupt the atmosphere of normalisation that had returned to the UAE.

While Dubai’s financial district was once again filling with bankers, certain commercial activities between the emirate and Iranian ports had resumed.

Furthermore, several Iranian flights to the UAE had quietly resumed.

UAE authorities had also begun permitting the return of approximately 20,000 Iranians holding UAE residency permits who were outside the country when the war began.

UAE officials have repeatedly emphasised that the country seeks to avoid being drawn further into a broader regional war.

Nevertheless, efforts to de-escalate tensions between the UAE and Iran have come under increasing strain in recent weeks.

This month, the UAE accused Iran of attacking vessels belonging to the Abu Dhabi National Oil Company in the Strait of Hormuz.

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US considers land blockade on Iran involving Türkiye and neighbours

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To date, the US has imposed sanctions on thousands of Iranian individuals and legal entities; however, the Tehran administration continues to bypass these restrictions by rapidly establishing new structures to replace those that have been blocked.

In an assessment citing expert opinions published by the Reuters news agency, the current situation was likened to a game of whack-a-mole.

Whack-a-mole is known as a game of agility and reflexes based on the concept of hitting plastic figures with a mallet as they pop up unexpectedly from their holes.

Speaking to the agency, experts outlined other options that Washington could deploy to increase pressure on Tehran and raise the efficacy of sanctions.

Potential measures include restrictions targeting independent Chinese refineries, known as “teapots,” which account for a quarter of China’s oil refining capacity.

China purchases more than 80% of the oil exported by Iran, and these refineries process the vast majority of those shipments. Nevertheless, these facilities have limited ties to the US financial system, rendering them partially protected against secondary sanctions.

Another option on the table is increasing pressure on major Chinese banks. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has applied secondary sanctions to small firms based in China and Hong Kong accused of executing billions of dollars in transactions for Iranian oil.

The agency has also warned two large banks, though it has not yet included them on its sanctions list.

While taking steps against major banks could deter other financial institutions, such actions carry the risk of Beijing enacting retaliatory measures. Washington seeks to avoid such tension ahead of a potential meeting between US President Donald Trump and Xi Jinping in September.

Experts are also evaluating the possibility of enforcing a land blockade with the participation of Iran’s neighbours: Iraq, Türkiye, Pakistan, Azerbaijan, Turkmenistan, and Armenia.

The Trump administration holds various leverage mechanisms against such nations, including Pakistan, which is requesting a $10 billion swap line, and Türkiye, which seeks to rejoin the F-35 program. Analysts express, however, that implementing such a blockade on the ground and generating the expected pressure inside Iran would be difficult.

Trump has repeatedly voiced threats to impose secondary tariffs on countries that trade with Iran; however, the US Supreme Court struck down the legal basis for such measures.

On the other hand, a anti-Russia “crushing” sanctions bill passed by the Senate includes new restrictions on Iran and grants Trump tariff authority.

This bill must also pass a vote in the House of Representatives; however, the text faces opposition from both Democrats and certain Republican lawmakers.

US Treasury Secretary Scott Bessent announced in mid-August that Trump would disclose new measures designed to raise Iran’s economic isolation to an unprecedented level.

Stating that the US President had instructed the re-establishment of the maximum economic pressure policy against Tehran, Bessent said, “We have moved from Epic Fury to Economic Fury.”

Following Bessent’s statements, Bloomberg noted that Tehran has learned to manage the consequences of a naval blockade and thousands of restrictions. According to the agency’s analysts, the principal obstacle facing Washington is the close economic relationship between Iran and China; indeed, Beijing secures more than 90% of Iranian oil exports. Sanctioning the entities facilitating these purchases would directly reduce Tehran’s oil revenues, yet the US is avoiding this step for now.

Maritime traffic in the Strait of Hormuz remains restricted. On August 11, Iran conveyed its conditions for lifting the blockade in the strait to the US through intermediaries.

Tehran’s conditions included an end to threats and military actions, the lifting of the blockade and sanctions, compensation for damages, and the release of frozen assets.

On August 14, Trump claimed that following the end of the war with Iran, he would declare the Strait of Hormuz to be US territory. Responding to these statements, the Iranian Foreign Ministry warned that the Strait of Hormuz could not be seized “by a tweet, an aircraft carrier, an executive order, or a campaign speech.”

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