European nations including France, Germany, Italy, and Britain have backed a $53 billion Arab-led proposal to rebuild Gaza while preventing Palestinian displacement. The plan, created by Egypt and approved by the Arab League and the Organization of Islamic Cooperation (OIC), aims to reconstruct the war-torn enclave under the Palestinian Authority’s governance.
The initiative counters U.S. President Donald Trump’s controversial suggestion to turn Gaza into a resort area and relocate its residents. Arab and Muslim-majority countries unanimously rejected Trump’s idea, urging global support for their alternative. A trust fund has been established to finance Gaza’s recovery, with calls for contributions from the EU, China, Japan, and others.
However, the plan faces hurdles. It excludes Hamas, the group governing Gaza, drawing criticism from the U.S. and Israel. While a U.S. envoy called the proposal a “good-faith first step,” Washington insists it falls short of expectations. Israel opposes any plan involving the Palestinian Authority without security guarantees.
Separately, the OIC readmitted Syria after suspending it in 2012 during its civil war, signaling a step toward Syria’s return to the international community.
The reconstruction effort highlights regional efforts to address Gaza’s humanitarian crisis while navigating political divisions. With infrastructure in ruins and over 48,000 Palestinians killed since October, the plan’s success depends on securing global funding and balancing governance disputes. Meanwhile, the push reflects broader resistance to unilateral U.S. policies, uniting Arab and European leaders in support of a collective approach to peace and recovery.