Israel and the United States have rejected an Egyptian plan for Gaza’s reconstruction endorsed by an Arab League summit in Cairo on Tuesday, March 4, while the Hamas terrorist group has welcomed the proposal.

The Israeli Foreign Ministry sharply criticized the statement issued at the Emergency Summit of the Extraordinary Arab Summit, accusing it of ignoring the realities on the ground following Hamas’ brutal attack on Oct. 7, 2023.

“The statement remains rooted in outdated perspectives,” the ministry said, adding that it “fails to mention Hamas’ brutal terrorist attack, which resulted in thousands of Israeli deaths and hundreds of kidnappings.” Israel also condemned the summit for its failure to denounce Hamas explicitly.

The ministry took aim at continued reliance on the Palestinian Authority and the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), organizations it accused of corruption, support for terrorism and failure to resolve the longstanding conflict.

“For 77 years, Arab states have used Palestinians as pawns against Israel, condemning them to eternal ‘refugee’ status,” the statement read.

Israel also referenced recent proposals that could offer Gazans a new future, including ideas promoted by U.S. President Donald Trump. “There is an opportunity for the Gazans to have free choice based on their free will. This should be encouraged!” the ministry stated. Instead, it accused Arab states of rejecting this opportunity outright while continuing to level “baseless accusations” against Israel.

The statement warned that Hamas’s actions have destabilized the region and that leaving the group in power would prevent any chance of lasting security. “For the sake of peace and stability, Hamas can’t be left in power,” the ministry said.

Israel called on regional actors to move beyond past constraints and work together toward a secure and stable future. “We urge regional states to collaborate in creating a future of stability and security in the region,” the statement concluded.

White House: “Uninhabitable Reality Ignored”

The White House said that Cairo’s Gaza reconstruction plan does not address the current harsh realities on the ground.

“The current proposal does not address the reality that Gaza is uninhabitable, and its residents cannot live there humanely when it is covered in rubble and unexploded bombs,” said Brian Hughes, spokesperson for the National Security Council.

Hughes also reaffirmed Trump’s stance on Gaza’s future, stating, “President Trump stands behind his vision to rebuild Gaza without Hamas.” Despite the rejection of the plan, he emphasized that the United States remains open to “continuing talks” on the issue.

The White House’s position underscores what the U.S. administration sees as the critical need for a new approach to rebuilding Gaza, one that reflects the current conditions and ensures the safety and stability of the region.

Trump’s proposal involves resettling Gaza’s residents during the enclave’s reconstruction into a global economic hub.

Israeli Prime Minister Benjamin Netanyahu praised Trump’s Gaza plan on Monday, calling it “visionary and innovative” in a message thanking the president for his support during the Gaza war.

Hamas Welcomes Egyptian Plan

Hamas expressed support on Tuesday for the Egyptian plan, which would establish a committee to oversee rebuilding efforts and governance in the war-torn region.

In a statement, the Palestinian terrorist group said, “We welcome the Gaza reconstruction plan adopted in the summit’s final statement and call for ensuring all necessary resources for its success.” They also voiced their backing for the creation of a “Community Support Committee” which would oversee relief efforts, reconstruction and governance in Gaza, as outlined in the temporary administrative body proposed by the Arab League summit in Cairo.

EU, UN Back the Egyptian Plan

At the Cairo summit, U.N. Secretary-General Antonio Guterres expressed strong support for the Arab-led initiative, stating, “I strongly endorse this plan. The U.N. stands ready to fully cooperate in this endeavor.”

E.U. Council President Antonio Costa also praised the plans presented by Egypt and other Arab states, saying they “give hope to millions of Palestinians in Gaza, the West Bank and abroad” that “the terrible suffering we have all witnessed over the past year and a half” may come to an end.

Arab Leaders Accept Egyptian Plan

Egyptian President Abdel Fattah el-Sissi told the closing session of the summit that the plan presented “has been endorsed,” claiming earlier in the day that “there will be no real peace without establishing a Palestinian state.”

After the summit, el-Sissi expressed his openness to any proposals and ideas from the international community, adding that he looked forward to collaborating with Trump.

Details of the Egyptian Proposal

The 112-page draft document setting out Cairo’s five-year plan to rebuild Gaza at a cost of $53 billion outlines a two-phase approach.

The initial six-month recovery phase will focus on clearing rubble and setting up temporary housing, with an estimated cost of $3 billion.

The first phase of the plan aims to build 200,000 housing units in Gaza over the next two years, followed by a second phase that will add another 200,000 units. By 2030, the plan envisions the construction of hundreds of thousands of new homes, accommodating up to 3 million people. It also includes plans for an airport, industrial zones, hotels and parks.

El-Sissi stated that an “independent” Palestinian body would oversee Gaza’s management under the reconstruction plan, with Palestinian Authority head Mahmoud Abbas expressing his readiness for the P.A. to play a role in the effort.

The plan, reviewed by Reuters, envisions an international Governance Assistance Mission overseeing humanitarian aid and reconstruction efforts in Gaza.

The preamble of the draft stresses that no significant international funding for Gaza’s rehabilitation and reconstruction will be provided as long as Hamas remains the dominant armed political force controlling local governance.

It proposes an International Stabilization Force led by Arab states, funding through donor conferences and Palestinian involvement in rebuilding efforts. The plan excludes Hamas and does not place the P.A. in a central role. Instead, a steering board comprising Arab countries, the Organization of Islamic Cooperation, the United States and the European Union would oversee implementation.