Israel has criticized a reconstruction plan for Gaza put forward by Arab states during a summit in Cairo, arguing that it fails to address key realities following the October 7 attack by Hamas. Meanwhile, Hamas welcomed the initiative and called for its successful implementation.

The Israeli Foreign Ministry stated that the plan does not mention Hamas' attack, which resulted in thousands of Israeli deaths and kidnappings, nor does it condemn the group. In contrast, Hamas described the summit as a "step forward" for Arab and Islamic support for Palestine, urging Arab leaders to ensure Israel abides by its ceasefire agreement.

During the summit, Arab leaders adopted Egypt’s proposal for Gaza’s reconstruction, estimated to cost $53 billion, with a commitment to avoid displacing Palestinians. In contrast, Israel reiterated its support for a plan endorsed by former U.S. President Donald Trump, which proposes relocating Palestinians to Jordan and Egypt—an idea rejected by Arab states.

Israel further criticized the reliance on the Palestinian Authority (PA) and the United Nations Relief and Works Agency (UNRWA), arguing that both have a history of corruption and support for terrorism. The Arab statement, however, condemned Israel’s recent decision to block aid to Gaza and reaffirmed UNRWA’s critical role in both Gaza and the West Bank.

Egyptian President Abdel Fattah al-Sisi, in his closing remarks at the summit, expressed confidence in Trump’s ability to achieve peace in the region. The key unresolved issues include who will govern Gaza and how the massive reconstruction efforts will be financed.

Sisi announced that Egypt, in coordination with Palestinians, had developed an interim administrative committee composed of independent Palestinian technocrats. This committee would oversee humanitarian aid and manage Gaza’s affairs temporarily before returning governance to the PA.

Hamas, which has governed Gaza since 2007, supported the proposal but stated that it must approve the committee’s composition, agenda, and responsibilities, even though it would not directly participate. Egyptian Foreign Minister Badr Abdelatty confirmed that the committee members had already been selected.

Palestinian President Mahmoud Abbas welcomed the initiative and urged Trump to support a reconstruction plan that does not involve the displacement of Palestinians. Abbas also expressed willingness to hold presidential and parliamentary elections, reaffirming that the PA remains the only legitimate governing authority in Palestinian territories. Hamas responded positively to the call for elections.

One of the major obstacles remains Hamas’ continued presence in Gaza. While the UAE and Saudi Arabia are expected to play a significant role in funding reconstruction, their support hinges on Hamas' future role. The UAE demands Hamas' complete disarmament, while other Arab nations prefer a gradual approach.

Saudi Arabia is also hesitant to endorse the plan without Hamas’ military disarmament, citing concerns raised by both Israel and the United States. Saudi Foreign Minister Prince Faisal bin Farhan stressed the need for international guarantees ensuring that the current ceasefire remains in place and backed the PA’s role in governing Gaza.

Senior Hamas official Sami Abu Zuhri dismissed Israeli and U.S. demands for the group to disarm, asserting that Hamas’ right to armed resistance is non-negotiable. He also rejected any attempts to impose external administration over Gaza. Since taking control of Gaza in 2007, Hamas has eliminated internal opposition within the enclave.

Egypt, Jordan, and Gulf Arab states have been working on an alternative to Trump’s proposal, which calls for Palestinian relocation and a U.S.-led reconstruction effort—an approach they believe would destabilize the region. The Cairo summit's final communique explicitly rejected any mass displacement of Palestinians.

Egypt’s 112-page reconstruction plan includes detailed maps and AI-generated images depicting future housing, community centers, a commercial harbor, a technology hub, hotels, and an airport.

While Israel may not oppose an Arab-led governance structure for Gaza, it insists that Hamas must be completely dismantled. An Israeli official stated that the war's objective has always been to destroy Hamas' military and governing capabilities, and any effort to demilitarize Hamas must be immediate.

According to Palestinian health officials, the ongoing war has resulted in over 48,000 deaths. Israeli sources claim that around 20,000 Hamas fighters have been killed and that the group has been severely weakened militarily.

The White House National Security Council has yet to comment on the outcome of the Arab summit.