Egypt's five-year plan for Gaza reconstruction includes safe zones and independent Palestinian agency


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Details of an Egyptian plan for the reconstruction of Gaza were revealed on Tuesday, with sources involved in the process telling The National that the proposal includes the creation of safe zones within the territory during a five-year rebuilding period.

The plan, designed to counter US President Donald Trump’s proposals for Gaza’s future, is expected to be presented at a summit of the Gulf Cooperation Council (GCC) and other Arab countries on February 20, the sources added.

The initial stages would focus on restoring essential services and temporary housing. Drafted by experts, the plan stipulates that caravans, tents and essential services would be made available inside the safe zones, said the sources, who were briefed on the proposal.

Rakha Hassan, a former Egyptian deputy foreign minister who now sits on the Egyptian Council for Foreign Affairs, a Cairo-based think tank, said several large Egyptian property developers had submitted several proposals to the government on Gaza's reconstruction. He told The National that the Egyptian government also planned to host an international conference to raise money for rebuilding.

The GCC summit will be held in Riyadh on Thursday and attended by Egypt and Jordan, the two Arab nations where Mr Trump wants Gaza's 2.3 million Palestinians to be permanently resettled while the US grabs the territory and turns it into the “riviera of the Middle East”. Separately, Egypt said on Tuesday that an Arab summit that was scheduled for Cairo on February 27 would now take place on March 4.

The summit is primarily designed to build a united opposition to Mr Trump's plan.

The sources held out the possibility that representatives of potential donors might be invited to Thursday's summit in Riyadh, where they would be speaking to the participants on the sidelines of the gathering.

Mr Trump's Gaza proposals have been widely condemned in the Arab world and globally, with some international rights groups renouncing them as ethnic cleansing. Israeli Prime Minister Benjamin Netanyahu, however, has warmly welcomed Mr Trump's plan.

US Secretary of State Marco Rubio, who is in the Middle East this week, has said the US was open to hearing alternative proposals. “If the Arab countries have a better plan, then that’s great,” Mr Rubio said.

The Egyptian plan can only succeed if sufficient funds are raised and the 42-day Gaza ceasefire that went into effect on January 19 is held beyond its expiry early in March and through negotiations on the deal's second phase.

Egypt's government plans to host an international donors' conference to raise funds for rebuilding in Gaza. AP
Egypt's government plans to host an international donors' conference to raise funds for rebuilding in Gaza. AP

If successfully negotiated, the second phase means Hamas will release all hostages it still holds, Israel should withdraw from Gaza and a permanent ceasefire would go into effect.

Israel has repeatedly vowed not to end the war before Hamas's military and governance capabilities are dismantled and all the hostages are freed. Hamas has frequently aired fears that Israel will resume military operations in Gaza when all hostages are released.

The sources said Egyptian government officials have been discussing and fine-tuning the Gaza reconstruction plan with international donors, including the EU, as well as representatives of construction companies and Gulf nations that have stated their initial readiness to contribute funds.

The Egyptian plan envisages the creation of an independent Palestinian agency to co-ordinate and oversee the reconstruction. The West Bank-based Palestinian Authority will have to issue a decree creating the agency but will not be entitled to interfere or influence its work, the sources said.

Members of the agency will be technocrats who enjoy the support of all Palestinian factions.

Separately, Egypt is in the process of selecting a 15-man Palestinian committee to oversee the day-to-day affairs of post-war Gaza, including a limited say in the reconstruction effort, said the sources. The proposed committee will not include representatives of Hamas or the Palestinian Authority and will be aided by local clan chiefs and mayors.

The war in Gaza was started by a Hamas-led attack on southern Israel in October 2023 that killed 1,200 and led to the kidnapping of about 250 others. The attack drew a relentless military response from Israel that has killed more than 48,000 Palestinians and wounded more than twice that many, according to the Gaza Health Ministry. It has also reduced large parts of Gaza's built-up areas to rubble.

“The [amount of] rubble in Gaza isn’t as large as the US and Israel would suggest, and contractors have confirmed that much of it can be recycled in the reconstruction process,” said Mr Hassan, the former Egyptian deputy foreign minister.

Hospitals can be restored quickly, within months, because many of their exteriors are left standing … Gazan labour is going to be essential for the rebuilding plan. Gaza’s population needs to stay there to do the rebuilding themselves.”

Egypt, which administered Gaza between 1948 and 1967, has long viewed the territory as part of its national security sphere. Allowing Gaza's Palestinians to resettle on Egyptian territory, Cairo maintains, will weaken the Palestinian cause. It insists that a two-state solution allowing a Palestinian nation to be created and peacefully exist alongside Israel is the only feasible resolution of the Palestinian-Israeli conflict.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Goalkeeper: Alisson (Liverpool)

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Updated: February 19, 2025, 9:29 AM`