Arab states may commit $20b for Gaza reconstruction

Egypt has postponed an emergency Arab summit to counter US President Donald Trump's proposal to remove the Palestinian population from the Gaza Strip and take over the territory.

Egypt's Foreign Ministry said in a statement on Tuesday that the summit would be held in Cairo on March 4 allow for further "logistical and objective preparations."

The summit, which had been scheduled for Feb. 27, came after Trump's proposal sent shockwaves across the region.

Palestinians and Arab countries have universally rejected any displacement of the territory's population. Israel has welcomed the proposal, which human rights groups said could amount to forced displacement in violation of international law.

Hamas on Tuesday said it will release the last six living Israeli hostages under the first phase of a ceasefire agreement.

Egypt's President Abdel Fattah Al Sisi is expected to travel to Riyadh on Thursday, two Egyptian security sources said, where he is due to discuss an Arab plan for Gaza that may include up to $20 billion from the region for reconstruction.

Arab states are expected to discuss a post-war plan for Gaza.

Saudi Arabia, Egypt, Jordan, the UAE and Qatar are set to review and discuss the Arab plan in Riyadh before it is presented at a scheduled Arab summit on March 4, four sources with knowledge of the matter said.

On Friday, a gathering of Arab state leaders, including Jordan, Egypt, the UAE and Qatar, was expected in Saudi Arabia, which is spearheading Arab efforts on Trump's plan, although some sources said the date had not been confirmed yet.

Arab states were dismayed by Trump's plan to "clean out" Palestinians from Gaza and resettle most of them in Jordan and Egypt, to create a Middle East Riviera.

The idea was immediately rejected by Cairo and Amman and seen in most of the region as deeply destabilising.

The Arab proposal, mostly based on an Egyptian plan, involves forming a national Palestinian committee to govern Gaza without Hamas involvement and international participation in reconstruction without displacing Palestinians abroad.

A $20 billion contribution from Arab and Gulf states towards the fund, cited by two sources as being a likely figure.

The Palestinian Authority's cabinet said in a statement on Tuesday that the first phase of the plan under discussion would cost approximately $20 billion over three years.

Egyptian sources told reporters discussions are still under way as to the size of the financial contribution by the region.

The plan sees reconstruction taking place over a three-year timeframe, sources said.

"My conversations with Arab leaders, most recently King Abdullah, have convinced me they have a really realistic appraisal of what their role should be," Senator Richard Blumenthal told reporters in Tel Aviv during a visit to Israel on Monday.

Israeli foreign minister Gideon Saar said Israel was waiting to evaluate the plan as it comes together but warned that any plan in which Hamas continued to have presence in Gaza was not acceptable.

"When we hear it we will know how to address it," he said.

Qatar, a key mediator in the Gaza conflict, said on Tuesday that Palestinians — not outsiders — must decide the territory's future after the Israel-Hamas war.

Foreign ministry spokesman Majed Al Ansari told a Doha news conference that the issue was "a Palestinian question", after Israel insisted on removing Hamas and the United States proposed taking over the territory.

"From our perspective, this is a Palestinian question on what happens post this conflict," said Ansari when asked about Israel's stated objective to eliminate Hamas.

"It is a Palestinian question on who represents the Palestinians in an official capacity and also the political groups and parties in the political sphere," he said.

Israeli Foreign Minister Gideon Saar said earlier Tuesday that negotiations for the next phase of the Gaza ceasefire, which Qatar helped broker, would begin this week.

The second phase of the truce is meant to facilitate the release of all remaining hostages seized during Hamas's October 7, 2023 attack that sparked the war, and lead to a permanent end to the fighting.

Saar said Israel demanded the "complete demilitarisation of Gaza" and would "not accept the continued presence of Hamas or any other armed groups" in the territory.

Trump's proposal has added strains to the fragile Gaza ceasefire, which has largely halted the violence since it took effect on January 19, after more than 15 months of war.

The ongoing first phase of the truce, which is set to expire on March 1, has so far seen the release of 19 Israeli hostages in exchange for more than 1,100 Palestinians in Israeli custody.

More hostage-prisoner exchanges are expected before the end of the first phase, which has also allowed humanitarian aid into besieged Gaza.

Hamas however has accused Israel of blocking the entry of prefabricated structures and heavy machinery to clear rubble.

Ansari, the Qatari spokesman, said that "the aid the enters the Gaza Strip today is insufficient".

"Using humanitarian aid as a bargaining chip in negotiations is a crime in and of itself."

Agencies