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Egypt is advancing a two-stage plan for the Gaza Strip, which it aims to present to U.S. President Donald Trump after gaining approval at upcoming summits in Riyadh and Cairo, the Qatari newspaper The New Arab reported Thursday, citing Egyptian diplomatic sources in Washington and Arab League officials.
The Egyptian initiative is reportedly designed as a practical alternative to Trump's controversial proposal, which includes the relocation of Gaza’s 2 million residents.
An Egyptian diplomat in Washington detailed the first stage of the plan, which is expected to last 10 years and focus on reconstruction, development and infrastructure projects, while preparing for a broader long-term solution to the Palestinian issue. The plan envisions a redistribution of residential areas, reducing population density in northern Gaza and establishing low-population "safe zones" near Israeli border communities.
The proposal also includes restrictions on Palestinian armed factions, aiming to monitor but not completely disarm them. According to sources, Egypt proposes designated weapons storage sites in Gaza, to be overseen by European and Egyptian monitors.
To manage local security and governance disputes, Egypt intends to establish an Arab-led committee, which would function as an extension of the existing Egyptian-Qatari committee overseeing the return of displaced Gazans to the north.
Additionally, the continued operation of an American security firm currently active in the area is envisioned, though limited to three key contact points between Gaza and Israel.
The second stage of the plan would move toward establishing a Palestinian state, with discussions on connecting Gaza, the West Bank and Jerusalem.
According to an Arab diplomat, a Gulf state recently consulted Israeli and American officials about the plan, expressing concern that Egypt's refusal to encourage Gaza’s depopulation could entrench armed resistance and jeopardize long-term investment efforts.
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Israeli officials have also reportedly voiced opposition to the plan’s exclusion of Israeli oversight in Gaza's reconstruction, fearing it could facilitate a resurgence of Hamas’ military strength.
Sources cited by The New Arab said the primary obstacle to implementing the Egyptian plan is Israel’s insistence on supervising Gaza’s reconstruction, amid security concerns. Egypt’s plan reportedly calls for construction materials to enter Gaza through Rafah instead of Kerem Shalom, with Egyptian firms playing a central role in rebuilding efforts.
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To push the plan forward, Egypt is seeking Arab backing to pressure the U.S. into influencing Israel's position. Discussions on the matter are expected to take place at the Riyadh summit on Friday, while Egyptian President Abdel Fattah el-Sisi has reportedly raised the issue in talks with Western and Arab leaders.
Meanwhile, reports indicate that Arab states are developing a $20 billion counterproposal to Trump’s Gaza evacuation plan.
At a recent investment conference in Miami, Trump's Middle East envoy Steve Witkoff defended Trump’s plan, clarifying that the relocation of Gaza’s residents was meant to provoke discussion rather than promote forced displacement. He added that Gaza's reconstruction would require a complete redesign and could take more than five years.
Arab leaders are expected to present their own alternative framework at a Cairo summit in early March, offering an investment-driven approach to stabilizing and rebuilding Gaza.