Arab states could contribute $20 billion to the effort, which according to the report would cover the costs of the first three years of reconstruction [Getty]
More than $50 billion will be needed for Gaza to fully recover from the 15 months of bombardment by Israel, according to new estimates by the UN, the EU, and the World Bank.
The Interim Rapid Damage and Needs Assessment (IRDNA), which assessed the damage caused by the war from October 2023 to October 2024, calculated the total cost of reconstruction at $53.2 billion over the next decade, with around $20 billion needed in the first three years.
The researchers determined that Israel’s assault caused $49 billion in physical damage and economic and social losses in the year to October 2024.
More than half the cost of reconstruction – almost $30 billion – will be spent on rebuilding physical infrastructure in the territory, much of which has been razed to the ground by Israeli forces.
Recent UN estimates said that Israel had destroyed or damaged 69 percent of all structures in the enclave.
The IRDNA report put the total number of destroyed housing units at 292,000, equivalent to almost 62 percent of the territory’s total housing stock.
More than $19 billion is required to compensate for the economic and social losses caused by Israel’s destruction of the territory’s healthcare system, schools, commerce, and industry, the report said.
All of Gaza’s schools, almost all its hospitals, and 88 percent of buildings used for commerce and industry have been either completely destroyed or significantly damaged, according to the report.
At the time of writing, the researchers forecasted Gaza’s economy to contract 83 percent in 2024.
“The recovery and reconstruction needs identified in this IRDNA report are vast,” the report states.
“Funding will require a broad coalition of donors, diverse financing instruments, private sector resources, and significant improvements in the delivery of construction materials to Gaza in the post-conflict period.”
Arab states could contribute $20 billion to the effort
The staggering assessment comes as Arab countries race to produce a post-war reconstruction plan and ward off US President Donald Trump’s threats to occupy the territory and expel its 2.2 million inhabitants.
The proposal triggered outrage across the Arab world and was forcefully rejected by Egypt and Jordan, whom Trump has repeatedly called on to absorb displaced Palestinians.
Arab leaders are expected to meet in Saudi Arabia this week to discuss progress on the plan, which is being led by Egypt.
Arab and Gulf states could contribute $20 billion towards the costs of reconstruction, according to sources cited in the international press, though Egyptian officials have said that a final decision about the region’s financial contribution has not been reached.
This sum would cover the costs of the initial three-year period as estimated by the IRDNA report.
The Arab League is expected to convene in Cairo on 4 March to finalise the plan before discussing it with the White House.
Meanwhile, Israel’s far-right government has lauded Trump’s proposal and has begun preparations to encourage the “voluntary” migration of Palestinians from Gaza.
Second phase truce talks still haven’t started
Negotiations for the second phase of the ceasefire are still yet to begin, according to Qatar, which is mediating the talks alongside Egypt and the US.
Israel’s Foreign Minister Gideon Sa’ar said on Tuesday that indirect talks will begin “this week” though it remains unclear exactly when.
The talks were supposed to begin on 4 February but have been delayed by Netanyahu amid demands from some ministers in his government to resume the war when the temporary truce ends in March.
The negotiations for the second phase of the ceasefire are expected to be more difficult than the first stage to implement and aim to release all remaining prisoners, withdraw Israeli troops from the enclave, agree on a post-war Gazan administration, and permanently end the war.
Israel has repeatedly violated the fragile ceasefire by preventing the entry of certain items into Gaza and continuing to target Palestinians.
Israel’s 15-month war on Gaza killed almost 48,300 Palestinians and injured more than 111,700 others.
