Arab leaders gathered in Cairo for an urgent summit to discuss the future of Gaza, particularly its reconstruction in the wake of recent conflicts. Central to the discussions was a substantial $53 billion Egyptian proposal aimed at rebuilding the enclave, a plan presented as a counterpoint to President Trump's controversial Gaza plan. Egypt's initiative gained momentum following President Trump's suggestion of resettling Gazans outside the territory, a concept Egypt has firmly rejected due to national security concerns.

The Egyptian blueprint, projected to span over four years, is structured in two phases. The initial two-year phase earmarks approximately $20 billion for reconstruction, while the subsequent two-and-a-half-year phase allocates $30 billion, primarily for rebuilding residential zones. A core difference between the Egyptian and Trump proposals is the former's emphasis on keeping Gaza's residents within the territory and prioritizing Palestinian-led reconstruction, with collaboration between the Palestinian Authority, Egypt, and Jordan to train a Gazan police force.

However, significant obstacles remain. Hamas has rejected the Egyptian plan, and the Palestinian Authority has stated it won't participate in reconstruction while Hamas remains in control. Funding from key Gulf states is contingent on Hamas's removal and a path towards a Palestinian state. Furthermore, there are concerns about potential corruption within the Egyptian power structure hindering effective management of the substantial funds.

While Egyptian construction firms are reportedly ready to commence work, the primary hurdles are political, including the need for cooperation from Israel and the US. Egypt's leading role in the proposed reconstruction has also caused friction with Gulf states, raising concerns about control and transparency in the process.

Jordan, while playing a diplomatic role, has remained somewhat distanced from the reconstruction debate. The overarching political future of Gaza remains uncertain, with Arab leaders primarily focused on navigating President Trump's stance and potentially dissuading him from the idea of resettling Gazans.