Washington’s ‘new Gaza’ project meets Gulf pushback
The Cradle, November 2, 2025 —
Trump’s Gaza reconstruction plan envisions rebuilding only within areas under Israeli control in the strip.
Saudi Arabia and the UAE are pushing back against US President Donald Trump’s plan to construct roughly half a dozen residential regions on the eastern half of Gaza, which is currently under Israeli control, The Times of Israel reported on 2 November.
Citing two Arab diplomats familiar with the matter, The Times of Israel said that Trump and his real estate developer son-in-law, Jared Kushner, have proposed the plan to donors in the Gulf to build the “new Gaza” on the eastern side of the strip only, which is now under direct Israeli control.
Following the 11 October ceasefire agreement, Israeli forces withdrew to the east of a “Yellow Line” drawn up during the negotiations to divide Gaza into two parts. Hamas remains in control of the territory to the west of the line.
The partial withdrawal leaves Israeli forces in direct control of at least 53 percent of Gaza.
Trump’s plan to build residential areas in the Israeli-controlled east of Gaza reportedly envisions the Israeli army “gradually withdrawing to the other side of the Gaza border and leaving the Strip altogether,” The Times of Israel wrote.
However, such a withdrawal is conditioned on the establishment of an International Stabilization Force (ISF) for postwar Gaza, and the disarmament of the Hamas.
“With those two conditions for continued Israeli withdrawal so difficult to meet, the US is not waiting to begin the reconstruction process,” The Times of Israel added.
The US wants the international force to deploy to the west of the Yellow Line, the area remaining under Hamas control.
Washington also wants its Arab allies, Saudi Arabia and the UAE, to pay for the force.
However, the diplomats stated that the wealthy Gulf states are pushing back on the plan, as are Indonesia, Azerbaijan, Turkiye, and Egypt, who are expected to provide troops.
These nations are reluctant to assist Washington without a clear UN mandate or agreement with Hamas to hand over its weapons, the two Arab diplomats said. They also want to first deploy their forces on the east of the line to replace Israeli troops.
This information aligns with a previous Israel Hayom report, which revealed that Saudi Arabia, Bahrain, and the UAE had warned the US administration that they would not take part in Gaza’s reconstruction unless Washington enforced the ceasefire terms on Hamas and ensured the group’s disarmament.
Israel is also backing four militias as part of a project to oust Hamas and create a “new Gaza,” according to a report released by Sky News on 25 October.
These armed groups – which throughout the war have been engaged in hostilities against Hamas on behalf of Israel – are currently operating along the Yellow Line of Washington’s ceasefire map, in Israeli-held territory.
Jared Kushner stated he wishes to begin building on the Israeli side of the Yellow Line, in particular on the ruins of the destroyed city of Rafah in the south of the strip on the Egyptian border.
“The US proposal envisions as many as one million Palestinians — around half of Gaza’s population — moving to the residential areas on the Israel-held side of the Yellow Line,” The Times of Israel stated.
Kushner plans to complete the construction of these areas within two years, even if Israeli forces have not withdrawn by then, the two diplomats briefed on the plan stated. Both Arab diplomats concluded the timeline was “highly unrealistic.”
“Palestinians may not want to live under the rule of Hamas, but the idea that they’ll be willing to move to live under Israeli occupation and be under control of the party they also see as responsible for killing 70,000 of their brethren is fantastical,” one of the Arab diplomats said.
Additionally, there is no guarantee Palestinians would be allowed to return and live in the new housing developments. If Israeli forces remain in control of the area, Tel Aviv could decide to house Jewish Israeli settlers in the newly built neighborhoods instead, leaving Palestinians to languish in tents on the other side of the line.
One diplomat stated the Trump White House plans to sponsor a UN Security Council resolution to establish the international security force later this month, possibly before Saudi Crown Prince Mohammed bin Salman visits the White House for talks on the future of Gaza on 18 November.
Kushner and Vice President JD Vance previously stated the US and Israel are considering a plan to divide Gaza into separate zones, one controlled by Israel and one by Hamas, with reconstruction only taking place on the Israeli side until Hamas is disarmed and dissolved.
Vance and Kushner summarized the plan during a press conference in Israel on 22 October, explaining that no funds for reconstruction would go to areas that remain under Hamas’s control.
“There are considerations happening now in the area that the [Israeli army] controls, as long as that can be secured, to start the construction as a new Gaza in order to give the Palestinians living in Gaza a place to go, a place to get jobs, a place to live,” Kushner said.
Kushner is seeking to “create an environment that would be safe for the billions of dollars in investment needed to rebuild,” the Wall Street Journal (WSJ) commented.
“White House officials said Kushner is the driving force behind the split-reconstruction plan, having devised it alongside special envoy Steve Witkoff,” the WSJ said.
The financial newspaper added that with time, Israel could take more territory in Gaza from Hamas, and try to replicate what it has done in the occupied West Bank, with Israel taking complete security control while “forcing Gazans into small, unconnected areas of control.”
“Gaza has represented the only patch of territorial contiguity for a Palestinian state,” explained Tahani Mustafa, a fellow with the European Council on Foreign Relations.
“A plan like this could end up creating what Palestinians feared.”