Gaza Reconstruction Costs Estimated at Over $50 Billion
gaza
Rebuilding Gaza after 15 months of conflict between Israel and Hamas will require more than $50 billion, according to a joint assessment by the United Nations, the European Union, and the World Bank.
Extent of Damage and Recovery Needs
The Gaza and West Bank Interim Rapid Damage and Needs Assessment (IRDNA) estimates that Israeli strikes caused $49 billion in damage between October 8, 2023, and October 8, 2024. Over the next decade, $53.2 billion will be required for reconstruction, with $20 billion needed in the first three years alone.
The report highlights that large-scale rebuilding efforts remain on hold due to governance and security uncertainties. It warns that the speed and effectiveness of reconstruction depend on resolving these challenges.
Massive Infrastructure and Economic Losses
- 292,000 homes damaged or destroyed
- 95% of hospitals non-functional
- Local economy contracted by 83%
- $29.9 billion needed for buildings and infrastructure repairs, including $15.2 billion for housing
"The loss of life, widespread destruction, and rapid damage to infrastructure rank among the worst in the Middle East and North Africa region’s history," the report states.
Regional Diplomacy and Displacement Controversy
As Arab nations work on a recovery plan, the United States has pushed for mass displacement of Gaza's 2 million residents, urging Jordan and Egypt to accept refugees. Israeli Prime Minister Benjamin Netanyahu supports the plan, with his government creating a directorate for the “voluntary departure” of Palestinians.
However, key Arab leaders have opposed the displacement plan. Egyptian President Abdel Fattah al-Sisi will meet Saudi officials on February 20 to discuss a $20 billion regional reconstruction fund for Gaza. Meanwhile, UAE President Mohammed bin Zayed Al Nahyan told visiting U.S. Secretary of State Marco Rubio that Abu Dhabi rejects any forced Palestinian displacement.
