Arab leaders have reached an agreement on a $53 billion initiative aimed at rebuilding the Gaza Strip and putting it under the governance of the Palestinian Authority.

This initiative was unveiled during an Arab League summit, where officials suggested emergency relief actions, rehabilitation of essential infrastructure, and long-term economic development projects.

The announcement serves as an alternative to a previous proposal regarding the relocation of Gaza’s population, which critics labeled as an endorsement of forced displacement.

The new proposal emphasizes rebuilding efforts that will concentrate on housing, commercial projects, and public facilities, as well as plans for creating a port, technology hub, and airport.

Officials underscored the significance of having a unified Palestinian representation, pointing out the role of the Palestine Liberation Organization, which excludes Hamas.

Additionally, the plan alluded to a political framework aimed at achieving Palestinian self-determination, while acknowledging opposition from certain Israeli leaders to a pathway toward statehood.

Remarks from summit attendees indicated that the initiative's success hinges on collaboration among various stakeholders.

The plan also outlined approaches to tackle challenges posed by armed groups in Gaza, proposing a framework for a comprehensive political process.

Egyptian authorities, who played a pivotal role in developing the proposal, affirmed their commitment to ensuring that Palestinians remain on their land.

Prominent representatives from various governments and organizations, including the United Nations, indicated their willingness to get involved.

Nonetheless, obstacles persist.

Israel continues to control external borders, enforcing restrictions on goods and movement, while Hamas leaders retain influence in Gaza and have expressed opposition to any measures that exclude them.

Some officials in Gaza have declared they would reject any plan perceived as an imposition from the outside.

Proponents of the plan worry that a lack of coordinated efforts could lead to further conflict and displacement, potentially undermining regional stability.

Disputes over governance and security persist among Palestinian factions, and Israeli authorities have not publicly supported the proposed reconstruction framework.

Observers have noted the possibility for future negotiations regarding who would ultimately manage the territory's civil and security arrangements.