Investment or Liquidation?.. 300 Billion Dollars for the Reconstruction of Gaza

SadaNews - In times of major collapses, investment dreams intertwine with political engineering techniques, and "development" projects become a distorted mirror reflecting calculations disconnected from the on-ground reality.

This is exactly what emerges in the plan revealed by the Financial Times, which aims to transform the Gaza Strip into a massive economic project costing over 300 billion dollars, supported by Israeli businessmen and Western figures and institutions, based on beautifying hypotheses that overlook what experts call the "political foundation" for any genuine developmental vision in a besieged and fragmented land.

The plan, circulated by media reports - which includes the establishment of deep ports, tourist islands, a smart manufacturing zone under the oversight of Elon Musk, and even providing financial compensation to encourage around 500,000 Palestinians to leave the Strip - has sparked a wave of moral and political rejection.

Dr. Nasr Abdel Karim, a professor of financial sciences at the American University of the Middle East, described this initiative as: "illegitimate, unethical, and merely a fragile concept that cannot be accepted even by the American administration itself."

So what is the essence of this project? What are its economic and political implications? And is investment in Gaza possible without addressing the root causes of the crisis and the reality of war? This report provides a comprehensive analysis of the plan's dimensions, in light of a critical reading based on on-ground facts and a realistic economic vision.

The Riviera Plan: Beautifying the Siege or Reshaping Gaza?

The details of the proposed project appear ambitious on the surface:

Luxury resorts on the coast and artificial islands under the title "Gaza Riviera".

A deep port linking Gaza with an economic corridor connecting India with the Middle East and Europe.

A smart manufacturing zone for assembling cars under the supervision of major American companies.

Financial compensation of 9,000 dollars for each Palestinian willing to leave the Strip, as part of a vision to accommodate half of Gaza's population abroad.

However, behind these attractive projects and programs lies a glaring moral dilemma. The plan indirectly stipulates incentivizing voluntary displacement in exchange for money, which Abdel Karim considered "an attempt at demographic cleansing cloaked in money and investment".

Interestingly, entities like the Boston Consulting Group and the Tony Blair Foundation quickly rushed to deny their official connection to the plan despite their names being mentioned, asserting that those who were involved did so "in a personal capacity".

"This confirms that it is an unethical initiative, as any real project would have received an official endorsement, not through leaked designs and subsequent denial," according to Abdel Karim.

Gaza Between Ruin and Dreamy Visions

While some proposals circulate around "tourism development" and "transforming Gaza into an Eastern Riviera," international institution reports paint a grim picture showing the depth of economic and social collapse in the Strip. In 2024, Gaza's economy recorded a historical contraction of 83 percent, according to the World Bank, amid devastating military aggression and a long-standing blockade, leading to near-complete paralysis of the economic cycle.

Direct material losses have been estimated at about 29.9 billion dollars, distributed between infrastructure, health, education, and energy, while the unemployment rate reached 80 percent, one of the highest globally, according to UN reports. On the health front, the World Health Organization announced losses exceeding 6.3 billion dollars, with 772 facilities affected.

In light of these figures, Abdel Karim believes that any talk of turning Gaza into an investment destination without addressing the political and humanitarian roots of the crisis remains purely an economic illusion. As activist Abdel Karim expresses: "The people of Gaza do not need extravagant projects, but real solutions that guarantee electricity, water, and an end to the siege." This view aligns with an economic perspective that considers reconstruction conditional primarily upon ending the war and opening a comprehensive political horizon.

From Profitability to Legitimacy: Companies Face a Moral Test

Abdel Karim notes that international companies no longer operate solely on a profit logic, but are subject to environmental, social, and governance standards, adding: "Even major profitable projects have become obligated to social responsibility standards and cannot bypass international law or become involved in operations that entail human rights violations."

He clarifies that the attempt by some companies and Israeli businessmen to play the profit card through these projects will not withstand pressure from international public opinion and legal institutions.

"Those who participated from companies or individuals will pay the price, even if their institutions deny them later," according to Abdel Karim's statements.

The Arab Plan: Reconstruction Under Clear Political and Humanitarian Conditions

In contrast, Abdel Karim praises an Arab plan led by Egypt, Saudi Arabia, the UAE, and Jordan, with Palestinian support and coordination with the United Nations, estimated at a cost of 53 billion dollars, coming in two phases:

Immediate relief to contain the humanitarian crisis.

Strategic reconstruction based on three main conditions:

Stop the Israeli war.

Gradual withdrawal of troops.

Lifting the blockade and opening crossings.

The plan also includes a basic regulatory provision: a unitary Palestinian reference in managing reconstruction, through a technocratic committee affiliated with the Palestinian National Authority, ensuring transparency in implementation and unifying the political pathway.

Abdel Karim also warned that "any reconstruction project that does not precede an agreement on a unified Palestinian reference will be subject to failure and division."

Development is Not a Substitute for Freedom

What certain parties promote as massive investment in Gaza is nothing but a distorted conception of development, neglecting the political factor and bargaining with people for their presence in their homeland in exchange for a handful of dollars. Genuine investment "does not begin with the displacement of populations, but by ending the blockade, achieving peace, and empowering people to decide their fate," as Abdel Karim states.

Reducing the Palestinian issue to numbers and projects does not address the roots of the problem, but rather deepens it.

Talking about an investment of 300 billion dollars in Gaza, without ending the war and lifting the blockade, amounts to an economic illusion cloaked in business language and marketed by opportunistic intentions. Regardless of the plan's persuasive ability in formal terms, it lacks political, moral, and realistic legitimacy.

As Abdel Karim summarized: "Yes, Gaza can be built, but not on the ruins of its people's dignity… nor on the bodies of its victims."

Source: Financial Times