Fund Dilemma: Gaza's Reconstruction Stalled Amid Disarmament Disputes

Efforts to rebuild Gaza face financial obstacles as countries await Hamas disarmament before committing funds. The U.S.-led plan under Donald Trump seeks a peaceful agreement, but disagreements persist. With estimated reconstruction costs of $100 billion, funding remains uncertain, affecting Gaza's recovery post-conflict.


Devdiscourse News Desk | Updated: 04-02-2026 16:11 IST | Created: 04-02-2026 16:11 IST
Fund Dilemma: Gaza's Reconstruction Stalled Amid Disarmament Disputes

The international community has expressed hesitance in contributing funds for the reconstruction of Gaza, as key donors demand the disarmament of Hamas before committing support. This delay jeopardizes the rebuilding plans set forth in the U.S.-led initiative, highlighting the potential for renewed conflict if a resolution is not soon reached.

Donald Trump's plan aims for a peaceful resolution, asking for Israeli military withdrawal and Hamas's disarmament as preconditions. Despite reopening Gaza's Rafah border with Egypt, funding remains in limbo, with international donors emphasizing the need for demilitarized zones to ensure their investments do not fuel further conflict.

The estimated $100 billion project envisages a reborn Gaza with new housing, industrial parks, and data centers. However, disarmament complexities and fund allocation controversies have stalled progress. Without committed financing or a disarmament agreement from Hamas, Gaza's rehabilitation remains an uphill battle.

(With inputs from agencies.)

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