Transforming Gaza: Visionary Development or Unrealistic Ambition?
The Gaza Strip faces one of the most severe economic collapses ever recorded. Against this backdrop, a recent plan, presented by Jared Kushner and associated with Donald Trump’s broader Middle East policy framework, outlines an ambitious vision to transform Gaza from a conflict zone into a future economic hub. The proposal raises a central question: can large-scale investment and urban transformation create a sustainable economic future for Gaza?
Gaza’s economic devastation is profound. According to a 2025 UNCTAD assessment, Gaza’s economy collapsed by 83% in 2024, pushing all 2.3 million residents into poverty, and erasing nearly seven decades of human development gains (UNCTAD, 2025). Moreover, GDP per capita fell to just $161, among the lowest in the world. The scale of physical destruction is equally concerning. A 2025 World Bank assessment estimated $30 billion in structural damage and $33 billion in total reconstruction needed across Gaza and the West Bank (World Bank, 2025). Thus, any redevelopment plan must focus on rebuilding the territory’s economic foundations.
Unveiled at the World Economic Forum in Davos in January 2026 and delivered by Jared Kushner under the newly formed “Board of Peace,” Trump’s plan proposes tens of billions of dollars in investment to build permanent housing, schools, medical facilities, industrial zones, and more than 180 skyscrapers along Gaza’s coastline. (Heuer, 2026) It also promises 100,000 new housing units, coastal tourism, and 500,000 new jobs. From an economic development perspective, the plan’s objectives are clear: large-scale capital inflows, rapid infrastructure modernization, and the creation of a stable environment favorable to private investment. Kushner has argued that Gaza “could be a destination” with thriving industry and employment opportunities. (Mansfield, 2026)
The central question is whether such a plan is financially feasible. Reconstruction needs already exceed $50 billion, and Trump’s proposal appears to require additional tens of billions in new investment. (World Bank, 2025) The Board of Peace’s membership model, requiring a $1 billion fee for a permanent seat, suggests an attempt to attract wealthy states and private investors. However, relying on voluntary contributions from states with divergent geopolitical interests introduces uncertainty. Historic reconstruction efforts show that external financing can stimulate short-term growth but often fails to produce sustainable development without strong institutions. For example, after the 2010 earthquake, Haiti received more than $13 billion international aid, but much of the money never reached Haitian institutions. Instead, it was routed through foreign NGOs and contractors. As a result, thousands of planned housing units were never completed, major infrastructure projects stalled, and the country saw little long-term economic recovery despite the scale of global funding.
Gaza’s governance challenges and political instability significantly increase investment risk, thereby deterring private-sector participation. Indeed, investors face not only the immediate uncertainty of operating in a conflict zone but also the deeper structural problem concerning authority. Gaza is nominally under the Palestinian Authority (PA), yet Hamas exercises de facto control. Neither has internationally recognized administrative capacity to oversee a multibillion-dollar redevelopment program. This creates a governance vacuum, and consequently low investor confidence and high likelihood of capital flight.
Reconstruction itself would generate massive short-term employment in construction, logistics, and services. Long-term opportunities include trade expansion, industrial growth, tourism development, and revitalization of human capital. Yet, the structural barriers remain formidable. UN reports emphasize that decades of movement restrictions and recent military operations have “wiped out decades of progress”, leaving Gaza in an “unprecedented and catastrophic" economic state. (UN News, 2025) Water scarcity, electricity shortages, and destroyed transportation networks create impediments that no amount of investment can quickly overcome. Human capital has also deteriorated due to prolonged unemployment and displacement.
Moreover, the redevelopment plan has been heavily criticized for lacking consultation with Palestinians, raising questions about community participation and who ultimately benefits. Israeli officials expressed skepticism, especially about the inclusion of Turkey and Qatar, arguing that both countries’ ties to Hamas made them unreliable or politically problematic partners (Berman, 2026). Palestinian leadership and civil society groups strongly rejected the proposal, arguing that it appears disconnected from Gaza’s humanitarian realities and imposes an externally designed economic vision. (Democracy Now, 2026). Other Arab states, including Qatar and Jordan criticized the plan for overlooking core political issues such as displacement, sovereignty, and long‑term governance. Yet, despite these issues, Qatar and Turkey have signed on to join the newly established "Board of Peace," also joined by Saudi Arabia, Egypt, Jordan, Indonesia, Pakistan, and the United Arab Emirates. The joint statement mentioned the want to support “the implementation of the mission of the Board of Peace as a transnational administration” (Nerozzi, 2026)
In conclusion, Trump’s Gaza redevelopment plan presents an ambitious economic vision that could, under ideal conditions, transform one of the world’s most devastated economies into a functional regional hub. However, the scale of destruction, financing challenges and structural constraints mean that the plan’s feasibility hinges on political stability and international cooperation.
Sources:
UNCTAD. (2025). Gaza’s economy collapsed 83% in 2024, pushing all 2.3 million people into poverty. United Nations Conference on Trade and Development. https://unctad.org/news/gazas-economy-collapsed-83-2024-pushing-all-23-million-people-poverty
World Bank. (2025, February 18). New report assesses damages, losses, and needs in Gaza and the West Bank https://www.worldbank.org/en/news/press-release/2025/02/18/new-report-assesses-damages-losses-and-needs-in-gaza-and-the-west-bank
Heuer, M. (20226, January 22). Kushner unveils $25B Gaza masterplan including skyscrapers, housing https://www.upi.com/Top_News/World-News/2026/01/22/masterplan/3691769121052/?utm_source=copilot.com
Mansfield, E. (2026, January 23). Trump’s son‑in‑law unveils Gaza redevelopment plan. Yahoo News. https://ca.news.yahoo.com/trumps-son-law-unveils-gaza-201952344.html?guccounter=1&guce
UN News. (2025). Gaza facing worst economic collapse ever recorded, UN trade agency warns. United Nations. https://news.un.org/en/story/2025/11/1166444
Berman, L. (2026, January 22). Kushner presents plan for glitzy Gaza rebuild, aiming for “catastrophic success”
Democracy Now. (2026). The “Board of Peace” plan for Gaza will subjugate Palestinians, critics warn. https://truthout.org/video/the-board-of-peace-plan-for-gaza-will-subjugate-palestinians-journalist-warns/
Nerozzi, T. Qatar and Turkey join 'Board of Peace' despite Israeli protest, highlighting Trump's autocratic approach. Washington Examiner