Steve Witkoff has said the estimated total for Gaza reconstruction could reach nearly £37bn, following months of relentless bombardment that left large parts of the enclave uninhabitable.
“The estimates are in the $50bn (£37.2bn) range,” the US special envoy told CBS News during a televised interview. “It might be a little less; it might be a little more.”
He added, “I happen to think that that’s not a lot of money in that region,” referring to the scale of regional investments and existing aid pledges.
The UN, however, has estimated that the cost of Gaza reconstruction could exceed $70bn, citing widespread devastation to housing, hospitals, roads, and power infrastructure following two years of conflict.
International aid agencies say rebuilding efforts will require not only financial backing but also a long-term political settlement to ensure stability and sustainable development across the Gaza Strip.
According to a UN development programme, several Arab nations and European countries have already expressed early interest in contributing to Gaza reconstruction efforts once a durable ceasefire takes hold.
The United States, which was Israel’s largest arms supplier throughout the conflict, has faced criticism from humanitarian groups for indirectly fuelling the destruction now requiring such a massive rebuild.
Germany and several European partners also approved the export of military equipment to Israel, further complicating diplomatic discussions about shared responsibility in financing Gaza reconstruction.
Satellite images released by international observers show entire neighbourhoods in Gaza City reduced to ash, with the northwestern al-Makusi area among the hardest hit by Israeli airstrikes.
Work crews affiliated with the International Reconstruction Committee have reportedly begun clearing debris in al-Makusi as part of a pilot effort to prepare for large-scale Gaza reconstruction.
“This is an enormous undertaking,” said a UN field officer in Rafah. “The physical damage is one thing — rebuilding people’s lives and trust will take generations.”
On Monday, the Palestinian news agency Wafa reported that two Palestinians were killed by Israeli gunfire in the al-Tuffah neighbourhood, east of Gaza City, underscoring the fragility of the ceasefire.
Such incidents continue to raise fears that sporadic violence could derail ongoing talks and delay the full implementation of Gaza reconstruction projects already being mapped by international planners.
Jared Kushner, who joined Witkoff in recent meetings, told CBS News that Israel must help Palestinians succeed if it wishes to integrate fully into the broader Middle East.
“The biggest message we’ve tried to convey to Israeli leadership,” he said, “is that after this war, they must help the Palestinian people thrive and do better.”
Kushner, who serves informally as an emissary for former US president Donald Trump, said the diplomatic push was still “just getting started” and would intensify in the coming months.
He emphasized that any plan for Gaza reconstruction must involve regional cooperation, stating, “Arab states will only commit funds if they see real progress toward Palestinian self-determination and stability.”
Asked whether Hamas was cooperating, Kushner noted that the group appeared to be “acting in good faith” and “looking to honour the agreement” negotiated by international mediators.
Analysts believe sustained cooperation from Hamas and Israel is vital for ensuring that reconstruction funds are used effectively and not diverted amid political tensions or corruption.
A senior Egyptian diplomat involved in the talks said that Cairo’s role would focus on “guaranteeing the security framework” to enable safe access for Gaza reconstruction workers.
He added that Egypt was coordinating closely with Qatar and the United Arab Emirates, both expected to be major contributors once donor pledges are formally announced.
Meanwhile, Israeli officials have privately acknowledged that rebuilding Gaza is a moral and strategic necessity but insist that security verification mechanisms must accompany every phase of reconstruction.
“The challenge,” one Israeli defence source said, “is ensuring that materials meant for Gaza reconstruction are not repurposed for militant activity or weapons manufacturing.”
The Biden administration has signaled conditional support for the reconstruction plan but has yet to announce specific funding, instead urging allies to take the financial lead.
Humanitarian groups warn that without immediate investment in clean water systems, medical facilities, and housing, post-war Gaza could face “unprecedented public health crises” within months.
“The cost of inaction will be catastrophic,” said a spokesperson for Médecins Sans Frontières, who described hospitals as “overrun, under-equipped, and operating with intermittent electricity.”
Financial experts estimate that rebuilding Gaza’s industrial base alone could consume nearly half of the projected Gaza reconstruction budget, particularly given the widespread loss of small and medium enterprises.
Local business owners in Gaza City say they fear being excluded from international reconstruction contracts, which could instead benefit large foreign companies with greater logistical capacity.
“We want to rebuild our own city,” said Khaled al-Shaer, a displaced shopkeeper now living in Khan Younis. “Give us materials and safety — we can do the rest.”
Analysts argue that empowering local labour will be crucial for sustainable Gaza reconstruction, creating jobs and fostering a sense of ownership among residents who have endured years of war.
European diplomats have indicated they will push for transparent oversight mechanisms to monitor spending, citing past instances of aid misuse in conflict zones.
The European Commission has already proposed a joint monitoring body combining UN officials, donor representatives, and Palestinian technocrats to track all Gaza reconstruction disbursements.
Observers note that the success of this initiative may determine whether global confidence in Middle East post-conflict recovery efforts can be restored.
In Washington, political analysts see Witkoff’s comments as a strategic attempt to gauge international willingness to share the burden of rebuilding a devastated territory.
“By framing the £37bn figure as modest, he’s inviting partners to think of this not as charity, but as an investment in regional peace,” said an analyst at Brookings.
While Witkoff has drawn both praise and skepticism, few dispute that Gaza reconstruction will test the international community’s resolve to transform destruction into opportunity.
The coming months are likely to reveal whether donor commitments will translate into concrete action, or whether bureaucratic paralysis will once again delay the road to recovery.
For now, the people of Gaza wait amid ruins, hoping the promises of Gaza reconstruction will finally deliver the stability they have long been denied.
