May 28, 2025 2:10 pm
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Egypt Faces New Crisis Over Trump’s Gaza Occupation Plan

Jordan’s King Abdullah II and U.S. President Donald Trump concluded their meeting on Tuesday amid heightened uncertainty. Trump’s proposal regarding the Gaza Strip has raised widespread concerns. He has suggested bringing Gaza under U.S. control while relocating Palestinians to Egypt and Jordan, according to Qatar-based news outlet Al Jazeera.

King Abdullah stated in an informal press conference that an alternative plan for Gaza’s reconstruction would be developed, ensuring that Palestinians are not displaced. This plan will involve Egypt and other Arab countries. Meanwhile, Egypt is planning an emergency Arab summit on Gaza for February 27. A few hours later, Egypt issued a statement confirming that it would present a comprehensive reconstruction plan for Gaza, ensuring Palestinians remain in their homeland. Additionally, Egypt reiterated its commitment to working with the U.S. for a just resolution of the Palestinian issue.

Where is the risk for Egypt?

Dr. Jacob Eriksson, a lecturer at the University of York’s Post-War Recovery Studies, told Al Jazeera that it is difficult to determine how seriously Trump’s proposal should be taken. However, if Trump insists, Egypt could face a tough situation.

Eriksson referenced Trump’s threats, where he indicated that U.S. aid to Egypt could be cut if they refuse to cooperate. With Egypt already facing growing economic challenges due to debt and inflation, such a move could have significant consequences.

According to the American Chamber of Commerce in Egypt, the U.S. has provided Egypt with over $85 billion in bilateral foreign aid since 1946, including military and economic assistance. In 2023, Egypt was the fifth-largest recipient of U.S. foreign aid, receiving $1.45 billion—85% of which was allocated for the military sector.

Egyptian journalist Hossam El-Hamalawy stated that the aid Egypt receives cements its role as a close ally and partner of the U.S., indicating strong political support from Washington. However, financial aid is not everything. While foreign assistance is crucial for Egypt’s current administration, maintaining internal political stability is equally important, which could be disrupted if Palestinians are forcibly displaced.

El-Hamalawy pointed out that for generations, Egyptian youth have had a gateway into Palestinian politics. Egyptian President Abdel Fattah el-Sisi is deeply concerned about a repeat of the Beirut scenario, where Palestinian resistance operations eventually gave Israel an excuse to invade Lebanon and occupy parts of it for an extended period.

Reactions

It has been reported that President el-Sisi will not participate in any White House discussions as long as Trump continues to advocate for Palestinian displacement. Egypt has limited options beyond working with other Arab nations on an alternative proposal. Political analyst Abdullah Nasef told Al Jazeera that any extreme measures could put significant agreements at risk.

Nasef believes that Egypt may have to make some compromises in the proposal. As a middle ground, he suggests that Egypt, like Jordan, could accept injured individuals and their families. On Tuesday, King Abdullah announced that Jordan would immediately take in 2,000 sick children. Since the start of the war, Egypt has been providing medical treatment to wounded Palestinians, and if border crossings are opened, it could continue doing so on a larger scale.

Researcher Jacob Eriksson noted that due to its economic difficulties, Egypt might struggle to make a significant financial contribution to Gaza’s reconstruction. However, Egyptian officials will undoubtedly continue their role as mediators and political partners.

Reconstruction Efforts

Israel has stated that it will not compensate Palestinians or assist in repairing the damage it has caused in Gaza. Instead, regional countries and the international community will be responsible for implementing any reconstruction plan proposed by Egypt and Jordan.

El-Hamalawy suggests that large sums of money could be raised from Gulf nations to ensure rapid reconstruction without forcibly displacing Palestinians. Egyptian construction companies seem ready to cooperate with international reconstruction efforts. For example, real estate and construction mogul Hisham Talaat Moustafa stated in a TV interview on February 9 that he is working on a reconstruction plan involving 40 to 50 construction companies from Egypt and other countries.

Nasef mentioned that Egypt could contribute to reconstruction efforts while avoiding forced displacement of Gaza residents. He agreed with El-Hamalawy that due to Egypt’s economic challenges, financial support from Gulf countries will be essential.

Over the past few months, Gulf nations have played a significant role in funding humanitarian aid reaching Gaza. The Gulf Cooperation Council (GCC) announced in December that since October 2023, its member states—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—have provided $650 million in humanitarian aid to Gaza and the West Bank.

Most buildings and infrastructure in Gaza have been destroyed by Israeli attacks. A much larger financial commitment will be needed for the complete reconstruction of the territory. However, Trump’s proposal to displace Palestinians has complicated the situation, and with the recent breakdown of a ceasefire agreement, Arab countries are now under significant pressure.

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