Trump’s Gaza takeover ‘plan’ puts Egypt in a tough spot
Egypt must balance internal stability and US foreign aid when weighing its counter-offer to Trump’s Gaza plan.
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By Al Jazeera StaffPublished On 14 Feb 202514 Feb 2025
The meeting on Tuesday between Jordan’s King Abdullah II and US President Donald Trump ended in tense anticipation of what will come next for the Gaza Strip.
At stake was Trump’s suggestion that the United States “take over” the enclave and expel Palestinians to Egypt and Jordan.
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King Abdullah mentioned during an impromptu news conference that an alternative plan to rebuild Gaza without ethnically cleansing it would be crafted by Arab countries, including Egypt, which was already planning an emergency Arab summit on Gaza on February 27.
Hours later, Egypt issued a statement confirming it would present “a comprehensive vision for rebuilding Gaza while ensuring Palestinians remain on their land” and reiterated its commitment to working with the US to reach “a just settlement to the Palestinian issue”.
What is at stake for Egypt?
“It’s hard to know how seriously to take Trump’s proposed US takeover of Gaza,” Jacob Eriksson, lecturer of post-war recovery studies at the University of York, told Al Jazeera.
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“If Trump persists, however, it could put Egypt in a difficult position,” he added, referring to Trump’s threats that he would freeze aid funds to Egypt if it does not cooperate.
“At a time when Egypt continues to face mounting economic challenges linked to debt and inflation, this could have a significant impact.”
Since 1946, the United States has given Egypt more than $85bn in bilateral foreign aid, including military and economic assistance, according to the American Chamber of Commerce in Egypt.
And Egypt was the fifth-largest recipient of US foreign aid in 2023, receiving $1.45bn, 85 percent of which was for the military sector.
Egyptian journalist Hossam El-Hamalawy said that the aid Cairo receives “is a statement that Egypt is a close ally and is a partner for Washington” and signifies strong political backing from Washington.
But money isn’t everything.
Although foreign support is vital for the survival of the current Egyptian administration, so is internal political peace, which could be destabilised if the expulsion of Palestinians is allowed.
“Generation after generation of Egyptian youth have had Palestine as their gateway into politics,” El-Hamalawy said.
“In addition … [Egyptian President Abdel Fattah el-Sisi] is very worried about the replication of the Beirut scenario where Palestinian resistance operations in one way or another gave Israel a justification to go into Lebanon and occupy chunks of it for a very long time,” El-Hamalawy added, referring to Israeli attacks on Lebanon and occupation of its territory for different periods, including today.
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Counter-offer
For now, until Trump stops talking about forcing the displacement of Palestinians, el-Sisi has reportedly said that he will not attend any talks at the White House.
Egypt has little choice but to work with other Arab states on a counter-proposal that they can defend together.
“Any drastic action could endanger important agreements,” political analyst Abdallah Nasef, who believes Cairo will have to compromise a little in the proposal, told Al Jazeera.
“Egypt could, similar to Jordan, offer to take in injured individuals and their families, albeit at a larger rate and number than that proposed by Jordan,” Nasef suggested.
King Abdullah said on Tuesday that Jordan could “right away” take 2,000 sick children.
Egypt has been treating injured Palestinians in its hospitals since the start of the war, and will likely continue to do so in larger numbers when the crossing opens.
“While any significant economic contribution to the reconstruction of Gaza is likely to prove difficult given aforementioned economic challenges, Egyptian officials … would undoubtedly continue to offer its services as a mediator and a political partner,” researcher Jacob Eriksson said, doubtful of how much Egypt could financially contribute.
Reconstruction efforts
Israel has said that it will not compensate Palestinians or help to pay to fix the damage it has wrought in Gaza. Instead, it would be up to regional countries and the international community to implement any plan put forward by Egypt and Jordan.
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“One can speculate that, definitely, [this plan] will involve enlisting massive amounts of cash and finances from the Gulf … to speed up the reconstruction process for the Palestinians without displacing them,” El-Hamalawy said.
Egyptian construction companies do appear ready to cooperate with an international effort to rebuild Gaza. For instance, real estate and construction tycoon Hisham Talaat Moustafa, said in a TV interview on February 9 that he has been working on a reconstruction plan that would require the participation of about 40 to 50 construction companies from Egypt and other countries.
“Egypt could contribute to reconstruction efforts while simultaneously guaranteeing that Gazans don’t need to be forced out,” Nasef said, adding that “They won’t have to if caravans and tents, which Israel continues to block, are allowed into the Strip.” He agreed with El-Hamalawy, though, that Egypt’s efforts would have to be bankrolled by the Gulf, due to Egypt’s economic problems.
Gulf countries have played a significant role in funding the aid reaching the Gaza Strip in the last few months, with the Gulf Cooperation Council announcing in December that its member states – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates – had collectively given $650m in humanitarian aid to Gaza, along with the occupied West Bank, since October 2023.
The reconstruction of Gaza, where the vast majority of buildings and infrastructure has been destroyed by Israel, will cost far more.
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But with Trump’s Gaza displacement plan complicating matters and a ceasefire deal in Gaza that has threatened to collapse in the past week, Arab countries are under pressure to respond.