US proposes $112 billion plan to transform Gaza into luxury coastal enclave

The plan envisions a four-stage transformation of Gaza over more than 20 years, beginning in the south and gradually moving north.

By Vered Weiss, World Israel News

A sweeping US-backed proposal to rebuild the Gaza Strip into a high-end coastal and technology hub has been presented to potential donor states, outlining a multi-decade vision that would condition reconstruction on the full disarmament of Hamas, according to reporting cited from the Wall Street Journal.

The plan, informally known as Project Sunrise, envisions a four-stage transformation of Gaza over more than 20 years, beginning in the south and gradually moving north.

Rafah and Khan Younis would be rebuilt first, followed by the central refugee camps and ultimately Gaza City.

The estimated cost for the first decade alone is roughly $112 billion, with the United States expected to provide an initial $60 billion as an anchor investment.

Developed over the past 45 days by a team led by President Donald Trump’s senior adviser and son-in-law Jared Kushner alongside Middle East envoy Steve Witkoff, the proposal has been shared with wealthy Gulf states, as well as Turkey and Egypt.

The materials include dozens of slides marked sensitive but unclassified, detailing plans to clear rubble, neutralize unexploded ordnance, dismantle Hamas tunnel networks, and provide temporary housing and medical facilities while permanent infrastructure is built.

Later phases envision large-scale residential construction, public institutions, and transportation systems, followed by luxury coastal developments and high-tech projects.

One concept rebrands Rafah as a new administrative capital for Gaza, featuring more than 100,000 housing units, hundreds of schools, and dozens of hospitals and cultural institutions. Another section imagines Gaza as a smart city governed by digital systems and advanced public services.

By the tenth year, the proposal estimates that roughly 70 percent of Gaza’s coastline could be commercially developed, generating more than $55 billion in long-term investment returns.

Central to the plan, highlighted prominently in the materials, is a requirement that Hamas fully demilitarize and dismantle all weapons and tunnel networks, a condition Israel and the United States have repeatedly said is non-negotiable.

US officials cited in the report expressed mixed views, with some questioning whether Hamas would ever agree to disarm or whether international donors would commit the necessary funds. Others described the initiative as the most detailed and optimistic framework yet for Gaza’s future.

A White House spokesperson said the administration remains focused on sustaining a lasting peace while laying the groundwork for a stable and prosperous Gaza.

The discussions come as Witkoff met with senior Qatari, Egyptian, and Turkish officials to push forward the fragile ceasefire’s second phase, which calls for an Israeli withdrawal, the replacement of Hamas governance with an interim authority, and the deployment of an international stabilization force.