GAZA, (PIC)
An international report released on Monday estimates that recovery and reconstruction in the Gaza Strip will cost approximately $71.4 billion, following the widespread devastation caused by Israel’s war. The report highlights major challenges facing rebuilding efforts on both humanitarian and institutional levels.
The estimates come from a final assessment of damage, economic losses, and recovery needs prepared by the European Union and the United Nations in cooperation with the World Bank. The report states that the total cost is spread over the next decade, with an urgent need for about $26.3 billion in the first 18 months to restore essential services, rebuild infrastructure, and support economic recovery.
According to the report, physical damage to infrastructure is estimated at around $35.2 billion, while economic and social losses are valued at approximately $22.7 billion, with a widespread impact across housing, health, education, trade, and agriculture sectors.
The report indicates that more than 371,000 housing units have been destroyed or damaged, over half of the hospitals are out of service, and schools have been almost entirely damaged or destroyed. Meanwhile, the economy has contracted by 84%.
In a related context, the report estimates that human development in Gaza has been set back by 77 years. Around 1.9 million people have been displaced, often multiple times, and more than 60% of the population has lost their homes.
The report also notes that women, children, people with disabilities, and the most vulnerable groups in society are bearing the heaviest burden.
It stresses that recovery efforts in Gaza must proceed in parallel with humanitarian work to ensure an effective and orderly transition from emergency relief to large-scale reconstruction, covering both the Gaza Strip and the West Bank.
The report emphasizes that recovery and reconstruction efforts must be “Palestinian-led” and should adopt a “build back better” approach aimed at creating a more sustainable future. This includes supporting a transition of governance to the Palestinian Authority, in line with UN Security Council Resolution 2803 and the comprehensive plan, as well as advancing a lasting political settlement based on the two-state solution. Conditions for recovery The report outlines the need for a set of “enabling conditions” to effectively implement UN Security Council Resolution 2803 on the ground, warning that without these conditions, neither recovery nor reconstruction will succeed.
The Security Council adopted Resolution 2803 on November 17, 2025, to support US President Donald Trump’s Gaza peace plan and bring an end to the war.
In this regard, the European Union and the United Nations stated that a sustained ceasefire and adequate security are minimum requirements. Recovery must also ensure the delivery of humanitarian aid and the immediate restoration of essential services without obstruction.
They added that freedom of movement for people, goods, and reconstruction materials within and between Gaza and the West Bank is critical, along with the establishment of an effective and transparent financial system.
The report further highlights the importance of clear and accountable governance, including defining mandates and setting conditions for transitional administrative bodies under Resolution 2803, enabling them to operate in coordination with the Palestinian Authority. It also calls for establishing a credible pathway for future governance across all occupied Palestinian territories, including Gaza, the West Bank, and East Jerusalem.
Additionally, the report identifies debris removal, management of unexploded ordnance, and resolving issues related to housing, land, and property as essential prerequisites for reconstruction.
The EU and UN urged the international community to mobilize resources in a coordinated manner and to remove all obstacles preventing the rapid deployment of expertise and equipment.
The report concludes by reaffirming that UN Security Council Resolution 2803 cannot be implemented, and the comprehensive plan cannot fully succeed, without two key elements: the physical and institutional reconstruction of Gaza and a clear pathway toward establishing a Palestinian state across the occupied Palestinian territories.