Arab states adopt alternative to Trump's 'Gaza Riviera'

Arab leaders have adopted an Egyptian reconstruction plan for Gaza that would cost $US53 billion ($A85 billion) and avoid displacing Palestinians from the enclave, in contrast to US President Donald Trump's "Middle East Riviera" vision.

Egyptian president Abdel Fattah al-Sisi said the proposal, welcomed in subsequent statements by Hamas and criticised by Israel, had been accepted at the closing of a summit in Cairo.

Sisi said at the summit he was certain Trump would be able to achieve peace in the conflict that has devastated the Gaza Strip.

The major questions that need to be answered about Gaza's future are who will run the enclave and which countries will provide the billions of dollars needed for reconstruction.

Sisi said Egypt had worked in cooperation with Palestinians on creating an administrative committee of independent, professional Palestinian technocrats entrusted with the governance of Gaza.

The committee would be responsible for the oversight of humanitarian aid and managing the Strip's affairs for a temporary period, in preparation for the return of the Palestinian Authority (PA), he said.

The other critical issue is the fate of the Palestinian militant group Hamas, the PA's rival, which triggered the Gaza war by attacking Israel on October 7, 2023, killing 1200 people and taking more than 250 hostages, according to Israeli tallies.

In a statement, Hamas said it welcomed the plan as well as the formation of the Palestinian committee.

Palestinian President Mahmoud Abbas, who heads the PA, said he welcomed the Egyptian idea and urged Trump to support such a plan that would not involve displacing Palestinian residents.

Abbas, in power since 2005, also said he was ready to hold presidential and parliamentary elections if circumstances allowed, adding his PA was the only legitimate governing and military force in the Palestinian Territories.

Abbas has seen his legitimacy steadily undermined by Israeli settlement building in the occupied West Bank, which he oversees. Many Palestinians now regard his administration as corrupt, undemocratic and out of touch.

The Israeli foreign ministry in a statement called the plan "rooted in outdated perspectives" and rejected the reliance on the PA while complaining that Hamas was left in power by the plan.

Any reconstruction funding would require heavy buy-in from oil-rich Gulf Arab states such as the United Arab Emirates and Saudi Arabia, which have the billions of dollars needed.

Palestinian Prime Minister Mohammed Mustafa said the reconstruction fund would seek international financing as well as oversight and likely be located in the World Bank.

The UAE, which sees Hamas and other Islamists as an existential threat, wants an immediate and complete disarmament of the group, while other Arab countries advocate a gradual approach, a source close to the matter said.

A source close to Saudi Arabia's royal court says the continued armed presence of Hamas in Gaza was a stumbling block because of strong objections from the United States and Israel, which would need to sign off on any plan.

Hamas was founded in 1987 by Egypt's Muslim Brotherhood during the first Palestinian Intifada, or uprising.

Senior Hamas official Sami Abu Zuhri on Tuesday rejected Israeli and US calls for the group to disarm, saying its right to resist was not negotiable.

Since Hamas drove the Palestinian Authority out of Gaza after a brief civil war in 2007, it has crushed all opposition there.

Egypt, Jordan and Gulf Arab states have for almost a month been consulting over an alternative to Trump's ambition for an exodus of Palestinians and a US rebuild of Gaza, which they fear would destabilise the entire region.

Egypt's Reconstruction Plan for Gaza is a 112-page document that includes maps of how its land would be re-developed and dozens of colourful AI-generated images of housing developments, gardens and community centres. The plan includes a commercial harbour, a technology hub, beach hotels and an airport.

Sources familiar with Hamas said the group had only lost a few thousand fighters in the Gaza war, in which more than 48,000 people have been killed, according to Palestinian health officials.

Israeli officials say around 20,000 Hamas fighters have been killed and the group has been destroyed as an organised military formation.