An Arab summit draft communique on Tuesday endorsed a $53-billion plan by Egypt for Gaza's future and urged the international community and financial institutions to swiftly support its implementation.
Egypt's Gaza reconstruction plan "would require arrangements for transitional governance and security that preserve the prospects of a two-state solution," according to the state-affiliated Al-Qahera News channel.
"The two-state solution is the optimal solution from the perspective of international law and the international community," the plan says.
It stresses that "Gaza is an integral part of the Palestinian territories," the channel added.
The plan for Gaza counters U.S. President Donald Trump's ambition for a Middle East Riviera in the enclave.
Trump enraged the Arab world by declaring unexpectedly that the United States would take over Gaza, resettle its over 2-million Palestinian population and develop it into the "Riviera of the Middle East."
"Attempts to strip the Palestinian people of hope for statehood or seize their land will only lead to further conflicts and instability," the Arab plan warns.
It also calls for "the necessity of maintaining the cease-fire in the Gaza Strip."
According to the channel, the Egyptian plan "will take three years to implement and includes early recovery programs and reconstruction efforts running in parallel, while advancing toward a two-state solution as part of a political resolution."
The plan also calls for "the establishment of a buffer zone after debris removal and the construction of 20 temporary housing areas with the participation of Egyptian and foreign companies."
It also includes the formation of a Gaza administration committee to run the enclave for a six-month transitional period. This committee will be independent and composed of non-partisan "technocrats" operating under the umbrella of the Palestinian government.
Arab leaders were meeting in Cairo on Tuesday to endorse the counterproposal at a summit hosted by Egyptian President Abdel-Fattah el-Sissi.
It is expected to include the leaders of regional heavyweights Saudi Arabia and the United Arab Emirates, whose support is crucial for any postwar plan.
Israel has meanwhile embraced what it says is an alternative U.S. proposal for the cease-fire itself and the release of hostages taken in Hamas' Oct. 7, 2023, attack that triggered the war.
It has blocked the entry of food, fuel, medicine and other supplies to Gaza to try to get Hamas to accept the new proposal and has warned of additional consequences, raising fears of a return to war.
The suspension of aid drew widespread criticism, with human rights groups saying it violated Israel's obligations as an occupying power under international law.
The new plan would require Hamas to release half its remaining hostages – the resistance group's main bargaining chip – in exchange for a cease-fire extension and a promise to negotiate a lasting truce. Israel made no mention of releasing more Palestinian prisoners – a key component of the first phase.
According to Egypt's postwar plan, Palestinians would be relocated to safe areas inside Gaza equipped with mobile homes while its cities are rebuilt. Hamas would cede power to an interim administration of political independents until a reformed Palestinian Authority can assume control.
Palestinian President Mahmoud Abbas, head of the Western-backed authority and an opponent of Hamas, was attending the summit.
Israel has ruled out any role for the Palestinian Authority in Gaza and, along with the United States, has demanded Hamas' disarmament. Hamas, which does not accept Israel's existence, has said it is willing to cede power in Gaza to other Palestinians but will not give up its arms until there is a Palestinian state.
