Rebuilding Gaza to its prewar state will cost upwards of $71 billion over five years, according to a recent report by the World Bank, United Nations and European Union, the first such assessment of the damage caused to the enclave afteran October ceasefire halted two years of war there. The sweeping report, which is more highly detailed than previous assessments conducted during the war, found that the war caused $35.2 billion in physical damage, and it put economic losses — including lost income, displacement-induced costs and more — at an estimated at $22.7 billion. The total is some $5 billion higher than the last Rapid Damage and Needs Assessment, or RDNA, reported by the World Bank, UN and EU as of October 2024.
Reconstruction in the Strip is largely at a standstill due to the lack of progress toward phase two of the US peace plan, which envisioned the ceasefire reached on October 9, 2025, leading to a transition that will end the Hamas terror group’s rule of the Strip. The Israel Defense Forces continues to hold over 50 percent of the enclave’s territory, and has refused to allow most heavy equipment into the part of the Strip outside of its control — where nearly all Gazans now live — without Hamas first disarming under the plan.
“Economically, the situation in Gaza has not changed since the ceasefire until now,” said Saif al-Din Odeh, an economist based in Gaza who previously worked for the Palestinian Monetary Authority, on the stagnation in the Strip over the past six months. The study, published April 20, outlines a three-phase reconstruction plan aimed not only at restoring prewar conditions but also at improving governance and service delivery, starting with a focus on food assistance, temporary housing, temporary learning spaces, and field hospitals over the first year and a half. It envisions large-scale rebuilding of housing, healthcare, and education systems over the next 18 months, followed by a two-year process centered on modernization of housing, the health system and education. (Ed note: Who wants to be a construction worker in Gaza with Hamas taking shots at you all day long as you are trying to clean up the mess they created?) (Read More)
