The Trump administration has rejected an Arab-backed Gaza reconstruction plan, instead advocating for a proposal that would see Palestinians removed and the territory transformed into a US-controlled resort area.

Axar.az, citing CNN, reports that the Arab plan, led by Egypt, calls for Hamas to cede control to a temporary administration before a reformed Palestinian Authority (PA) assumes governance.

The proposal includes a $53 billion initiative to rebuild Gaza by 2030, involving infrastructure projects and tourism development.

While the PA has pledged elections across Palestinian territories, Israeli Prime Minister Netanyahu has endorsed Trump’s vision for Gaza but remains vague on governance. The plan's regional support is uncertain, as key Gulf leaders were absent from discussions. Meanwhile, Hamas has refused to disarm, calling its weapons a "red line."

The current ceasefire in Gaza is under strain, with Israel blocking aid to pressure Hamas into accepting an alternative US ceasefire proposal.

This has drawn international criticism, with human rights groups condemning the move as a violation of international law. Egyptian President el-Sissi has reiterated that true peace is unattainable without Palestinian statehood, a notion Israel’s government largely opposes.