A Compelling Case for Gulf States to Lead Gaza’s Reconstruction and Support a Two-State Solution
The ongoing crisis in Gaza and the broader Palestinian territories demands a bold, transformative approach to achieve lasting peace and stability. The Gulf States—Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, Bahrain, and Oman—are uniquely positioned to lead the reconstruction of Gaza and support a revitalized Palestinian Authority (PA) in pursuit of a two-state solution. Their vast wealth, shared Islamic faith, firm stance against Hamas and terrorism, and proven expertise in nation-building make them ideal partners to rebuild, repair, and remake Palestine, addressing the region’s persistent challenges.
Someone needs to convince Israel’s Benjamin Netanyahu.
🚨Israel blocks Saudi-led foreign ministers delegation from visiting Palestinian Authority. My story on @axioshttps://t.co/kA4kKnt7Kg
— Barak Ravid (@BarakRavid) May 30, 2025
1. Unmatched Financial Capacity to Fund Reconstruction
The Gulf States possess unparalleled financial resources, with sovereign wealth funds and oil revenues totaling trillions of dollars. Saudi Arabia’s Public Investment Fund alone holds over $700 billion in assets, while Qatar and the UAE manage similarly massive reserves. Gaza’s reconstruction, estimated to cost $50–100 billion due to decades of conflict and recent devastation, is a monumental task that requires sustained investment. The PA, crippled by a reported 70% cut in USAID funding (per an unverified X post), faces a financial crisis that threatens its ability to govern in the West Bank and maintain its limited presence in Gaza. Western aid has proven inconsistent, with U.S. support curtailed by legal and political constraints like the Anti-Terrorism Clarification Act. The Gulf States can fill this gap, providing the capital needed to rebuild infrastructure, housing, schools, and hospitals in Gaza while stabilizing the PA’s budget in the West Bank.
By investing in Gaza’s reconstruction, Gulf States can create economic opportunities, reduce poverty, and counter the despair that fuels extremism. Their financial commitment would also signal a shift from Western-dominated aid models, fostering a sense of regional ownership over the Palestinian cause—a cause deeply rooted in Arab solidarity.
2. Shared Islamic Faith as a Unifying Force
As Muslim-majority nations, the Gulf States share a religious and cultural bond with Palestinians, 99% of whom are Muslim. This shared faith positions them as credible stewards of Gaza’s revival, particularly in restoring religious and cultural sites like mosques and community centers damaged in conflicts. Saudi Arabia, as the custodian of Islam’s holiest sites, carries unique moral authority to lead humanitarian efforts rooted in Islamic values of charity and justice. Qatar, already a significant donor to Gaza through its support for infrastructure and humanitarian aid, can expand its role to align with a broader vision of Palestinian statehood.
This religious alignment allows Gulf States to engage Palestinian communities with legitimacy that Western donors often lack. By framing reconstruction as an Islamic duty, they can rally public support within their own nations and across the Muslim world, ensuring sustained commitment to Palestine’s future.
3. Zero Tolerance for Hamas and Terrorism
The Gulf States, particularly Saudi Arabia, the UAE, and Bahrain, have a staunch anti-terrorism stance, viewing Hamas—designated a terrorist organization by the U.S., EU, and Israel—as a destabilizing force. Unlike the PA, which relies on international aid and cooperates with Israel on security, Hamas funds its militant activities through Iran, Qatar, and private networks, rejecting negotiations for a two-state solution. The Gulf States’ opposition to Hamas aligns with their broader goal of countering Iran’s influence in the region, as Hamas’s ties to Tehran threaten Gulf security interests.
By leading Gaza’s reconstruction, Gulf States can marginalize Hamas’s influence. A rebuilt Gaza under PA governance, supported by Gulf funding and oversight, would prioritize stability and development over militancy. The UAE and Bahrain, having normalized ties with Israel through the Abraham Accords, are well-positioned to mediate a framework where reconstruction aligns with a two-state solution, ensuring that funds are not diverted to Hamas’s military wing. Their experience in countering extremist ideologies can also guide deradicalization efforts, fostering a Palestinian society focused on peace and prosperity.
4. Expertise in Nation-Building
The Gulf States have a proven track record in nation-building, transforming desert landscapes into global hubs like Dubai, Abu Dhabi, and Doha. The UAE’s development of world-class infrastructure, Qatar’s hosting of the 2022 FIFA World Cup, and Saudi Arabia’s Vision 2030 projects demonstrate their ability to execute ambitious, large-scale initiatives. Gaza’s reconstruction requires similar expertise in urban planning, energy, water management, and economic diversification—areas where Gulf States excel.
For example, the UAE’s Masdar initiative could bring renewable energy to Gaza, addressing chronic power shortages. Qatar’s experience in building modern infrastructure could guide the creation of ports, roads, and industrial zones, creating jobs and reducing Gaza’s 50% unemployment rate. Saudi Arabia’s NEOM project showcases its capacity to integrate technology and sustainability, offering a model for Gaza’s redevelopment as a viable economic hub within a future Palestinian state.
5. Advancing a Two-State Solution
The Gulf States’ involvement in Gaza and Palestine aligns with their strategic interest in regional stability and a two-state solution. The PA, despite its challenges—corruption allegations, no elections since 2006, and financial dependence—remains the internationally recognized body for Palestinian governance. Supporting the PA’s revival in Gaza, where Hamas currently dominates, and strengthening its authority in the West Bank can pave the way for a viable Palestinian state alongside Israel. The Gulf States’ diplomatic ties with Israel (via the Abraham Accords for the UAE and Bahrain) and their influence in global forums position them to broker negotiations, ensuring that reconstruction efforts align with peace talks.
The Abraham Accords—in English, Hebrew, and Arabic—have been signed! 🇺🇸 🇮🇱 🇧🇭 🇦🇪 pic.twitter.com/ho3cb28WhD
— The White House 45 Archived (@WhiteHouse45) September 15, 2020
By investing in Palestine, Gulf States can counter Iran’s influence through Hamas, strengthen moderate Palestinian leadership, and promote a model of governance that prioritizes development over conflict. This aligns with their broader vision of a stable Middle East, where economic prosperity and diplomatic cooperation reduce the appeal of extremism.
Palestinian clans are looking to join the Abraham Accords. Economy Minister @NirBarkat tells me why they’re turning their backs on Hamas after Oct. 7.
— Zvika Klein צביקה קליין (@ZvikaKlein) May 24, 2025
Watch our conversation from the @Jerusalem_Post conference in NYC pic.twitter.com/xLhbmn5oBV
A Call to Action
The Gulf States have the wealth, shared faith, anti-terrorism resolve, and nation-building expertise to transform Gaza and support a revitalized PA. By leading reconstruction efforts and championing a two-state solution, they can address the root causes of instability in Palestine, marginalize Hamas, and assert regional leadership. The PA’s financial crisis, exacerbated by USAID cuts, is a critical opportunity for Gulf States to step in, replacing inconsistent Western aid with a sustainable, Arab-led initiative. Their involvement would not only rebuild Gaza’s shattered infrastructure but also restore hope for a peaceful, prosperous Palestinian state, serving as a cornerstone for lasting regional peace.