UAE Plans to Fund First Residential Complex in Rafah Under Israeli Control
The British newspaper “The Guardian” revealed in a report plans by the United Arab Emirates to fund a planned residential community on the outskirts of the devastated city of Rafah, in southern Gaza Strip, in a move considered the first of its kind for an Arab reconstruction project in areas under Israeli control.
According to planning documents and sources familiar with the talks at the US-led Civil Military Coordination Center (CMCC) in Israel, Palestinian residents will have access to basic services including education, healthcare, and water, provided they submit to biometric data collection and security vetting. This project comes within the framework of a peace agreement mediated by US President Donald Trump, whereby Gaza was divided into two zones: a green zone under Israeli control, and a red zone subject to Hamas control. Initial reconstruction efforts are scheduled to focus on areas under Israeli control.
The plans include building permanent housing units and educational and health facilities in the city that will be called “New Rafah.” An Israeli military spokesman confirmed that land preparation work at the site has already begun, while confirming that Israel is not participating in the construction or management of the complex. The plan to establish the residential complex has received approval from Israeli authorities, with Israeli forces present on the ground during the construction phase.
This project represents the UAE’s first investment in a post-war reconstruction project located in the part of Gaza currently held by Israel, noting that the UAE has contributed more than $1.8 billion in humanitarian aid to Gaza since October 7, 2023, making it Gaza’s largest humanitarian donor. The project falls within the framework of the US-led Peace Council, an entity established to oversee Gaza reconstruction efforts. According to a US official, the first residential complex may serve as a model for other communities described as “alternative safe communities.”
In the context of limiting Hamas’ influence in the Strip, the proposed plans include introducing electronic shekel wallets to reduce money transfers to Hamas, and adopting educational curricula not linked to the movement. This approach aims to control financial and educational channels as part of a broader strategy to reshape the political and social environment in the Strip.
According to Médecins Sans Frontières (Doctors Without Borders), 92% of housing units and 70% of all facilities in Gaza were destroyed or damaged during more than 15 months of war. The city of Rafah remains unsafe for return due to massive destruction and the presence of unexploded ordnance scattered in the rubble, making the need for reconstruction projects urgent and necessary.
However, the project faces several challenges and concerns, most notably the need to examine Palestinians’ private property rights and consider compensation mechanisms for landowners, in addition to concerns about residents’ ability to leave the complexes after moving in and their freedom of movement. The absence of consultation with Palestinians in planning their future also raises significant concern, as these arrangements are viewed as placing Palestinians within a colonial hierarchical structure without real sovereignty or control over decisions.
This project comes within a broader plan presented by Jared Kushner, President Trump’s son-in-law, at the World Economic Forum in Davos, which includes building more than 100,000 permanent housing units, 200 schools, and more than 75 medical facilities. The UAE has not officially commented on plans to fund the project or its support for the Peace Council, while questions continue about the extent of Palestinian acceptance of these projects and their impact on their right to return to their original homes.
