Donors Hold Back On U.S.-Led Gaza Reconstruction Plan As Hamas Disarmament Stalls, Sources Say

JERUSALEM, Feb 4 (Reuters) - The United States has not yet secured pledges for its proposed Gaza reconstruction plan as prospective donors express reluctance while talks on Hamas disarmament remain stalled, sources told Reuters.

The Trump-era blueprint conditions large-scale rebuilding on the disarmament of Hamas and envisages a U.S.-chaired "Board of Peace" to oversee reconstruction. While the Rafah crossing with Egypt briefly reopened this week — a limited operational boost — officials close to Hamas say the group has not begun the disarmament discussions that would precede major rebuilding work.

Funding Hold-Up

Two people with direct knowledge of the Board's preparations told Reuters that many countries are unwilling to commit funds until they see tangible progress on disarmament and assurances that reconstruction money will not be funneled into areas that remain militarised.

"Countries want to see the funding will go for reconstruction within demilitarized places, and not to throw the money into another war zone," one source said. "If we pass that obstacle, then funding will not be an issue."

Seven Western diplomats, speaking to Reuters, added that some potential donors also prefer reconstruction funds to be managed by the United Nations rather than by the proposed Board of Peace. That demand has contributed to delays and meant no date has been fixed for the Washington funding event that organizers had discussed.

Scale, Priorities And Private-Sector Interest

Diplomats and sources estimate the potential reconstruction bill at roughly $100 billion. The "New Gaza" concept presented by Jared Kushner at Davos includes ambitious plans such as seafront residential towers, data centres and industrial parks, though it does not include compensation for Palestinians who lost homes and leaves questions about land rights unresolved.

Alongside governments, private-sector donors are being courted. One Board planner said private financing will be difficult to secure without measurable progress toward disarmament and proposed "peace area pricing" — adjusting financing costs to reflect local security risks.

Immediate operational tasks cited by sources include clearing an estimated 68 tonnes of rubble and war debris. The Board has reportedly been in talks about awarding rubble-clearing contracts, with the longer-term aim that a Palestinian technocratic body will manage tenders under Board oversight.

Security And Political Concerns

After a two-year Israeli campaign that devastated much of Gaza and weakened Hamas, Western intelligence sources still estimate the group holds hundreds of rockets and thousands of light weapons. Israeli officials say they do not expect Hamas to disarm voluntarily and that the military is preparing for the possibility of renewed large-scale operations.

Hamas has said it is willing to discuss disarmament with other Palestinian factions, but two Hamas officials told Reuters that neither Washington nor regional mediators have yet presented a detailed disarmament proposal to the group.

Diplomatic Responses

A senior European diplomat told Reuters that no European or Western government had yet committed funds, citing fiscal constraints and rising domestic opposition to foreign aid spending in some countries. Wealthy Gulf states have also expressed hesitation about financing reconstruction without a broader political settlement that includes disarmament.

Representatives for the Board of Peace and the Palestinian technocratic committee did not immediately respond to requests for comment.

(Editing by William Maclean)