The meeting between Jordan’s King Abdullah II and US President Donald Trump on Tuesday has left the fate of the Gaza Strip hanging in the balance, as the two leaders addressed a deeply contentious proposal that could reshape the future of the region. At the heart of the discussion was Trump’s provocative suggestion that the United States “take over” the Gaza Strip and forcibly expel Palestinians to neighboring countries like Egypt and Jordan. This idea has sparked widespread alarm, not only because it raises the specter of mass displacement but also because it threatens to destabilize an already volatile region. King Abdullah, in an impromptu news conference following the meeting, pushed back against Trump’s plan, emphasizing that Arab nations, including Egypt, were working on an alternative strategy to rebuild Gaza without uprooting its Palestinian population. Egypt, for its part, quickly confirmed that it would present a “comprehensive vision for rebuilding Gaza while ensuring Palestinians remain on their land” at an emergency Arab summit scheduled for February 27. The statement also reaffirmed Egypt’s commitment to collaborating with the US to achieve “a just settlement to the Palestinian issue.” Yet, the stakes for Egypt—and the region as a whole—could not be higher.
For Egypt, the situation is fraught with both political and economic peril. Trump’s threat to freeze aid to Egypt if it does not cooperate with his Gaza takeover plan has put the country in a precarious position. Egypt has long relied heavily on US assistance; since 1946, it has received over $85 billion in bilateral foreign aid, including military and economic support. In 2023 alone, Egypt was the fifth-largest recipient of US foreign aid, receiving $1.45 billion, 85 percent of which was earmarked for the military. This aid is not just financial; it also symbolizes Egypt’s status as a key ally of the United States. Egyptian journalist Hossam El-Hamalawy noted that the aid represents “a statement that Egypt is a close ally and is a partner for Washington,” underscoring the strong political backing Cairo receives from the US. However, Egypt’s dependency on this aid could become a liability if Trump follows through on his threats. With Egypt already grappling with severe economic challenges, including spiraling debt and inflation, the loss of US assistance could have devastating consequences. But Egypt’s dilemma goes beyond economics; it also involves internal political stability. Allowing the expulsion of Palestinians from Gaza could destabilize Egypt’s domestic situation, as the Palestinian issue has long been a rallying cry for Egyptian youth. El-Hamalawy explained that “generation after generation of Egyptian youth have had Palestine as their gateway into politics,” and that any perceived complicity in displacement could ignite widespread outrage.
Moreover, Egyptian President Abdel Fattah el-Sisi is acutely aware of the historical parallels that make him cautious about involvement in such a plan. El-Hamalawy highlighted el-Sisi’s concerns about a scenario akin to the Lebanese civil war, where Palestinian resistance groups operating from Lebanon provided Israel with a pretext to invade and occupy parts of the country for extended periods. The fear is that a similar situation could unfold in Egypt if Palestinian refugees are forced into the country, potentially destabilizing its borders and inviting Israeli intervention. These concerns are compounded by the fact that Egypt has already been treating injured Palestinians in its hospitals since the start of the war in Gaza. While Egypt is willing to continue providing humanitarian assistance, including taking in larger numbers of injured individuals and their families, it is clear that el-Sisi is determined to avoid any actions that could jeopardize Egypt’s security or provoke internal unrest. For now, el-Sisi has reportedly refused to attend any talks at the White House until Trump abandons his displacement plan, signaling that Egypt will not easily capitulate to US pressure.
In the face of Trump’s aggressive proposal, Egypt is left with little choice but to work closely with other Arab states to craft a united counter-proposal. Political analyst Abdallah Nasef suggested that Egypt could follow Jordan’s lead by offering to take in injured individuals and their families, albeit on a larger scale than Jordan’s initial offer of 2,000 sick children. Such a move would allow Egypt to demonstrate its commitment to humanitarian assistance while avoiding the politically risky and morally fraught path of displacement. At the same time, Egypt is likely to position itself as a mediator and political partner in any international effort to address the Gaza crisis. As researcher Jacob Eriksson noted, while Egypt’s economic struggles may limit its ability to contribute financially to Gaza’s reconstruction, its role as a diplomatic intermediary remains crucial. Eriksson expressed doubt about the extent of Egypt’s financial contributions but acknowledged that Cairo would continue to offer its services in facilitating negotiations and implementing any eventual settlement.
The reconstruction of Gaza itself presents another daunting challenge, one that will require massive financial investment and international coordination. Israel has made it clear that it will not compensate Palestinians for the devastation wrought in Gaza or contribute to the reconstruction efforts. Instead, the burden of rebuilding will fall squarely on regional countries and the international community. As El-Hamalawy pointed out, this likely means that Arab nations will need to enlist significant financial support from Gulf states to accelerate the reconstruction process. Egyptian construction companies, for their part, appear ready to play a role in these efforts. Hisham Talaat Moustafa, a prominent figure in Egypt’s real estate and construction sector, has already unveiled a reconstruction plan that would involve upwards of 40 to 50 construction companies from Egypt and other countries. Yet, even with such initiatives, the scale of the destruction in Gaza demands far more resources than Egypt can currently provide. Nasef underscored this reality, noting that Egypt’s economic constraints mean that any meaningful reconstruction effort will have to rely heavily on funding from Gulf nations. The Gulf Cooperation Council has already taken steps in this direction, with its member states collectively donating $650 million in humanitarian aid to Gaza and the occupied West Bank since October 2023. However, the cost of reconstructing Gaza, where the vast majority of buildings and infrastructure have been destroyed, will undoubtedly run into billions of dollars.
As the situation in Gaza remains precarious, with a fragile ceasefire threatening to collapse, Arab countries are under increasing pressure to respond decisively. Trump’s displacement plan has added a new layer of complexity to an already volatile conflict, forcing nations like Egypt and Jordan to navigate a treacherous diplomatic landscape. While Egypt has made it clear that it will not stand idly by as Palestinians are forcibly expelled, its ability to resist US pressure is tempered by its economic vulnerabilities and strategic reliance on Washington. The coming weeks will be critical in determining whether Arab nations can present a united front and secure the funding and political support needed to rebuild Gaza without displacing its people. For now, the fate of Gaza—and the broader region—hangs in the balance, as the world waits to see how this high-stakes drama will unfold.
