Israeli officials looking for ways to benefit economically from Gaza reconstruction

The Ashkelon power plant is seen beyond the northern Gaza town of Beit Hanoun in December 2025

Yaniv Kubovich reports in Haaretz on 4 February 2026:

Israeli officials have been examining potential economic opportunities tied to the reconstruction of postwar Gaza, as discussions advance on the Strip’s rehabilitation and the possible role of an international civil administration, Haaretz has learned.

Senior Finance Ministry officials have recently explored these economic options in discussions with senior Israeli army officers, including the possibility of constructing a highway in Israel that would improve access to the Strip.  It was also suggested that countries seeking access to Gaza from Israel will provide funding for highway construction in Israel, including the southern Route 232, which runs along the Gaza border, to provide access for Palestinians traveling between the Strip and the West Bank. This might also include improved access for laborers from Gaza working in Israel, although the prospect for that still appears far off.

Among other potential economic opportunities, Israeli officials are also considering increasing the supply of electricity to Gaza. Donor countries involved in the Strip’s reconstruction are currently weighing plans to build a power plant in Egypt to supply Gaza, or alternatively to construct a large plant within the Strip.

The latter option would give Gaza’s governing authorities an independent power source, but because it could come under Hamas control, Israel is examining a third scenario: supplying electricity directly to Gaza.

In return, Israel would receive the support of donor countries to expand its power plant in Ashkelon, just north of the Gaza border, and in the process also boost power supplies to all Israelis.

At the International Civil-Military Coordination Center in Kiryat Gat, southern Israel, headquarters for representatives from at least 28 countries, six working groups have been established to plan Gaza’s reconstruction. They include teams focused on stabilization, security, intelligence, humanitarian assistance, civil administration and engineering, each with an Israeli representative.

According to the IDF, Israel recently approved the start of construction for a new neighborhood in northeastern Rafah, on Gaza’s border with Egypt, funded by the United Arab Emirates. The neighborhood is expected to house around 25,000 residents.

Israeli army officials said the UAE has already provided funding to clear military and construction debris from the site, a complex process expected to take several weeks.

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