According to a joint report prepared by the United Nations (UN), the World Bank and the European Union (EU), the cost of reconstruction and recovery in the Gaza Strip has reached $71.4 billion. The report stresses that $26.3 billion of this cost, covering a ten-year effort, must be urgently funded within the first 18 months to restore basic services and repair infrastructure.
The overall cost includes $35.2 billion in direct physical damage and $22.7 billion in economic and social losses resulting from the complete halt of production activities. The highest repair requirement is in the housing sector at $16.2 billion, as more than 371,000 homes have been fully or partially destroyed. This figure accounts for over 81 percent of all buildings in Gaza.
In trade and industry, losses amount to $8.8 billion, while the health sector requires $8.2 billion as more than half of hospitals are out of service. Repairing the transportation infrastructure carries a bill of $4.4 billion.
The picture is even more severe in service infrastructure: 90 percent of schools and universities, 90 percent of the water network and treatment plants, and 85 percent of the electricity grid have been rendered inoperable. This destruction shows that recovery will only be possible through the reconstruction of all life-supporting infrastructure from scratch.
Speaking to Al Jazeera, Naci Sarhan, a Gaza reconstruction expert and former Undersecretary of the Ministry of Public Works and Housing, pointed out that the current cost is roughly seven times the total reconstruction spending following all of Israel's wars over the past two decades. Recalling that the highest cost after the 2014 war was $5 billion, Sarhan said, 'More than 80 percent of the elements of life in Gaza have been destroyed.'
Sarhan argued that Israel is pursuing a policy of 'collective destruction and creating an unlivable environment to force the population into displacement.' On financing, he noted that international and regional efforts are necessary, with the historical aid roles of the Gulf Cooperation Council countries being of key importance. He stated that the $26 billion needed for the first 18 months is not excessively high when compared to the sovereign budgets of brotherly countries.
Touching on the legal dimension, Sarhan said that as the occupying power, Israel is obligated to pay the bill for this destruction, but due to the lack of binding mechanisms in international law, Tel Aviv cannot be forced to assume this responsibility. He stressed that in this situation, the burden falls on donor countries and the Peace Council, and that the pledges announced in political agreements must be turned into actual funds as soon as possible.
Sarhan added that the biggest obstacle to implementation is not a lack of local expertise, but insufficient funding and the failure to open border crossings for the entry of construction materials and heavy equipment, and that a strict management and oversight structure is essential to preserve and efficiently use resources.
