Post-war construction and reconstruction in Gaza pose one of the greatest humanitarian and economic challenges within the Strip. After the extensive destruction wrought by the genocidal war, thousands of families face challenges to restore life despite the loss of shelter and the collapse of infrastructure.
Challenges facing the reconstruction process in Gaza
The reconstruction of the Gaza Strip is one of the most complex and pressing issues at the regional and international levels since the outbreak of the last war. More than two million Palestinians are facing near-total destruction of residential buildings, vital facilities, and health and education institutions, transforming the Strip into the world’s largest rubble area.
The political framework is crucial in determining the feasibility and success of reconstruction projects, as repeated cycles of war and subsequent problems of sovereignty and responsibility for managing the sector have created a complex reality that hinders structural efforts. The close correlation between reconstruction and political and security understandings makes any reconstruction project liable to be frozen or destroyed again in the event of renewed confrontations.
Material losses in the Gaza Strip exceeded $70 billion as of mid-2025, with about 90% of residential buildings destroyed and 80-95% of health and education facilities and vital service networks such as water, electricity, sewage and roads destroyed. The war has displaced nearly 1.9 million people – 90% of the population – most of whom live in makeshift camps that lack basic necessities amid deteriorating health conditions and harsh weather conditions.
The amount of debris is estimated at more than 55 million tonnes (up to 61 million tonnes), requiring more than two decades to be cleared at a cost of more than $1.2 billion, not counting the cost of clearing mines and unexploded ordnance and the associated human risks.
Read more: Impact of shelling on the environment in Gaza
On the economic front, the sector has seen an unprecedented collapse, with GDP falling by 81% in the first quarter of 2024 and its contribution to the Palestinian economy falling from an average of 17% to less than 5%. The agriculture, industry, trade, construction and services sectors contracted sharply, unemployment rose to about 70%, and poverty reached 90%. More than 200,000 workers lost their jobs and workers’ daily income fell by more than 80 percent, while the consumer price index rose more than 250 percent as a result of supply chain disruption and commodity scarcity.
Funding needs for reconstruction are divided into three main phases:
- Emergency relief and temporary recovery at an estimated cost of $3.5 billion to $5 billion.
- The phase of removal of debris and waste at a cost of $1.2-1.5 billion.
- The overall reconstruction phase of infrastructure, institutions and economic projects at an estimated cost of $65-70 billion over two decades.
72% of the total cost is expected to go to housing projects, 19% to public infrastructure (water, electricity, health, education), and about 10% to the agricultural and industrial sectors. The plan includes improving energy independence and providing safe drinking water after the destruction of 80-96% of water sources and nearly 600 water and sanitation facilities.
Currently, more than 60% of Gaza’s population is dependent on food aid, while local businesses are suffering from accumulated losses due to the destruction of their facilities and preventing the entry of equipment and raw materials. However, the Palestinian Federation of Industries confirms the readiness of the private sector to participate actively in reconstruction projects once the restrictions are lifted and the crossings opened.
Added to this is the extremely serious field challenge of hundreds of thousands of unexploded ordnance and mines, which directly impedes rubble removal and reconstruction and calls for advanced international expertise and techniques and substantial financial resources. This reality also threatens to spread epidemics and diseases within overcrowded displacement camps, making reconstruction a complex task that requires broad coordination and serious international political will.
Read more: Reconstruction in Gaza: Challenges and opportunities
Importance of funding reconstruction projects in Gaza
Reconstruction and reconstruction projects in Gaza are a key pillar of humanitarian and economic recovery after years of destruction and blockade. Funding for these projects is not limited to rebuilding destroyed infrastructure, but extends to reviving the local economy, creating new jobs, and enabling families to restore minimum living stability. The funding also contributes to the restoration of vital services such as water, electricity, hospitals and schools, gradually restoring normality.
