A Gaza firm has been contracted to build an Emirati-funded compound for tens of thousands of displaced Palestinians in an area under Israeli military control, two Israeli officials and two Palestinian businessmen told Reuters.
The plan for a Palestinian contracting company staffed by Gaza workers to build the compound has not been previously reported.
It appears to signal an effort to begin reconstruction without waiting for Israel to withdraw from Gaza, a step meant to accompany the disarmament of Hamas fighters in the next phase of a ceasefire under U.S. President Donald Trump’s plan.
Employing Palestinians in construction could help reduce local hostility to the project. It remains unclear, however, whether large numbers of Palestinians would agree to live or work in an area held by the Israeli military.
The United Arab Emirates has not formally announced the housing project, dubbed by some diplomats as “Emirates City.” According to a planning map seen by Reuters, the compound would be built near Rafah on Gaza’s southern edge, an area largely depopulated and demolished by Israeli forces during the war with Hamas.
Gaza reconstruction in Trump’s plan to end war
The four sources identified the firm as Gaza-based Masoud & Ali Contracting Co. (MACC), which has led large-scale projects in Gaza and the Israeli-occupied West Bank for decades.
One Palestinian businessman with direct knowledge of the plan said MACC would partner with two Egyptian firms to build the compound. He described the project as covering about 74 acres and capable of housing tens of thousands of people in prefabricated, trailer-style units stacked several stories high.
All four sources spoke on condition of anonymity because the plans have not been made public.
MACC declined to comment. The Israeli military did not immediately respond to a request for comment, nor did Hamas spokespeople.
A UAE official did not comment directly on the project but said the country is “firmly committed to supporting all international relief and recovery efforts in Gaza, in close collaboration with partners, to ensure that life-saving assistance reaches those in need swiftly and effectively.”
Since Israel and Hamas reached a ceasefire in October, Israel has retained control of 53% of Gaza, where many buildings have been demolished and military fortifications constructed. Gaza’s more than 2 million residents are largely confined to a remaining coastal strip under Hamas control, most living in makeshift tents or damaged buildings.
Reconstruction in Gaza, beginning in Rafah, is a central element of Trump’s plan to end the war. Other key steps — including Hamas’ disarmament and an Israeli withdrawal — have yet to be agreed.
Trump’s initiative is being overseen by his Board of Peace, a group of international leaders supervising a Gaza-specific body of officials and business figures, along with a Palestinian technocratic committee intended to assume governance from Hamas.
The UAE last week pledged $1.2 billion for Gaza at a Board of Peace conference, though the housing compound was not included in presentations on reconstruction.
A U.S. official previously told Reuters that the UAE was coordinating with Washington, the Board of Peace and the Palestinian technocratic committee on the project.
The UAE has been one of the largest donors to Gaza since the war began in October 2023, providing nearly $3 billion in assistance, according to its foreign minister. It established formal ties with Israel in 2020 under a U.S.-brokered agreement.
‘More acceptable to Gazans’
The Palestinian businessman familiar with the plans said MACC and the two Egyptian firms had been contracted by a large Egyptian company to carry out the project in Gaza. He declined to name the Egyptian company, saying it would ultimately be paid by the UAE.
No construction has begun, partly because Israel has not yet approved the plans, he said.
A Western diplomat briefed on the project said contractors were scheduled to visit the site earlier this month, though it was unclear whether the visit took place.
According to its website, MACC has built desalination plants, water pumping stations, solar energy fields, bridges and buildings across Gaza and the West Bank, with funding from partners including the World Bank and USAID.
Reham Owda, a Palestinian political analyst, said using a Palestinian firm rather than bringing in foreign workers would be “more acceptable to Gazans” because it would create jobs and take local culture into account.
“It will gain wide acceptance because it will help solve the housing crisis, accelerate reconstruction and employ Gaza’s workforce,” she said.