Trump presents his plan for the ‘new Gaza’ in Davos: skyscrapers, tourism and reconstruction with no timetable

A slide titled New Gaza is seen on a screen during an event announcing the letter of the Peace Initiative from the Board of Directors of US President Donald Trump, aimed at resolving global conflicts, alongside the 56th annual World Economic Forum (WEF) in Davos, Switzerland, on 22 January 2026. - REUTERS/DENIS BALIBOUSE

The urban development project, defended by Jared Kushner at the World Economic Forum, promises to transform the Strip into a high-value economic enclave

  1. Presentation of Trump's plan and arguments
  2. Economic objective and urban design
  3. Phases, investment and growth targets
  4. Security conditions and Israel's reactions
  5. Responses from Hamas, the Palestinian Authority and the UN
  6. Developments on the ground and next steps

With the Peace Board on track, the Donald Trump administration unveiled its urban development plan to rebuild the Gaza Strip, which it called the ‘new Gaza,’ in Davos, Switzerland, after nearly three years of military conflict.

However, this plan, like the Peace Board presented on the same day, has raised concerns. This is particularly due to its dubious political viability, the lack of security guarantees for the Palestinian population and the persistent violence in the region, which raises serious doubts about its implementation.

Attendees listen as US President Donald Trump speaks during the announcement of the charter for his Peace Board initiative aimed at resolving global conflicts, alongside the 56th annual World Economic Forum (WEF) in Davos, Switzerland, on 22 January 2026. REUTERS/JONATHAN ERNST

Presentation of Trump's plan and arguments

The proposal was presented by Jared Kushner, the US president's son-in-law and real estate entrepreneur, at the World Economic Forum. This coincided with the formation of the Peace Board, the body created by Washington to oversee the ceasefire in Gaza and other regional conflicts. Trump defended the project by referring to his experience as a real estate developer.

‘Look at this location by the sea. Look at this beautiful property, it is unique and has an architectural quality that is not often seen. Its grand design style sets it apart and I am sure it will appeal to many. Gaza could have extraordinary potential if it were really well managed,’ Trump said during his speech presenting the reconstruction plan.

Economic objective and urban design

The White House's objective is to transform this territory, so that an area that is currently devastated becomes an economic opportunity. This is an idea that Washington already hinted at months ago when it announced its intention to create the ‘Gaza Riviera’, something like a Caribbean-style holiday resort.

During the presentation, the slides shown by Kushner depicted the total transformation of the Palestinian enclave that the American government desires. They showed skyscrapers for housing and hotels facing the sea, well-designed new cities, data centres and beach resorts. ‘At first we thought of a free zone, then an area for Hamas. Then we said: let's plan for resounding success,’ Kushner said.

Jared Kushner, son-in-law of US President Donald Trump, participates in an announcement of the Charter of the US President Donald Trump's Peace Initiative, aimed at resolving global conflicts, alongside the 56th annual World Economic Forum (WEF) in Davos, Switzerland, on 22 January 2026. - REUTERS/DENIS BALIBOUSE

Phases, investment and growth targets

The overall plan for the Strip, home to around two million people, most of them internally displaced, would be carried out in four stages. The proposal states that the first phase would begin in Rafah, in the south, and end in Gaza City.

The project requires a minimum investment of $25 billion and, according to Trump's team, could raise Gaza's GDP to $10 billion and reach a valuation of $200 billion by 2035, in addition to creating more than 500,000 direct jobs.

Security conditions and Israel's reactions

Kushner maintained his position that ‘there is no plan B,’ linking any progress to the total disarmament of Hamas, which makes things more difficult. ‘Without total security, lasting reconstruction is not possible,’ Kushner said. From Israel, Prime Minister Benjamin Netanyahu expressed a cautious reception to the proposal, reaffirming that security is and will remain the essential priority.

‘Israel will not allow any reconstruction that serves to allow Hamas to rearm or threaten our citizens again,’ Netanyahu clarified. Israel is clear that any reconstruction initiative must include strict and verifiable security controls. This is a priority for the government.

Israeli Prime Minister Benjamin Netanyahu attends a press conference with US President Donald Trump after meeting at Trump's Mar-a-Lago club in Palm Beach, Florida (USA), on 29 December 2025 - REUTERS/JOHATHAN ERNST

Responses from Hamas, the Palestinian Authority and the UN

Hamas, for its part, flatly refused. A representative of the Islamist movement described the proposal as a ‘real estate fantasy’ built on the blood of the Palestinian people. He said that, in his view, the project does not take into account the will of the people or their right to decide on their territory. The accusation against Washington was clear: attempting to ‘redefine Gaza without consulting its inhabitants or respecting their national rights’.

The Palestinian Authority also expressed its opinion. A senior official in Ramallah pointed out that ‘reconstruction will not be legitimate if there is no political framework that recognises Gaza as a necessary part of a future Palestinian state.’ He added that ‘no plan that does not take into account property rights, compensation for victims and the safe return of displaced persons will succeed.’

The United Nations also expressed its concern. Secretary-General António Guterres insisted that the reconstruction of Gaza must be based on international law. ‘Reconstruction cannot be imposed from outside, nor can it be disconnected from a just and lasting political solution. Gaza needs peace, as well as dignity and self-determination, not just new buildings,’ his spokesperson said.

US Secretary of State Marco Rubio participates in an announcement of the charter for President Donald Trump's Peace Board initiative aimed at resolving global conflicts, alongside the 56th annual World Economic Forum (WEF) in Davos, Switzerland, on 22 January 2026 - REUTERS/DENIS BALIBOUSE

Developments on the ground and next steps

The Davos statement came at the same time as Ali Shaath, who heads the Washington-backed Palestinian technocratic committee to manage the Strip under Trump's plan, announced that the Rafah crossing with Egypt will soon reopen. The opening of this crossing represents a major change for Gaza, because it means that it will no longer be an isolated territory, nor will it be trapped.

Even so, on the ground, the situation is highly unstable. Israel continues to carry out air and artillery strikes while accusing Hamas of violating the ceasefire. In recent days, dozens of Palestinians, including civilians and reporters, have lost their lives.

While skyscrapers and seafront avenues are being planned in Davos, Trump's ‘new Gaza’ faces a reality marked by destruction, political mistrust and a conflict that is still far from being resolved.