Gaza Reconstruction to Cost $53 Billion

A new assessment by the United Nations, the European Union, and the World Bank estimates that rebuilding Gaza after a 15-month war between Israel and Hamas will require over $53 billion.

The preliminary damage and needs assessment for Gaza and the West Bank highlights the scale of destruction and the extensive resources needed for recovery.

According to the report, $53.2 billion will be necessary for reconstruction and recovery over the next ten years, with $20 billion required within the first three years.

The assessment, covering data from October 2023 to October 2024, examines the extent of economic damage, losses, and essential recovery efforts across nearly all sectors of the Palestinian economy.

Israel launched its military campaign in Gaza following Hamas’s surprise attack on October 7, 2023, which resulted in the deaths of 1,200 people and the capture of over 250 hostages, according to Israeli statistics.

In contrast, health officials in Gaza report that the war has claimed over 48,000 lives and left the region in ruins.

Rebuilding the enclave will take years, with efforts needed to clear unexploded ordnance and millions of tons of debris.

The report, released amid a fragile ceasefire that began last month, warns that large-scale recovery and reconstruction efforts cannot begin until governance and security arrangements for post-war Gaza are clarified.

More than 292,000 homes have been either destroyed or severely damaged, while 95 percent of hospitals are no longer operational.

The war has also devastated Gaza’s economy, which has shrunk by 83 percent, reducing its overall contribution to the Palestinian economy to just 3 percent, despite being home to 40 percent of the population in Palestinian territories.

The West Bank economy is also struggling and is expected to contract by 16 percent in 2024.

More than half of the total reconstruction costs—about $29.9 billion—will be required to repair damage to buildings and infrastructure, including housing, with an estimated $15.2 billion needed solely for rebuilding homes.

An additional $19.1 billion will be required to compensate for economic and social losses, including destruction in the health, education, trade, and industrial sectors.

Economic activity in Gaza has almost entirely halted, and inflation has soared, with prices in the enclave increasing by more than 300 percent in one year. Food prices alone have surged by 450 percent.

The report, jointly prepared by the World Bank, the UN, and the EU, outlines a roadmap for phased recovery efforts and their associated costs in both the short and medium term.