Top financial leaders from across the globe pledged this week to support the massive task of rebuilding the Gaza Strip, as the World Bank and the United Nations near completion of a staggering new damage assessment, estimating the reconstruction cost at $70 billion, according to Reuters.
The announcement came during a high-level ministerial meeting of the Development Committee, a joint advisory body to the World Bank and the International Monetary Fund (IMF). The discussion underscored both the urgency and complexity of efforts to restore the war-ravaged territory following a fragile U.S.-brokered ceasefire between Israel and Hamas that ended two years of devastating conflict.
“We deeply appreciate the ceasefire, the return of hostages, and the hope for safe access to food and aid for Palestinians,” said Ngozi Okonjo-Iweala, Director-General of the World Trade Organization, who attended the Thursday session. “We want to help. This must be the path forward, but it will take time.”
She emphasized the committee’s interest in both the reconstruction process and the long-term roadmap toward recovery. The World Bank expressed readiness to work alongside regional actors, humanitarian agencies, and affected populations, while acknowledging that challenges on the ground remain immense.
Despite the ceasefire, United Nations officials warned of logistical nightmares and worsening conditions. Aid convoys struggle to reach northern Gaza due to damaged infrastructure and closed corridors, leaving famine-threatened areas in dire straits.
The UN World Food Programme reports that an average of 560 tons of food aid has been entering Gaza daily since the truce, far short of what is needed.
UNDP Acting Administrator Haoliang Xu told Reuters that while reconstruction is a top priority, the environment is not yet conducive. “The problem is, where do we even begin?” he asked, citing a UN estimate that more than 61 million tons of rubble must be cleared.
With winter fast approaching, Xu warned that temporary shelters are urgently needed. “We can do this. But hostages must be released, the dead must be recovered, and the right conditions must be in place.”
Initial reconstruction estimates in early 2025, jointly issued by the World Bank, UN, and European Union, put the figure at over $50 billion. That number has now swelled to $70 billion as new assessments account for the scale of destruction, especially in densely populated urban areas.
The Israeli military campaign was launched in response to the October 7, 2023 Hamas attack, which killed 1,200 Israelis and resulted in more than 250 hostages taken into Gaza, according to Israeli figures.
Since then, Gaza’s Health Ministry reports over 67,000 Palestinians killed, with large swaths of the coastal enclave reduced to rubble and ruin.
Still, the tone among IMF and World Bank officials was cautiously optimistic. Many see this as not just a reconstruction project, but a potential pivot point for political stabilization and long-term regional engagement.
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