Israeli opposition leader Yair Lapid presented a plan in Washington regarding Gaza, which includes a proposal for Egypt to take over the administration of the Gaza Strip for eight years in exchange for relief from its external debts. Here is the verbatim text of what Lapid said during a discussion session at the Foundation for Defense of Democracies (FDD), a prominent pro-Israel think tank in Washington:
“At the same time, on our southern border, another serious problem is emerging: Egypt is in a predicament. The Egyptian economy is struggling to overcome an escalating crisis. Egypt’s population is growing at nearly 2% annually. President Sisi needs to feed 120 million people. The COVID-19 pandemic and the Gaza war have devastated tourism, while terrorism affects revenues. Egypt’s external debt exceeds $155 billion, and its borrowing capacity is diminishing. If President Sisi cannot subsidize bread prices for Egypt’s poor or fund the Egyptian military, his leadership will be at risk. This is very bad news for all of us. Egypt has been a key strategic partner and a reliable ally for nearly 50 years. It is a moderate Sunni state playing a pivotal role in the region. President Sisi has long been a stabilizing force in the Middle East and Africa, fighting religious extremism for years. Egypt’s strength, stability, and prosperity serve everyone’s interests. The alternative could be catastrophic: Egypt could fall back into the hands of the Muslim Brotherhood, or even worse, triggering a domino effect that plunges the entire Middle East into uncertainty. This has happened before and could happen again.”
Lapid continued:
*”I want to propose a solution that addresses both of these problems simultaneously. Let me summarize them:
The first problem: After October 7 and the war, the world needs a new solution for Gaza. Israel cannot accept Hamas remaining in power. The Palestinian Authority is either unable or unwilling to govern Gaza in the near future. An Israeli occupation is undesirable and unfeasible. Ongoing chaos poses both a security threat and a humanitarian disaster.
The second problem: Egypt’s economy is on the brink of collapse, threatening the stability of Egypt, the Middle East, and Africa. The $155 billion in external debt prevents Egypt from rebuilding its economy and strengthening its military against internal and external threats.”*
Lapid proposed that Egypt assume responsibility for governing Gaza for eight years, with the possibility of extending to 15 years, while its external debt would be paid off by the international community and regional allies. Egypt would lead a peacekeeping force, in partnership with Gulf countries and the international community, to manage and rebuild Gaza. During this period, conditions would be set for self-rule in Gaza, and the full disarmament of the enclave would be completed.
He argued that this proposal has historical precedent: Egypt governed Gaza for eight years from 1948 to 1956 and again for a decade from 1957 to 1967, with support from the Arab League, under a temporary mandate, without occupying the territory. Lapid asserted that a similar arrangement should happen today, adding that this proposal aligns with former U.S. President Donald Trump’s idea that the international community would help rebuild Gaza, as it provides the necessary framework for reconstruction.
Lapid outlined several benefits of the plan:
Security: Israel seeks to transfer control of Gaza to an entity other than Hamas that can maintain security. Gaza cannot be rebuilt without an overseeing authority that can also cooperate with Israel on security matters. Israel and Egypt share a long-standing strategic relationship backed by the U.S. Egypt has a vested interest in stabilizing Gaza and preventing population displacement into its territory.
Economy: The plan offers an economic incentive for Egypt by strengthening its government and helping to feed its people.
Proposed Plan Structure
Completion of the current ceasefire: Including all its phases and the release of hostages, with Israel maintaining its strategic positions.
Egypt takes control of Gaza: Through a U.N. Security Council resolution, managing security and civil affairs under a custodianship framework aimed at transferring Gaza to the Palestinian Authority within 8 to 15 years, following reforms and de-radicalization.
Initiating reconstruction: Under Egypt’s supervision, with participation from Saudi Arabia, Abraham Accords countries, and U.S. investment support.
Ensuring freedom of movement: For Gaza residents wishing to leave, through an organized process.
Preventing arms smuggling into Gaza: By dismantling tunnels and other terrorist infrastructure, with a joint security mechanism between Egypt, Israel, and the U.S. to address immediate threats.
The plan does not exclude the return of the Palestinian Authority to Gaza, nor does it rule out Egypt, along with Saudi Arabia and Abraham Accords countries, gradually integrating the PA into Gaza’s administration. However, this must be coordinated with Israel and the U.S., with a primary focus on Israel’s security. Complete disarmament of Gaza is a prerequisite for reconstruction. Lapid emphasized that a scenario where a terrorist organization controls the territory while others manage its civil affairs—similar to Hezbollah in Lebanon—cannot be tolerated.
Will Egypt Accept Governing Gaza Again?
This proposal has reignited the debate over whether Egypt would agree to govern Gaza again, as it did after the 1967 war.
A senior Egyptian source, familiar with the Gaza ceasefire negotiations, told Cairo News Channel that Egypt is engaged in intensive talks to form a temporary committee to oversee relief efforts and Gaza’s reconstruction. The source added that Hamas has affirmed its commitment to the ceasefire agreement and will not participate in governing Gaza in the next phase.
Arab League Secretary-General Ahmed Aboul Gheit recently stated in a televised interview that Hamas must reconcile with the Palestinian Authority and prioritize national unity. He indicated that if the international consensus and Palestinian interests require Hamas to step back from governance, then this should happen with Arab backing and Palestinian agreement.
UAE Presidential Advisor Anwar Gargash also supported the call for Hamas to relinquish control of Gaza, writing on X: “The Arab League Secretary-General’s rational call for Hamas to step down from governing Gaza is on point. The Palestinian people’s interests must take precedence over the movement’s interests, especially given the threats of forced displacement.”
Egypt has previously mediated talks between Hamas and Fatah, leading to a preliminary agreement on an independent committee to manage Gaza, named the “Community Support Committee.” However, the Palestinian Authority rejected this initiative and proposed an alternative.
Egyptian Foreign Minister Badr Abdel Aty recently stressed that any post-war arrangements for Gaza must maintain the unity of the West Bank and Gaza and ensure the return of the Palestinian Authority to the enclave.
