The European Union and the United Nations, in collaboration with the World Bank, have released a final assessment estimating that recovery and reconstruction in Gaza will require $71.4 billion over the next decade.
- Total Estimated Need: $71.4 billion over 10 years, with $26.3 billion required in the first 18 months.
- Economic Impact: The Gaza economy has contracted by 84%, and human development has been set back by an estimated 77 years.
- Infrastructure Loss: Over 371,888 housing units destroyed or damaged, and more than 50% of hospitals are non-functional.
Financial and Economic Impact of Gaza Recovery and Reconstruction
The final Gaza Rapid Damage and Needs Assessment (RDNA) calculates physical infrastructure damages at $35.2 billion, while economic and social losses total $22.7 billion.
Of the total reconstruction cost, $26.3 billion is needed within the first 18 months to restore essential services, rebuild critical infrastructure, and support early economic recovery.
The report highlights a catastrophic collapse in human development and a significant contraction of the local economy, which has shrunk by 84% following 24 months of conflict.
Widespread Sectoral Damage
Housing, health, education, commerce, and agriculture were identified as the hardest-hit sectors. Nearly all schools have been destroyed or damaged, and more than half of the region’s hospitals are currently non-functional.
Displacement has affected approximately 1.9 million people, many of whom have been displaced multiple times. More than 60% of the population has lost their homes, with over 371,888 housing units damaged or destroyed.
The assessment notes that the greatest burdens have fallen on children, women, persons with disabilities, and those with pre-existing vulnerabilities.
Framework for Implementation
The EU and UN emphasize that reconstruction must be Palestinian-led and align with UN Security Council resolution 2803. The approach focuses on “building-back-better” to support the transition of governance to the Palestinian Authority.
Officials stated that physical rebuilding is inherently interconnected with a clear pathway to Palestinian statehood and a durable political settlement based on a two-state solution.
Necessary Conditions for Success
The report outlines several minimum conditions required for recovery to succeed, including a sustained ceasefire, adequate security, and unimpeded humanitarian access.
Critical requirements include the free movement of people, goods, and construction materials between Gaza and the West Bank, alongside a functional and transparent financial system.
Immediate prerequisites for reconstruction include the management of explosive ordnance, debris clearance, and the protection of land and property rights.
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