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The Gaza redevelopment: Is Trump planning to offer money to Palestinians to leave Gaza?

FP Explainers September 1, 2025, 20:10:38 IST

US President Donald Trump’s administration is considering a decade-long US trusteeship over Gaza that would see residents offered $5,000 to leave, property rights replaced with digital tokens, and the territory rebuilt into AI-driven smart cities and luxury resorts

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A view of tents sheltering Palestinians displaced by the Israeli military offensive, in Gaza City, August 23, 2025. File Image/Reuters
A view of tents sheltering Palestinians displaced by the Israeli military offensive, in Gaza City, August 23, 2025. File Image/Reuters

United States President Donald Trump’s administration is examining a far-reaching plan for the future of Gaza that would place the US in direct control of the enclave for a decade, relocate its population, and turn the territory into a hub for tourism, advanced industries and urban mega-projects.

The details, contained in a 38-page draft proposal obtained by The Washington Post, outline a project known as the Gaza Reconstitution, Economic Acceleration and Transformation Trust (GREAT Trust).

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According to the prospectus, Gaza’s roughly two million residents would either temporarily leave the territory or move into restricted areas while reconstruction was underway.

Those who gave up their property rights would be compensated with digital land tokens and financial assistance.

The plan envisions skyscrapers, artificial intelligence-driven smart cities, luxury resorts, golf courses, and high-tech facilities rising from what has long been one of the most densely populated and war-damaged territories in the world.

The stated aim is to create a modern economy, backed by a trusteeship under US oversight, before eventually transferring control to a Palestinian administration considered reformed and non-hostile.

$5,000 cash, digital tokens for land

One of the most striking elements of the proposal is its system of financial incentives for Palestinians who agree to depart Gaza or resettle within controlled zones during reconstruction.

Each individual who accepts the arrangement would receive $5,000 in cash, along with rent subsidies covering four years and food supplies for twelve months.

In exchange, property owners would relinquish their land in return for a digital token. These tokens would serve as tradable instruments representing ownership rights.

They could later be redeemed for apartments or housing units in the newly developed cities, or potentially liquidated to support relocation abroad.

The draft suggests this system would create a mechanism to fund redevelopment projects while providing displaced residents with temporary financial stability.

Supporters argue it would allow Gaza’s transformation without reliance on US taxpayer money, since investments would come from a combination of private and public funds targeting mega-projects.

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The prospectus aligns with comments Trump made earlier in the year. In February, he said the United States should “take over” Gaza, resettle its population, and rebuild the area into “the Riviera of the Middle East.”

Those remarks were met with outrage from Palestinian leaders and international humanitarian groups, who warned of potential forced displacement and long-term disenfranchisement.

For many Palestinians, the prospect of “voluntary” departure under financial duress raises fears of a coerced exodus. Human rights organisations have cautioned that any scheme involving mass relocation, regardless of how it is framed, could amount to a violation of international law.

What we know about the Gaza Humanitarian Foundation

The Gaza Humanitarian Foundation (GHF), a controversial US-backed group, is closely tied to the plan. Established with Israeli involvement, GHF currently handles the delivery of food aid into Gaza.

It operates with logistical support from private American security companies and coordination with the Israeli military.

The organisation has been promoted by the Trump administration and Israel as an alternative to UN-run humanitarian channels, which Israeli officials claim have allowed militant groups to divert supplies.

Yet the GHF’s record has raised serious concerns.

The United Nations reported in early August that more than 1,000 Palestinians had been killed near GHF aid distribution points since May this year, the majority shot by Israeli forces guarding the sites.

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This grim toll has fuelled criticism that the foundation’s model not only bypasses established humanitarian systems but also exposes civilians to heightened risks.

Still, the Trump administration appears to view GHF as the preferred vehicle for administering assistance during any reconstruction program.

How Gaza can be turned into an AI-powered enclave

The GREAT Trust document is not limited to temporary arrangements; it presents a grand architectural vision for Gaza’s future.

Modelled in part on the 19th-century urban redesign of Paris by Georges-Eugène Haussmann, the plan calls for dividing Gaza into six to eight distinct “AI-powered smart cities.”

These would include high-rise apartment towers of up to 20 stories, surrounded by parks, commercial districts, and coastal resorts.

The blueprints feature highways, mass transit, and industrial complexes.

Notably, two major highways are proposed to carry the names of prominent Gulf leaders: the “MBS Highway,” in reference to Saudi Crown Prince Mohammed bin Salman, and another named after UAE President Mohammed bin Zayed al-Nahyan.

Additional projects include electric vehicle plants, data centres, and high-capacity infrastructure designed to connect Gaza with regional markets.

The financing model will consist of investment by private companies, sovereign wealth funds, and joint ventures with US and Israeli partners.

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According to the draft, no direct American government expenditure would be required, though Washington would oversee governance and security during the trusteeship.

How regional players are involved

The Trump administration has engaged with international figures on Gaza’s reconstruction. Last week, Trump hosted former British Prime Minister Tony Blair at the White House to discuss proposals.

Blair has been advising Trump’s Middle East envoy Steve Witkoff, and his institute has conducted polling suggesting that Gazans prefer a future akin to the prosperity of the United Arab Emirates.

No official summary of the meeting was released, but Witkoff commented beforehand that the administration had developed “a very comprehensive plan.”

Whether the GREAT Trust reflects the precise vision discussed remains unclear, but much of the proposal mirrors Trump’s oft-repeated desire to turn Gaza into a showcase of modern development.

The GREAT Trust’s relocation element, however, contrasts sharply with initiatives advanced by Arab states.

Saudi Arabia and the UAE have jointly pledged $53 billion toward an “Egypt plan” that envisages rebuilding Gaza in just five years with towers, ports, parks, and business hubs — without requiring population removal.

How security arrangements will work for Gaza

Security arrangements are another cornerstone of the draft. During the first year of trusteeship, Israel would retain broad authority to act on its security needs.

Internal policing would be carried out by international personnel, including contractors from private Western military firms.

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Over time, responsibilities would shift to locally trained police forces, with the expectation that after ten years, control could be handed to a reconstituted Palestinian administration.

This body, according to the plan, must demonstrate both reform and “de-radicalisation” before assuming authority.

What the Boston Consulting Group controversy is

The authorship of the GREAT Trust has generated its own controversy. The Washington Post reported that two former partners of the Boston Consulting Group (BCG) — Michael Eisenberg, an Israeli-American, and Liran Tancman, a former Israeli military intelligence officer — were involved in drafting the proposal.

BCG has since stated that the work was unauthorised. “We are shocked and outraged by the actions of these two partners,” the firm said.

“BCG disavows the work they undertook. It has been stopped, and BCG has not and will not be paid for any of their work.”

A source familiar with the project told the newspaper, “It’s not prescriptive, but is exploring what is possible. The people of Gaza need to be enabled to build something new, like the president said, and have a better life.”

How the conflict in Gaza is faring

Even as reconstruction blueprints circulate, Gaza continues to suffer heavy bombardment. Israeli forces have increased ground and air operations around Gaza City over the past three weeks.

On Friday, they ended temporary humanitarian pauses in the area and declared it a “dangerous combat zone.”

The shift has disrupted aid distribution and worsened conditions for civilians. Cindy McCain, executive director of the World Food Programme, told CBS News, “It’s going to limit the amount of food that they have access to.”

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An assessment by the Integrated Food Security Phase Classification (IPC) warned earlier in August that around 514,000 people — about one quarter of Gaza’s population — are facing famine conditions, primarily in Gaza City and nearby districts.

Israeli authorities dismissed the findings as biased, alleging the data relied heavily on Hamas sources and overlooked recent food deliveries.

On the military front, Israel announced that Abu Obeida, the spokesman for Hamas, was killed in an airstrike.

Israeli Defense Forces chief of staff Eyal Zamir stated, “Most of Hamas’s leadership is abroad, and we will reach them as well.” His death was reported as one of 88 fatalities in Israeli strikes within a 24-hour span.

The sun sets behind buildings destroyed during Israeli ground and air operations in the Gaza Strip, as seen from southern Israel, August 26, 2025. File Image/AP

Meanwhile, Israel’s security cabinet convened in Tel Aviv to consider broader territorial policies.

According to Axios, the cabinet debated potential annexation of parts of the West Bank — a move seen as a direct response to pledges from Western countries, including the UK, to recognise Palestinian statehood.

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With inputs from agencies

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