World

Gaza reconstruction to cost over US$71 billion, says UN and EU assessment

Joint report warns of unprecedented humanitarian and economic devastation after prolonged conflict, with urgent need for ceasefire, governance transition and unhindered aid access

Updated 6 months ago · Published on 21 Apr 2026 5:33PM

Gaza reconstruction to cost over US$71 billion, says UN and EU assessment
More than 1.9 million people have been displaced, with widespread infrastructure destruction - April 21, 2026

MORE than RM281 billion (US$71 billion) will be required over the next decade to rebuild and restore the Gaza Strip following widespread devastation caused by prolonged conflict, according to a joint assessment by the United Nations and the European Union.

Reuters reported on Tuesday that the estimate was outlined in the Gaza Rapid Damage and Needs Assessment, which concluded that more than two years of intense bombardment have triggered a severe humanitarian crisis and left the Palestinian territory in urgent need of large-scale recovery efforts.

“Reconstruction must proceed alongside humanitarian action while ensuring a transition from emergency aid to large-scale development.

“The process must also be Palestinian-led and incorporate approaches that actively support the transfer of governance to the Palestinian Authority in line with United Nations Security Council Resolution 2803,” the joint statement said.

The resolution, adopted in November, also welcomed the establishment of a “Peace Board” proposed by United States President Donald Trump to support Gaza’s reconstruction.

The United Nations and European Union stressed that a set of enabling conditions would be essential to ensure effective implementation on the ground, including a sustained ceasefire, security guarantees, unhindered humanitarian access, rapid restoration of basic services, freedom of movement, and unrestricted delivery of construction materials.

The assessment found that US$26.3 billion would be needed within the first 18 months alone to restore essential services, rebuild critical infrastructure and support economic recovery.

It further estimated physical infrastructure damage at US$35.2 billion, with economic and social losses totalling US$22.7 billion.

The report highlighted the scale of destruction across Gaza, noting that approximately 371,888 housing units have been partially or completely destroyed. More than half of hospitals are no longer operational, while nearly all schools have sustained damage or been rendered unusable.

The humanitarian toll has been equally severe, with around 1.9 million people displaced multiple times, many forced to move more than five times, and over 60 per cent of the population left without permanent shelter.

The prolonged conflict has also caused Gaza’s economy to contract by an estimated 84 per cent, underscoring the magnitude of the recovery challenge facing the territory in the years ahead. - April 21, 2026

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