The possibility of utilizing Gaza’s offshore gas reserves to fund the reconstruction of the devastated enclave is gaining traction in discussions between the United States, Israel, and the United Arab Emirates. According to sources speaking to Middle East Eye, preliminary talks are underway to explore how the potential revenue from Gaza’s undeveloped gas fields could be channeled towards rebuilding efforts, a critical need given the extensive destruction caused by the recent conflict. This comes amidst a broader, and still nascent, post-war planning process spearheaded by the US, even before a formal ceasefire is in place.
Exploring Gaza’s Gas for Reconstruction: A New Approach?
The idea of monetizing Gaza’s natural gas isn’t new, but it has resurfaced in recent months. The discussions center around several potential models, including the Abu Dhabi National Oil Company (Adnoc) acquiring a stake in Gaza’s gas fields. The resulting funds would then be earmarked for reconstruction projects. While no firm commitments have been made, the renewed focus reflects a search for innovative funding mechanisms to address the immense rebuilding costs.
Gas was initially discovered in Gaza’s marine field back in 2000, representing a potentially significant economic asset for the Palestinians. However, development has been stalled for years due to political complexities and security concerns.
Ownership and Potential Revenue
The rights to develop the gas field are currently shared between the Palestine Investment Forum, the Palestinian Authority’s sovereign wealth fund, and the Consolidated Contractors Company, a construction and energy conglomerate with Palestinian roots. Approximately 45% of the rights are reserved for an international partner. Before the October 7th attack, Egypt had expressed interest in acquiring a stake.
Experts estimate the project is commercially viable. Michael Barron, author of The Gaza Marine Story, estimates that developing the gas field would cost around $750 million but could generate approximately $4 billion in revenue, with annual profits of $100 million for 15 years going to the Palestinian Authority. This makes Gaza’s natural resources its most valuable asset currently, and its development could significantly contribute to rebuilding the territory.
The Scale of Reconstruction and Current Challenges
The United Nations estimates the total cost of Gaza’s reconstruction to be a staggering $70 billion. However, the US and Israel are not currently focused on a comprehensive rebuilding plan. Instead, a smaller-scale initiative, driven by individuals close to former President Trump’s son-in-law, Jared Kushner, is underway to construct temporary housing units within the Israeli-occupied portion of Gaza.
This limited scope has drawn criticism from Egypt and Gulf states, including the UAE, who oppose a plan that would effectively partition Gaza. Furthermore, the prospect of deploying an international force to Gaza has stalled, as Arab and Muslim nations are hesitant to become entangled between Hamas and Israeli forces. Despite these challenges, discussions regarding the monetization of Gaza’s gas field continue.
The UAE’s Emerging Role and Regional Dynamics
The US is exploring a broader integration of Gaza’s gas into the Eastern Mediterranean’s regional gas network. While the Emirati and Israeli embassies in Washington, as well as the State Department, did not respond to requests for comment, the UAE appears poised to play a central role in any potential development.
Israel has become a significant natural gas producer in the region, recently approving the export of $35 billion worth of gas to Egypt. The UAE, having previously considered a $2 billion stake in Israel’s NewMed Energy (which holds significant stakes in Israeli and Cypriot gas fields), has demonstrated a clear interest in Eastern Mediterranean gas.
Qatar, previously a key aid provider to Gaza and host to Hamas leadership, has stated it will not fund reconstruction efforts, citing Israel’s responsibility for the destruction. Saudi Arabia has also remained non-committal. This leaves the UAE as the primary Gulf partner willing to collaborate with the US and Israel on Gaza. Abu Dhabi is already the largest humanitarian donor to the enclave.
A Business-Focused Approach to Conflict Resolution?
The Trump administration previously adopted a business-oriented approach to diplomacy in Ukraine, framing engagement as a transaction. This pattern continues with efforts to link peace deals to access to critical minerals. The current situation suggests a similar strategy may be applied to Gaza, with investment in natural resources serving as a potential pathway to reconstruction.
Furthermore, US and Israeli officials are reportedly consulting with a former Bulgarian diplomat and UN envoy, currently teaching at the UAE’s diplomatic academy, about a potential role as a liaison within Trump’s “Board of Peace” in Gaza. This highlights the growing influence of the UAE in shaping the post-conflict landscape.
In conclusion, while still in the preliminary stages, the discussions surrounding the use of Gaza’s gas reserves to fund reconstruction represent a potentially significant development. The UAE’s willingness to engage, coupled with the clear economic viability of the project, offers a glimmer of hope amidst the immense challenges facing Gaza. Further developments and concrete commitments will be crucial in determining whether this initiative can translate into tangible benefits for the Palestinian people and contribute to a sustainable future for the region.