With the latest collapse of the ceasefire and renewed hostilities between Israel and Hamas, the prospects for a lasting peace in Palestine remain grim. However, one crucial aspect that cannot be ignored is the role of Arab states in shaping any viable resolution to the conflict. It has become clear that an enduring solution for Palestine is not feasible without the involvement of Arab nations. From mediation to reconstruction and governance, the role of regional players such as Egypt, Jordan, Saudi Arabia, and Qatar is key to both immediate stability and long-term peace.
The recent breakdown of the ceasefire agreement, mediated by Egypt, the US, and Qatar, reveals the difficulty of securing a sustainable truce without broad-based regional participation. The ceasefire, which initially facilitated a phased truce and the return of hostages, fell apart due to disagreements between Israel and Hamas over further prisoner exchanges and withdrawal commitments. The unilateral actions taken by Israel—cutting off humanitarian aid to pressure Hamas—further demonstrated that agreements reached in isolation are unlikely to hold. The lack of a neutral and influential enforcement mechanism, which Arab states could provide, led to the swift unravelling of the truce.
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Egypt’s role in mediation, reconstruction
Egypt has historically played a key role in mediating between Israel and Hamas, and it remains a pivotal actor in shaping Gaza’s future. The $53 billion reconstruction initiative proposed by Egypt, with backing from several Arab nations and the UN, offers a realistic path forward in contrast to proposals such as US President Donald Trump’s plan to displace Gazans and redevelop the territory as a tourist hub. Egypt’s steadfast opposition to forced displacement has prevented a humanitarian crisis from worsening, reinforcing its credibility as a crucial stakeholder in any future resolution.
However, Egypt’s own economic vulnerabilities limit its ability to act. Despite its ambitions for regional leadership, Cairo must rely on broader Arab and international support to implement a comprehensive plan for Gaza’s reconstruction and governance.
The Arab League’s response to the crisis has been largely symbolic, with condemnations of Israel and calls for a two-state solution. However, its lack of coordinated action has diminished its effectiveness as a regional force. The convening of the Palestine Summit in March 2025 was a critical moment, as Arab states countered Trump’s relocation proposal with their own plan to rebuild Gaza while ensuring Palestinians remain on their land. The plan, supported by Saudi Arabia, Jordan, and Qatar, envisions a governance model led by Palestinian technocrats and an international peacekeeping force under the UN.
Despite this show of unity, the reluctance of Gulf states to commit significant funds before the conflict’s resolution highlights a key challenge—Arab countries are willing to engage diplomatically, but they remain cautious about financial and military entanglements. Nevertheless, without their economic and political support, efforts to establish lasting peace will remain fragile.
Political challenges to Palestine solution
A major stumbling block to any resolution is the governance of Gaza. The Egyptian plan proposes an interim governance mission led by Palestinian technocrats, with oversight from international peacekeepers. However, Hamas’ refusal to disarm and Israel’s rejection of the plan create significant roadblocks. While Arab states prefer a solution that excludes Hamas from governance, their ability to enforce such a transition is limited without a clear consensus on disarmament and security arrangements.
The Palestinian Authority, which is considered a moderate alternative to Hamas, lacks legitimacy among many Palestinians due to its perceived ineffectiveness and corruption. For Arab states to facilitate a governance transition in Gaza, they must help revitalise the PA by integrating younger, credible leadership and ensuring its capacity to provide basic services and security. This would require concerted efforts from Egypt, Jordan, and Saudi Arabia to train and equip Palestinian security forces, a step that has been tentatively endorsed but not yet fully implemented.
The economic dimension
Beyond governance, economic stability is critical for any lasting solution. The Arab-backed reconstruction plan envisions a phased redevelopment of Gaza, with industrial zones, a commercial seaport, and infrastructure projects aimed at creating employment and stability. However, funding remains uncertain, with Gulf nations hesitant to pledge financial support without clear security guarantees.
China’s growing influence in Egypt and the Middle East presents an additional dynamic. With China endorsing the Egyptian proposal, there is potential for alternative funding sources beyond Western aid. However, balancing these geopolitical interests while ensuring that reconstruction efforts do not empower Hamas remains a key challenge for Arab states.
A sustainable solution to the Palestinian crisis cannot be achieved without meaningful Arab involvement. The failures of past negotiations and unilateral proposals underline the need for a collective, regionally supported approach that balances humanitarian needs, security considerations, and political stability. Egypt’s reconstruction plan offers a starting point, but its success hinges on coordinated Arab efforts in governance, financial commitments, and security enforcement.
For Arab states, this is not just a matter of supporting Palestine—it is about securing regional stability and reclaiming leadership in shaping Middle Eastern geopolitics. While challenges remain, an active and unified Arab role in resolving the crisis is the only realistic path toward a lasting peace.