Across the Middle East, the scale of destruction has created one of the most daunting reconstruction challenges in modern history. Hospitals, schools, homes, power networks and water systems have been reduced to ruins across Gaza, Sudan, Libya, Yemen, Syria and Lebanon, leaving governments and international actors facing the enormous task of rebuilding societies damaged by years of war and internal conflict.
According to El Pais, the combined cost of reconstruction across the region is estimated by the most conservative calculations at more than €1.3 trillion. Yet the question of who will finance, organize and lead that recovery remains unresolved, as countries that were expected to serve as economic lifelines now face the need to repair their own damaged infrastructure.
The uncertainty became more pronounced after a series of developments involving Gaza and the wider regional conflict. On February 19, US President Donald Trump hosted representatives from nearly 50 countries in Washington for the first meeting of the Peace Board, an organization he founded to initially oversee the ceasefire and reconstruction efforts in Gaza. During the meeting, Trump announced that €6 billion had already been secured from members of the board, including several Gulf countries, to begin rebuilding the territory.
A week later, however, the United States and Israel launched a military offensive against Iran, which responded by targeting Gulf monarchies. The conflict immediately altered the economic calculations of those states. Repairs to the energy industries of Gulf countries, the foundation of their economies, could alone cost between €30 billion and €50 billion.
The new financial burden has raised questions over whether Gulf states will still be able to provide the level of funding expected for reconstruction efforts elsewhere in the region. The prospect of rebuilding multiple war-torn countries simultaneously now faces a far more uncertain path.
“The war against Iran has worsened the situation because the Gulf countries will focus on their own economic recovery,” said Swiss-Syrian academic Joseph Daher. However, he added that the difficulties facing reconstruction existed before the latest escalation and cannot be explained by a single conflict.
The destruction in Gaza remains one of the most visible examples of the region’s reconstruction crisis. More than 80% of structures in the territory are estimated to have been damaged or destroyed by Israel, with reconstruction costs projected at around €60 billion. Despite international funding announcements, including the one made by Trump, there is still no agreement over who should lead the rebuilding process.
The uncertainty is reflected in the existence of at least four competing reconstruction plans. They include a US proposal described as the “Riviera of the Middle East” project, another developed by Egypt, a plan promoted by the Palestinian Authority, and an initiative proposed by Israel for areas of Gaza that remain under its control.
For Daher, Israel’s role in the destruction means it should be included in discussions over responsibility for reconstruction. He also emphasized that accountability must involve all actors involved in the region’s political and economic crises.
Abdallah al Dardari, director of the regional office for Arab states at the United Nations Development Programme (UNDP), highlighted another major obstacle: institutional weakness. He argued that even if vast sums of money were available, reconstruction would not succeed without governments and institutions capable of managing the process.
Syria presents another enormous challenge. After a decade of civil war, the fall of Bashar al-Assad’s government at the end of 2024 and the rise of Ahmed al-Sharaa’s administration created new expectations for recovery. The World Bank has estimated Syria’s reconstruction needs at more than €188 billion.
Following the lifting of US sanctions, Syria announced investment agreements worth around €48 billion in sectors including energy, aviation, ports and telecommunications. Companies from Turkey, Qatar and the United Arab Emirates, along with Saudi capital, have shown interest in the country’s recovery. However, many commitments have yet to materialize amid economic difficulties, continued restrictions, political uncertainty and concerns over transparency.
In Lebanon, the election of Joseph Aoun as president and Nawaf Salam as prime minister in 2025 marked a new political phase after years of instability. The country’s reconstruction needs are estimated at nearly €10 billion, mainly concentrated in southern Lebanon and Beirut’s southern suburbs. But renewed Israeli bombardments and destruction in the south have slowed recovery efforts already challenged by a collapsing banking system, regulatory weaknesses and entrenched corruption.
Beyond the eastern Mediterranean, Sudan faces a reconstruction challenge shaped by an ongoing civil war that has lasted more than three years. The conflict has divided the country, pushed state institutions toward collapse and created what has been described as the world’s largest humanitarian crisis. Initial estimates by authorities place reconstruction costs at around €870 billion, though continuing fighting and limited international support have left recovery prospects uncertain.
Libya remains similarly divided, with rival governments and armed groups maintaining a fragile balance of power. The World Bank estimated reconstruction needs at approximately €170 billion a decade ago, but further cycles of conflict and disasters, including the cyclone that struck in 2023, have added to the damage.
In Yemen, years of war and foreign intervention have destroyed or damaged more than a third of the education network, 40% of health facilities, large parts of housing and sanitation infrastructure, and half of energy installations, according to World Bank assessments from 2020. Basic reconstruction was estimated at €17 billion, although the absence of a unified national state continues to complicate recovery efforts.
Despite the scale of destruction, Al Dardari argues that the region does not lack financial resources. He noted that deposits in Arab commercial banks amount to $4 trillion. The central challenge, he said, is whether countries can establish the institutions, regulations and investment conditions needed to attract that capital.
As millions remain displaced and essential infrastructure lies damaged, the reconstruction of the Middle East remains dependent on unresolved political questions, institutional capacity and the ability to convert promised funds into lasting recovery efforts. The rebuilding process has yet to move from announcements to a coordinated regional reality.
