During Binyamin Netanyahu’s visit to Washington, President Trump unveiled a controversial plan for Gaza, one that even the Israeli prime minister refrained from suggesting. Trump’s proposal, which includes the mass transfer of Palestinians out of Gaza followed by U.S. control to rebuild it into a “riviera of the Middle East,” has drawn widespread international condemnation. Despite this, Trump has stood by his plan, calling it a “beautiful real estate plan” and a “development for the future.”
The plan appears to have been inspired by a 49-page report from Joseph Pelzman, an economics professor at George Washington University, who sent a similar blueprint to Trump’s advisers months earlier. Pelzman’s report, entitled An Economic Plan for Rebuilding Gaza, suggests the complete demolition of Gaza, creating buffer zones along its borders with Israel and Egypt, and then rebuilding it with high-rise housing and beachfront properties facing the Mediterranean. It also proposes agricultural areas and greenhouses in between.
Pelzman, who previously worked with USAID on economic projects, views the conflict as an opportunity for a new approach. He describes the plan as requiring Gaza to be “completely emptied out,” recommending a radical shift involving the construction of a new, modernized city with private-sector investments under a Build-Operate-Transfer (BOT) model. The idea envisions a self-sustaining economy based on tourism, agriculture, and technology, powered by solar energy and featuring a light rail system.
Trump’s remarks about Gaza being “prime real estate” and the idea of turning it into a U.S.-owned property have faced criticism, particularly from Palestinians who associate the plan with echoes of the Nakba—the forced displacement during the founding of Israel. Pelzman suggests relocating Palestinians, potentially to Egypt, though Egypt has firmly rejected this proposal.
The cost of this ambitious plan is estimated to range from $1 trillion to $2 trillion, and Pelzman believes it could take five to ten years to complete. However, experts have raised concerns that the removal of Palestinians without a guarantee of their right to return would violate international law and be unworkable.
In his plan, Pelzman stresses the need for civil governance and legal infrastructure to stabilize Gaza. He suggests employing civil administrators to establish rule of law under a market system, and addressing sovereignty after a 50-year lease arrangement.
While the plan has ignited a storm of controversy, it appears that Trump and his team have been drawing heavily from this detailed proposal. However, many analysts remain skeptical about its feasibility and legal implications.
