Will Egypt Accept Administering Gaza in Exchange for Paying Off Its Foreign Debt?

Israeli opposition leader Yair Lapid has sparked controversy in Egypt and Palestine after unveiling a proposal that complements former U.S. President Donald Trump’s plan for Gaza. The proposal, revealed on Tuesday, offers Egypt financial incentives worth billions of dollars in exchange for managing the besieged Palestinian territory.

Lapid’s plan closely resembles the original Zionist vision introduced by Theodor Herzl, the Austrian journalist and founder of Zionism, who proposed in 1876 that the Ottoman Empire’s debt be settled in return for granting Jews land in Palestine. That proposal was firmly rejected by Sultan Abdul Hamid II (1842–1918), despite immense pressure from the empire’s creditors.

Lapid has reportedly pitched his idea to senior Trump administration officials at the White House and high-ranking U.S. Senators. The proposal suggests that Egypt takes over the administration of Gaza for a period of 8 to 15 years.

In exchange, the international community and regional allies would settle Egypt’s $155 billion foreign debt. During this period, Gaza would undergo reconstruction under Egyptian oversight, according to details shared on Lapid’s official X (formerly Twitter) page.

The proposal also envisions Egypt leading a “peacekeeping force,” with international and Gulf nations participating to oversee the governance and reconstruction of Gaza, which has suffered mass destruction due to Israel’s genocidal war against its 2.3 million Palestinian residents since October 7, 2023.

A Plan to Disarm Gaza

Lapid’s ultimate goal is clear: “To completely demilitarize Gaza.” He stated that “After nearly a year and a half of fighting, the world was shocked that Hamas still controls Gaza.” He also accused Israeli Prime Minister Benjamin Netanyahu of failing to establish an alternative government in Gaza capable of removing Hamas.

Furthermore, Lapid argued that Egypt’s economy is on the brink of collapse, threatening the stability of both Egypt and the wider Middle East. He claimed that Egypt’s massive $155 billion debt burden prevents it from rebuilding its economy or strengthening its military.

Lapid attempted to justify his proposal by citing historical precedent, pointing out that Egypt governed Gaza between 1948 and 1967.

A Mirror of Netanyahu’s Agenda

Lapid’s plan aligns with Netanyahu’s long-standing statements. On February 19, 2024, Netanyahu declared that “any future agreement must ensure the dismantling of Hamas’ military infrastructure.”

In response, the Islamic Resistance Movement (Hamas) firmly rejected the idea of disarming the Palestinian resistance or removing it from Gaza. Hamas stressed that any future arrangements for Gaza must be determined through Palestinian national consensus and dismissed Israeli demands as “ridiculous psychological warfare.”

Meanwhile, Israeli officials continue inciting calls for the mass expulsion of Palestinians from Gaza, the West Bank, and occupied Jerusalem to Egypt, Jordan, and other countries. The rhetoric has escalated to open advocacy for ethnic cleansing and genocide.

On Sunday, Israeli Deputy Knesset Speaker Nissim Vaturi made blatantly racist and inciteful remarks, calling for the murder of Palestinian adults. He said, “We must separate the children and women and eliminate the adults.”

Since January 25, 2024, Trump has been actively promoting a scheme to forcibly displace Gaza’s population to Egypt and Jordan. Both countries have officially rejected the plan.

During a February 16 meeting at the White House, Jordan’s King Abdullah II informed Trump of an alternative Egyptian plan that Cairo is currently discussing with Arab states.

Egypt’s Position and Regional Diplomacy

Egyptian President Abdel Fattah el-Sisi was expected to visit Washington on February 18, but he canceled the trip, opting instead to first consult with Arab leaders in Riyadh on February 20. The meeting included leaders from Jordan, Qatar, the UAE, Bahrain, and Kuwait—yet no Palestinian resistance factions were invited.

As of now, the outcomes of these discussions remain undisclosed. Many anticipate further details at an emergency Arab League summit scheduled for March 4, 2024, in Cairo—delayed from its original date of February 27.

Economic Pressures on Egypt

Egypt, the second-largest economy in the Arab world and Africa, is facing a historic debt crisis. The country suffers from chronic structural problems that have led the government to sell off national assets, public companies, and strategic lands. Meanwhile, the Egyptian population—**the largest in the Arab world (107 million people)—**endures worsening poverty and economic hardship.

Despite Israel’s generous offer to Egypt, Tel Aviv continues to pressure Cairo diplomatically and militarily.

Israeli officials and diplomats are actively opposing Egypt’s military expansion in Sinai, arguing against arming the Egyptian military. Additionally, Israel is attempting to increase gas export prices to Egypt by 40%—a clear act of political blackmail regarding Gaza, according to analysts.

Political and Strategic Implications

Arab and Egyptian political analysts have warned that Lapid’s proposal is a dangerous move against the Palestinian cause, particularly targeting Gaza, the resistance, and Hamas at its core. Experts also highlight the risks for Egypt and speculate whether Trump might embrace Lapid’s idea.

“An Insult to Egypt”

Dr. Murad Ali, an expert in strategic management and crisis administration, criticized Lapid’s proposal as “an insulting attempt to exploit Egypt to eliminate Hamas and the Palestinian resistance without Israel having to reoccupy Gaza.”

Speaking to local media, Ali explained that Cairo’s administration of Gaza in exchange for debt relief would come with conditions: preventing weapons smuggling, dismantling tunnels, and eradicating the resistance’s infrastructure.

Ali stated, “Lapid’s proposal assumes that Egypt’s government, led by Sisi, has a history of selling everything and will accept playing the role of executing the resistance’s liquidation on Israel’s behalf—for $155 billion.”

He warned that this could be part of a wider deal between Arab governments, pointing out that “there is no official Arab plan yet—only leaks from Reuters suggesting reconstruction efforts without Hamas.”

Ali also expressed skepticism about Arab leadership, criticizing Saudi Crown Prince Mohammed bin Salman’s decision to host a summit on Palestine without inviting any Palestinian representatives.

“A Dangerous Gamble”

Syrian researcher Ammar Farhoud cautioned that Lapid’s plan “ties Egypt’s economic stability to Gaza’s fate, as imagined by Netanyahu and Lapid.”

He warned, “The goal might be to drag Egypt into making decisions it does not want, while also fueling divisions among Arabs and Muslims.”

Conclusion: A Recycled Colonial Scheme

Political analysts agree that Lapid’s proposal is simply a repackaging of Trump’s earlier plan for Gaza. Egyptian political expert Mamdouh Al-Munir described it as “another colonial scheme aimed at stripping the Palestinian cause of its political weight and turning Gaza into an isolated administrative entity.”

Ultimately, the only real solution for Gaza is not a change in occupation—but a complete end to the occupation itself. True resolution lies in restoring the Palestinian cause to its rightful path, awakening the Arab world, and upholding moral, religious, and historical obligations to Palestine.