Well according to Trump, phase 2 of the peace plan is about to commence within a "few days". The main problem with the reconstruction of Gaza remains that no one will pay for it until Hamas agree to disarm which they still refuse to do. The Egyptian plan puts the cost of reconstruction at $53bn; the UN estimates it at $70bn.
So how do we think reconstruction can commence with Hamas still armed & dangerous on their side of the line? There are only two options that I can see: end the ceasefire and carry on fighting Hamas or begin reconstruction on the Israeli side of the yellow line. I know many people will find both options unpalatable but no country has expressed any desire to fund the reconstruction until Hamas disarm. And no country seems willing to send their own troops to disarm Hamas either.
According to The Economist, "money is the biggest obstacle" to the reconstruction of Gaza and "no one in the Arab world is eager to join". Hence the talk of an alternative.
Instead of rebuilding Gaza’s existing cities, which are near the coast, some Americans and Israelis hope to start reconstruction on Israeli-controlled territory. They would probably begin near Rafah, in southern Gaza, where Israel holds the largest chunk of land. The idea is to build a string of modular towns: each would house thousands of Palestinians and include clinics, schools and other services.
As the Economist points out however: The scheme has echoes of failed initiatives tried in other counter-insurgencies, from Afghanistan in the 2000s to Vietnam in the 1960s. It seems unlikely to work in Gaza either. Only a few thousand Palestinians live on the Israeli side of the line (many are members of Israeli-backed militias). Even if others could be convinced to move, Israel would have to vet them; it is unclear if they would then be allowed to return, or to move freely on the Israeli side.
If Hamas really cared about the people of Gaza, now would be the time to disarm so the whole of Gaza could be rebuilt. Maybe that's where some of the protests and political pressure could be aimed? Just a thought.
www.economist.com/middle-east-and-africa/2025/11/12/gazas-zombie-ceasefire