UN Warns Gaza Reconstruction Could Exceed $70 Billion After War’s Devastation

A new report by the United Nations Conference on Trade and Development (UNCTAD) has concluded that rebuilding the Gaza Strip will require a minimum of $70 billion, with some projections indicating the cost and time span may stretch well beyond several decades.

The report describes the enclave as a “human-made abyss”, asserting that years of conflict have “significantly undermined every pillar of survival” for Gaza’s 2.3 million inhabitants.

According to the analysis, Gaza’s economy contracted by approximately 87 per cent during the 2023-24 military operations, leaving gross domestic product per capita at an estimated $161, placing the territory among the lowest-income regions globally.

The devastation is compounded by damage to homes, infrastructure, water and sanitation systems, power grids and transportation networks, rendering the rebuilding task enormous both in scale and complexity.

UNCTAD emphasises that this figure is only a starting point for reconstruction: it covers debris clearance, shelter and infrastructure rehabilitation, utility restoration and social-service provision.

Longer-term issues such as economic revitalisation, job creation, governance reform and environmental remediation are not fully captured in that estimate and could push final cost estimates even higher.

The report also warns that the sheer physical volume of damage and the lingering hazards of unexploded ordnance and contaminated rubble amplify both risk and cost.

In light of these findings, the report calls for a global financing strategy that is far larger than previous reconstruction efforts post-conflict.

Donor commitment will need to be sustained for years to come, while multilateral institutions, Palestinian and Israeli authorities, and regional actors align on governance, transparency and phased recovery planning. Without such coordinated effort, the report warns, Gaza’s reconstruction could falter—leaving the population in prolonged displacement, poverty and infrastructural limbo.

Source: The Guardian