Rebuilding Gaza Faces $70 Billion Challenge As UN Warns

Gaza Needs $70 Billion

Overview

UN agencies report that Gaza has suffered extensive destruction and that reconstruction will require more than US$70 billion, and the recovery may take decades to complete given the scope of damage and displacement. UN experts indicate that immediate humanitarian support is critical, and long-term planning will demand coordination among governments, international agencies, and local authorities.

Extent Of Destruction And Economic Fall

UNCTAD researchers describe Gaza as descending into a human-made abyss, and they note that both infrastructure and the local economy have been severely impacted. Gaza’s GDP contracted by roughly 87 percent during 2023 and 2024, and GDP per capita dropped to around US$161, so the territory now ranks among the lowest-income regions worldwide. Trade restrictions and mobility limitations compounded economic decline, and destruction of businesses and industrial facilities eliminated most employment opportunities. Fiscal shortfalls and reduced access to public services further weakened local capacity, and international observers stress that economic deterioration affects the broader Palestinian territories as well.

Infrastructure, Housing, And Services

UNDP assessments indicate that approximately 84 percent of Gaza’s built environment was damaged or destroyed, and urban centers such as Gaza City experienced damage levels exceeding 90 percent. Housing emerged as one of the hardest-hit sectors, and over 292,000 housing units were destroyed or rendered uninhabitable, so many families faced displacement and loss of shelter.

Hospitals, schools, water networks, sanitation systems, power grids, and transport infrastructure sustained extensive damage, and public services nearly collapsed, which created urgent health, education, and mobility challenges. Industrial facilities and commercial hubs were heavily affected, and unemployment soared, so local economic activity largely ceased and livelihoods disappeared.

Scale Of Damage

UN and partner organizations estimate that rebuilding Gaza will require around US$70 billion to restore housing, infrastructure, utilities, social services, and economic functions, and the figure reflects both physical destruction and lost development. Immediate recovery needs require roughly US$20 billion for debris removal, temporary shelters, water and sanitation systems, and essential utilities, so early intervention is crucial to prevent worsening humanitarian conditions. Reconstruction of housing represents a significant portion of total costs, and rebuilding education, healthcare, transportation, and utilities will demand cross-sector investment and sustained coordination. Clearing rubble and hazardous materials will take years, and full restoration depends on continuous international funding and a stable security environment.

Humanitarian Impact On Population

UN reports indicate that Gaza’s population faces severe humanitarian stress because destruction of homes, infrastructure, and services, combined with economic collapse, has created widespread vulnerability. Children, elderly individuals, displaced families, and the sick are particularly at risk, and lack of access to clean water, sanitation, healthcare, education, and food security exacerbates hardship. Closure of schools and universities threatens human capital development, and a generation may face diminished educational and employment opportunities. Community cohesion has weakened due to displacement and loss of social networks, and rebuilding economic, social, and institutional systems will require coordinated long-term efforts.

Calls For International Assistance

UN and humanitarian agencies urge the development of a comprehensive reconstruction plan that combines financial support, restoration of fiscal transfers, facilitation of trade, and rebuilding of infrastructure, housing, services, and governance institutions. Donor nations, international organizations, and private-sector actors are encouraged to form a coordinated funding coalition, and pledges remain insufficient to meet the scale of needs. Reconstruction plans must address debris removal, clearance of unexploded ordnance, property restoration, and reestablishment of public institutions, and challenges related to logistics and security make implementation complex and recovery fragile.

Outlook And Long-Term Challenges

UN experts caution that full recovery of Gaza will take decades even with sustained international support, and restoration of housing, infrastructure, economic activity, and public services will occur in phased stages. Immediate efforts will focus on humanitarian relief, debris clearance, and temporary shelters, and medium-term work will rebuild essential services and critical infrastructure. Long-term recovery will require investment in social systems, utilities, economic development, governance, and public institutions, and political, logistical, and financial challenges will continue to complicate progress. Repeated humanitarian crises or renewed conflict could further delay reconstruction, and ongoing international commitment is necessary to prevent further deterioration.

📰 News On Gaza

+ https://www.theguardian.com/world/2025/nov/25/rebuilding-human-made-abyss-gaza-un

+ https://www.reuters.com/world/middle-east/un-says-states-willing-fund-gazas-70-bln-rebuild-2025-10-14/

+ https://www.theglobeandmail.com/world/article-gaza-palestine-rebuilding-construction-israel-hamas-war/