A Gaza-based construction company has been contracted to build a large United Arab Emirates (UAE)-funded housing compound for tens of thousands of displaced Palestinians in the southern part of the Gaza Strip that remains under Israeli military control, according to Israeli and Palestinian sources with direct knowledge of the plan.
The development codenamed by some diplomats as “Emirates City” would mark one of the most significant reconstruction efforts in Gaza since the war with Hamas began in October 2023 and represents a potentially controversial step in efforts to rebuild before the full withdrawal of Israeli forces from the devastated territory.
Local Firm Leads Ambitious Reconstruction Plan
The project has been awarded to Masoud & Ali Contracting Co. (MACC), a Gaza-based firm with a long track record of building large infrastructure projects in the region, including in both Gaza and the West Bank.
According to sources who spoke to Reuters, MACC will partner with two Egyptian construction companies on the development, which is expected to cover roughly 74 acres near Rafah a city on Gaza’s southern edge that was heavily depopulated and razed during the conflict.
Detailed planning maps reviewed by international sources show the compound will consist of multi-storey, prefabricated trailer-style housing units, designed to shelter tens of thousands of displaced families in a densely packed and semi-permanent layout.
UAE Funding and International Coordination
The United Arab Emirates, a longtime donor to Palestinian relief efforts, has not officially announced the project, but its involvement aligns with its recent $1.2 billion pledge toward Gaza recovery under a broader reconstruction framework.
Officials say the plan is being coordinated with multiple international partners, including the U.S. government’s Board of Peace initiative and a Palestinian technocratic committee, though formal approvals are still pending from the Israeli military.
A UAE official speaking on condition of anonymity, reaffirmed the country’s commitment to supporting humanitarian and reconstruction efforts in Gaza, noting that international cooperation is critical to ensuring aid reaches those in need.
Reconstruction Ahead of Political Agreements
The initiative is seen by some diplomats as part of an effort to begin tangible reconstruction before fully resolving political and security questions notably, the disarmament of Hamas fighters and the complete withdrawal of Israeli forces from parts of Gaza.
Israel’s retention of control over roughly 53 % of Gaza following the October 2023 ceasefire has complicated reconstruction negotiations and raised questions about the feasibility of return and rebuilding in areas still under military oversight.
Local Reaction and Challenges Ahead
While employing a Palestinian contractor and local labourers could help reduce resistance to the project among Gaza’s population, there is uncertainty over whether displaced families would be willing to relocate to a compound located in territory still considered under Israeli control.
Reham Owda, a Palestinian political analyst, described the use of local firms as potentially “more acceptable to Gazans,” arguing that job creation and cultural familiarity could generate public support. However, she cautioned that the political context and security concerns may still limit widespread acceptance.
What’s Next?
No construction has yet begun. Sources say progress depends on Israeli approval of the plans and initial site visits by contractors have been delayed or remain uncertain.
The development of “Emirates City” could become a test case for reconstruction in Gaza, challenging assumptions about post-conflict recovery in areas under foreign military control. Its success or failure may shape broader discussions about how to rebuild and repopulate one of the world’s most war-scarred regions.
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