Diplomatic deadlock and a lack of progress on the ground have made states that have pledged funding for the so-called “Peace Council” reluctant to honor their commitments.
Displaced Palestinians in Gaza/PHOTO: EPA/EFE
The Gaza Strip is in a state of deep uncertainty, more than seven months after Donald Trump brokered a cease-fire agreement: reconstruction has not begun, the council created to coordinate efforts is facing funding problems, and the Palestinian technocrats appointed to administer the territory are, according to sources, marginalized in Egypt, writes The Guardian.
In a briefing to the UN Security Council on May 15, the Peace Council argued that the main obstacle to implementing Trump's plan is Hamas's refusal to disarm and relinquish control of the enclave. However, people familiar with the activity of the structure say that the lack of financing risks compromising the entire approach.
Nine countries pledged $7 billion (about £5 billion) for an “aid for Gaza” package at the inaugural meeting of the council, chaired by Trump. However, only the United Arab Emirates and Morocco transferred funds, according to a source.
In total, the organization reportedly received $23 million to operate and an additional injection of $100 million to form a future Palestinian police force — the equivalent of about $1.75 for every 100 pledged.
The UN estimates that rebuilding Gaza will require more than $70 billion and span decades
Several states that initially pledged to contribute are now becoming reluctant amid diplomatic stagnation and a lack of concrete progress, according to five sources involved in the talks.
“Countries are hesitant to pay their share,” a diplomat involved in the negotiations said on condition of anonymity. Other sources claim that the war between Israel and Iran provided an additional pretext for delaying payments.
“No one with money and resources wants to work with the Peace Council,” another source said. “And with the conflict with Iran, those with resources now have one more excuse not to pay.”
In a recent intervention, Nickolai Mladenov, the Bulgarian diplomat appointed “high representative” for Gaza, admitted that the Palestinian population was disappointed by the developments.
“The door to Gaza's future remains closed”
“The door to Gaza's future remains closed. It is not what the Palestinians were promised and it is not what they deserve,” he told reporters in Jerusalem. He also warned that the blockade also affects Israel's long-term security.
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His report to the Security Council urged donors to transfer the funds “without delay”, highlighting the gap between stated commitments and actual funding.
But a Peace Council official dismissed the idea of an immediate financial crisis, saying donors remain involved and that some states have already begun transfers for operational costs and training for Palestinian police.
However, other sources dispute these claims, and some states — including Bahrain — are cited as uncertain about contributions.
The US didn't give the money either
The United States has also pledged $10 billion, but the funds have not yet been allocated.
Meanwhile, among the council's expenses are the salaries of the 12 Palestinian technocrats appointed to the future civil administration in Gaza, who are currently in Egypt awaiting security guarantees and diplomatic approvals to enter the territory. According to the sources, they would earn between 16,000 and 17,000 dollars a month, and Mladenov would have an annual salary of about 400,000 dollars.
A council spokesman disputed the figures, saying they were “incorrect” and that salaries were aligned with the Palestinian Authority's grid.
On the ground, the impact remains nonexistent, according to the same sources: “Not a single bottle of water has entered Gaza under the auspices of the NCAG since early 2026.”
More than half a year after the ceasefire agreement, there is no international force to secure Gaza and no clear operational plan. Israeli forces still control more than half of the territory and limit humanitarian aid deliveries.
Most survivors live in makeshift camps, access to clean water is limited, the sanitation system is severely damaged and schools remain closed.
“They didn't even contract to remove the debris”
In parallel, US officials have discussed over the past year turning Gaza into a modern economic hub with advanced digital infrastructure, airports and ports. But, in practice, the reconstruction has not started.
Several companies submitted bids for rubble clearance and construction work, but did not receive firm contracts.
“Nothing happened. They didn't even contract to remove the debris,” a source said.
Meanwhile, officials involved in the plan say the main responsibility for the blockade lies with Hamas, which refuses to disarm.
At stake remains the future of more than two million Palestinians in Gaza, in a territory devastated by war and, according to international assessments, in a deep humanitarian crisis.
Even in the scenario where Hamas would accept disarmament, some experts involved in the process doubt that the current mechanism could deliver the necessary large-scale reconstruction.
A Peace Council official dismissed these reservations, however, saying: “We are more than ready and we would not fail.”
