The Media Line: ‘Transforming El-Arish Into a Hub’: Egypt Positions Sinai at the Center of Gaza’s Recovery 

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‘Transforming El-Arish Into a Hub’: Egypt Positions Sinai at the Center of Gaza’s Recovery 

President Abdel Fattah el-Sisi’s plan to anchor Gaza reconstruction in North Sinai signals both a humanitarian mission and a bid to expand Egypt’s economic and geopolitical reach 

By Waseem Abu Mahadi/The Media Line 

When President Abdel Fattah el-Sisi announced on October 19 that Egypt would host a Gaza reconstruction conference next month, it was more than a policy move; it was a statement of power. From the North Sinai port of El-Arish, Cairo is drawing new borders for influence—between war and recovery, between humanitarian duty and economic ambition. 

“Transforming El-Arish into a hub for Gaza’s reconstruction marks a strategic shift in Egypt’s vision for Sinai,” Aboubakr El-Deeb, an economic and political researcher at the Arab Center for Studies, told The Media Line. “It reflects President Sisi’s philosophy of combining security with development and reasserting Egypt’s central role as a regional power.” 

The announcement came with a new “national donation mechanism,” inviting Egyptians to contribute directly to Gaza’s recovery. A February 2025 UN-World Bank assessment estimates $53.2 billion in recovery needs and reports over 90% of Gaza’s housing damaged or destroyed—roughly three-quarters of all buildings and infrastructure affected overall. 

“The reconstruction of Gaza isn’t just a humanitarian duty or political obligation,” El-Deeb stated. “It’s a strategic opportunity to launch an economic renaissance in North Sinai and transform El-Arish into a regional hub for the Arab East.” 

“The Egyptian state has already begun taking practical steps to turn El-Arish into an integrated economic zone,” he added. “We’re talking about logistics centers, small ports, and industrial complexes for producing building materials and supplies necessary for reconstruction.” 

Yet as Egypt promotes reconstruction as both a humanitarian mission and a regional development plan, Palestinian analysts warn that the process risks marginalizing the very people it claims to empower. 

The Palestinian Policy Network, Al-Shabaka, cautions that most “day-after” blueprints remain externally imposed. In a March report, Al-Shabaka researchers Dena Qaddumi and Jehad Abusalim say that reconstruction under ongoing occupation risks repeating “a long history of foreign intervention, profiteering, and high-visibility donor projects that sideline Palestinians and strip them of agency.” 

Shafiq Taluli, a member of the Palestinian National Council, described Egypt’s position as both “historic and moral.” 

“Egypt is not just a mediator in the Palestinian cause—it is a full partner,” he told The Media Line. “It has stood with the Palestinian people from the very beginning, paying the price in blood to defend our right to self-determination.” 

“What Egypt is doing today in El-Arish and Rafah continues a long history of sacrifice,” he said. “Reconstruction is not an economic lifeline for Egypt—it’s a moral and national duty. President Sisi and the Egyptian people view Gaza’s recovery as part of their Arab and humanitarian responsibility, not as a commercial project.” 

Taluli noted that Egypt handled more than 70% to 80% of the aid that reached Gaza during the war, according to Egyptian officials. He said the November conference “will not only rebuild Gaza—it will also open the door for a political process led by the Palestinian Authority and help Gaza return to legitimate Palestinian governance.” 

Still, questions persist over who will ultimately steer the reconstruction process—Egypt and its allies, or the Palestinians themselves. 

A study by the Friedrich-Ebert-Stiftung and the German Institute for International and Security Affairs emphasizes that Gazans “do not regard the Gaza Strip as a separate entity, but as part of the Palestinian territories occupied by Israel since 1967,” stressing that all reconstruction approaches should remain “compatible with the principle of Palestinian self-determination.” 

Egypt treats reconstruction as both diplomatic leverage and economic necessity. 

Since 2023, Egypt has expanded the El-Arish Port on the Mediterranean, adding new berths, storage yards, and transport links as part of its plan to anchor Gaza’s reconstruction in North Sinai. El-Deeb said the initiative could launch a development boom in the region and turn El-Arish into a regional logistics and industrial hub connecting the Arab East with the Mediterranean. 

Egyptian officials are also mapping out an industrial corridor stretching west toward Bir el-Abd, where factories are expected to produce cement, piping, and solar components to meet reconstruction demand and generate jobs in an area long plagued by unemployment and militancy. With inflation surging and debt levels high, Cairo views the expansion of transit fees, logistics services, and contractor work as both an economic lifeline and a source of geopolitical leverage. 

Egypt has secured renewed International Monetary Fund support and a €4 billion EU financing package running through 2027. Analysts say Gulf states—particularly Saudi Arabia, the UAE, and Qatar—are likely to underwrite early phases of Gaza’s reconstruction, though specific commitments remain fluid. Turkey’s disaster agency recently offloaded nearly 900 tons of aid at El-Arish, highlighting the port’s emerging role as a shared regional gateway for humanitarian and reconstruction efforts. 

A prominent Egyptian entrepreneur told The Media Line that “Egypt emerges from this Gaza war stronger economically and diplomatically.” 

“Across the region, everyone is connecting infrastructure—Turkey is rebuilding the old Hejaz Railway down to Medina—yet Israel has isolated itself,” he said. “Everyone’s linking up except them. Even our new gas deal with Cyprus allows Egypt to import from Cypriot fields, replacing Israeli gas.” 

Cairo’s reconstruction plan competes with proposals from Washington and from former UK Prime Minister Tony Blair, who has re-entered Middle East politics as part of the Trump administration’s “Peace Council” plan. That initiative envisions a Gaza International Transitional Authority in El-Arish supervised by a “Board of Peace” chaired by  President Trump and Blair. 

El-Deeb said Cairo uses this balancing act deliberately. “Egypt’s neutral stance between Palestinian factions, the United States, and Israel gives it credibility unmatched by any other actor. That credibility allows Egypt to steer reconstruction toward political and economic goals without exploitation or politicization.” 

Egypt also links reconstruction directly to its national security. “The government works to prevent any mass displacement from Gaza into Sinai while maintaining full border control and coordination with Israel and the United States,” El-Deeb said. 

Israel remains cautious about any plan that fails to guarantee Gaza’s demilitarization. “Egypt’s role is to facilitate and protect, not to replace Palestinian institutions,” Taluli said. “Cairo insists that the reconstruction authority and security arrangements remain under Palestinian control, supported—not substituted—by Arab and international partners.” 

Foreign Minister Badr Abdelatty said Egypt is training about 5,000 Palestinian policemen for eventual service in Gaza, though officials have not announced when the new force will deploy or under whose authority it will operate. 

Yet even as Egypt prepares the logistical groundwork, the political architecture remains contested. On October 23–24, Palestinian factions met in Cairo—with backing from Qatar and Turkey—to discuss postwar governance. Hamas, Islamic Jihad, and other groups attended, though Fatah declined. They agreed Gaza should transition to a temporary technocratic committee but left unresolved the central question of disarming Hamas—an Israeli precondition that shadows all governance talks. 

Israeli officials caution that Turkey’s expanding role in Gaza’s reconstruction reflects ambitions beyond humanitarian aid. Ankara has long sought to act as Gaza’s main external patron, proposing projects such as a port and industrial zones that would extend its influence and challenge Egypt’s control over the Rafah gateway. 

At the same time, environmental advocates warn that heavy industrialization could drain Sinai’s aquifers and harm fragile coastal ecosystems. Local Bedouin leaders demand inclusion in reconstruction contracts, arguing that earlier projects ignored their communities and fueled resentment. 

The November conference will test whether Egypt can rally donors around its vision while meeting Israel’s security requirements and the Palestinians’ demand for self-governance. 

“The goal is to rebuild Gaza physically and politically—to restore Palestinian sovereignty and end the cycle of war, occupation, and division,” Taluli said. “Egypt supports unity under the PLO and President Mahmoud Abbas. That unity is essential for stability and for reopening the path toward a two-state solution.”