Saudi-Led Initiative Seeks Palestinian Statehood Amid Gaza Crisis

Saudi Arabia’s opposition to Trump’s Gaza plan is rooted in its long-standing demand for a Palestinian state, encompassing the Israeli-occupied West Bank, Gaza Strip, and East Jerusalem.

Riyadh: Saudi Arabia is spearheading urgent Arab efforts to develop a counterproposal to U.S. President Donald Trump’s controversial Gaza plan, which aims to clear the Palestinian population from the territory, according to 10 sources familiar with the matter.

Arab nations, including Saudi Arabia, Egypt, Jordan, and the United Arab Emirates (UAE), are set to discuss draft proposals in Riyadh this month. These proposals reportedly include a Gulf-led reconstruction initiative and a strategy to sideline Hamas, five sources said.

Trump’s plan, which envisions relocating Palestinians to Jordan and Egypt, has been firmly rejected by Cairo and Amman, with regional leaders warning of its destabilizing effects. The proposal has also threatened Saudi Arabia’s demand for a clear pathway to Palestinian statehood as a prerequisite for normalizing ties with Israel—an agreement that would unlock a broader military alliance between Riyadh and Washington against Iran.

Arab States Scramble for a Unified Response

Reuters spoke to 15 sources across Saudi Arabia, Egypt, Jordan, and other nations to build a picture of the intense diplomatic efforts aimed at formulating an alternative plan that the U.S. president might accept. Some sources suggested branding the initiative as the “Trump Plan” to gain his approval.

An Arab government official confirmed that at least four proposals had already been drafted, with Egypt’s version gaining traction as the primary alternative.

The Egyptian Proposal

Egypt’s proposal, according to three security sources, focuses on:

  • Establishing a national Palestinian committee to govern Gaza without Hamas involvement.
  • Engaging international players in reconstruction without displacing Palestinians.
  • Moving towards a two-state solution.

Saudi Arabia, Egypt, Jordan, the UAE, and Palestinian representatives are expected to refine the proposal in Riyadh before presenting it at the Arab Summit on February 27, an Arab government source said.

Saudi Crown Prince Takes the Lead

Crown Prince Mohammed bin Salman (MbS) has emerged as a central figure in the negotiations. A Jordanian official emphasized his role, stating, “We are telling the Americans we have a plan that works. Our meeting with MbS is going to be critical. He is taking the lead.”

The Saudi crown prince has maintained strong ties with Trump and plays a key role in shaping Arab relations with Washington. Saudi Arabia’s sovereign wealth fund is also hosting a conference in Miami this month, which Trump is expected to attend, Reuters reported. Additionally, Riyadh is preparing to host talks between Trump and Russian President Vladimir Putin on the Ukraine war.

U.S. Secretary of State Marco Rubio acknowledged the upcoming Arab meeting, stating, “Right now the only plan—they don’t like it—but the only plan is the Trump plan. So if they’ve got a better plan, now’s the time to present it.”

Challenges in Gaza’s Post-War Future

Determining Gaza’s future governance remains a contentious issue. Israel has ruled out any role for Hamas or the Palestinian Authority in post-war administration, while Arab nations and the U.S. are unwilling to deploy troops.

Gulf states, which have historically financed Gaza’s reconstruction, are demanding assurances that Israel will not destroy their investments again.

Jordan’s King Abdullah met with Trump at the White House on Monday, reaffirming that he was coordinating with Saudi Arabia and Egypt on a Gaza strategy. In televised remarks, Abdullah stated, “We will be in Saudi Arabia to discuss how we can work with the president and the United States.”

Financial and Security Aspects of the Plan

Three Egyptian security sources revealed that reconstruction efforts would focus on:

  • Creating a buffer zone along Gaza’s border with Egypt to prevent tunnel construction.
  • Establishing 20 temporary housing zones once rubble is cleared.
  • Bringing in around 50 Egyptian and foreign firms for reconstruction.

A regional source said funding could come from international and Gulf donors, with the Arab government official suggesting the possibility of branding it the “Trump Fund for Reconstruction.”

However, a major obstacle remains: removing Hamas from any governing role. While Hamas has expressed willingness to cede administrative control to a national committee, it insists on participating in selecting its members and rejects the deployment of foreign troops without its consent.

Saudi Frustration with Trump’s Gaza Approach

Saudi Arabia’s opposition to Trump’s Gaza plan is rooted in its long-standing demand for a Palestinian state, encompassing the Israeli-occupied West Bank, Gaza Strip, and East Jerusalem.

Public anger in the kingdom has escalated due to the humanitarian crisis in Gaza. In November, Crown Prince Mohammed bin Salman accused Israel of “genocide” during an Islamic summit and reinforced Saudi Arabia’s commitment to a two-state solution.

Trump’s recent diplomatic moves have further strained relations. A day before unveiling his Gaza proposal, he was asked if Saudi-Israel normalization could proceed without a two-state solution. He responded, “Saudi Arabia is going to be very helpful.”

Trump’s Middle East envoy, Steve Witkoff, reportedly outlined a three-month timeline for normalizing ties between Saudi Arabia and Israel during meetings in Riyadh last month. However, Trump’s Gaza plan took Saudi officials by surprise, triggering anger within the royal court.

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“He is not pleased,” a source close to the Saudi leadership said of Crown Prince Mohammed’s reaction.

Saudi state media, often a reflection of official sentiment, have aired strong criticisms of Israeli Prime Minister Benjamin Netanyahu, signaling Riyadh’s deep frustration.

Saudi analyst Aziz Alghashian, familiar with official thinking, described the mood among senior officials: “This is outrageous. More than frustration, this is on another level.”

Trump’s Strategy: A Negotiation Tactic?

Some experts suggest that Trump’s extreme proposal may be a negotiation tactic, reminiscent of his first-term diplomatic playbook. In past foreign policy negotiations, Trump often made maximalist demands before settling on more moderate agreements.

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Still, his Gaza plan has complicated normalization talks with Saudi Arabia. Former Saudi intelligence chief Prince Turki al-Faisal told CNN last week that if Trump visits Riyadh, “I’m sure he will get an earful from the leadership here.”

Asked whether normalization talks with Israel could advance under the current circumstances, Prince Turki responded: “Not at all.”

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