The latest US proposal to displace two million Palestinians from Gaza to Egypt and Jordan has put Cairo in a difficult diplomatic position, testing its long-standing alliance with Washington. As Egyptian intelligence officials work to stabilize the fragile ceasefire in Gaza, the proposed mass relocation has sparked widespread opposition from the Egyptian public and government alike.
President Abdul Fattah al-Sisi has launched an intensive diplomatic effort to counter the plan, emphasizing Egypt’s commitment to Palestinian statehood. Many Egyptians fear that relocating Gazans to Egypt would bring the conflict within their own borders, threatening national security and stability. A sentiment echoed by Abdo, a civil engineer in Cairo, who warns that such a move would effectively shift the battlefront into Egyptian territory.
The economic fallout of the ongoing Gaza war has already been significant for Egypt, with an estimated $8 billion loss in Suez Canal revenues due to attacks on shipping routes. To offset potential further instability, Egypt is advocating for a reconstruction plan in Gaza rather than displacement. Hisham Talaat Moustafa, a prominent real estate tycoon close to Sisi, has proposed a $20 billion project to build 200,000 homes in Gaza, ensuring that Palestinians remain in their homeland.
This approach aligns with broader Arab opposition to forced displacement. While Jordan’s King Abdullah II has adopted a diplomatic stance, engaging with the US to address humanitarian concerns, Egypt has refused to engage on the relocation issue directly. Reports indicate that Sisi is unwilling to visit Washington while the plan remains on the table, signaling a shift in the traditionally close Egypt-US relationship.
Egyptian television hosts and commentators have been vocal in their criticism of US pressure, questioning the value of American military aid, which amounted to $1.3 billion last year. The government, meanwhile, is working with other Arab states to devise an alternative plan for Gaza’s future. A proposed Gulf-funded initiative aims to rebuild the region while sidelining Hamas, a key US and Israeli demand.
Despite these efforts, the challenge remains formidable. Israel’s right-wing government is resistant to Palestinian Authority (PA) involvement, complicating the search for a governance model acceptable to all parties. However, Egypt, along with other Arab nations, remains committed to a two-state solution, seeking a just resolution to the Palestinian issue.
As tensions rise, Egypt stands firm in rejecting mass displacement while pushing for an alternative reconstruction-driven approach. Whether the US will heed these concerns remains uncertain, but for now, Cairo’s strong stance is reshaping regional diplomacy.
