Partial Rafah Rebuilding Risks Delaying Cairo Conference

Two boys shelter from the rain while sitting on a donkey cart in Deir al Balah in the central Gaza Strip (AFP)
Two boys shelter from the rain while sitting on a donkey cart in Deir al Balah in the central Gaza Strip (AFP)
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Partial Rafah Rebuilding Risks Delaying Cairo Conference

Two boys shelter from the rain while sitting on a donkey cart in Deir al Balah in the central Gaza Strip (AFP)
Two boys shelter from the rain while sitting on a donkey cart in Deir al Balah in the central Gaza Strip (AFP)

Discussion has intensified over plans for partial reconstruction in parts of Gaza, even as official Arab statements insist that rebuilding must begin across the entire enclave.

The debate comes nearly two weeks after the postponement of the Cairo Conference on Gaza reconstruction, intended to marshal large-scale funding to revive the devastated territory, amid estimates that rebuilding could cost as much as $35 billion.

Hebrew media leaks about these “partial plans,” targeting areas including the southern city of Rafah, say the government of Israeli Prime Minister Benjamin Netanyahu has approved financing for them.

Experts who spoke to Asharq Al-Awsat said the move aligns with earlier US plans in case efforts to move to the second phase of the Gaza agreement fail.

They said the Cairo reconstruction conference would be delayed for some time but would eventually take place, although not soon, and that its outcomes would face Israeli obstacles during implementation.

The Yedioth Ahronoth newspaper quoted an Israeli official as saying Tel Aviv had given preliminary approval to cover the cost of removing rubble from Gaza and to take responsibility for the massive engineering operation, following a request from the United States. Israel would begin by clearing an area in Rafah in southern Gaza in preparation for reconstruction.

According to the newspaper’s sources, Israel could be required to remove rubble from the entire Gaza Strip, a process expected to take years and cost more than $1 billion.

The United States wants reconstruction to begin in Rafah in the hope it can serve as a successful model for US President Donald Trump’s vision for rehabilitating Gaza, drawing residents from across the enclave, with other areas rebuilt in later phases, the Israeli paper said.

The Israeli leaks come about two weeks after comments by Egyptian Foreign Ministry spokesman Tamim Khallaf, who told Asharq Al-Awsat that Cairo was working with regional and international partners to prepare the conditions needed for the success of the Early Recovery and Reconstruction in Gaza conference. His remarks came in response to questions about the reason for its delay.

On Nov. 25, an informed Egyptian source told Asharq Al-Awsat the conference would not be held as scheduled at the end of November and would be postponed, citing the escalation in Gaza and Cairo’s desire to see better conditions on the ground to achieve its goals.

The comments coincided with reports of Israeli plans to divide Gaza into two parts, one under Israeli control and the other under Hamas control, covering no more than about 55 percent of the territory.

An emergency Arab summit hosted by Cairo on March 4 adopted a Gaza reconstruction and development plan aimed at early recovery and rebuilding the enclave without displacing Palestinians.

The plan outlines specific phases over up to five years at an estimated cost of $53 billion. Egypt also called for an international conference to support Gaza’s reconstruction, in coordination with the United Nations.

Rakha Ahmed Hassan, a member of the Egyptian Council for Foreign Affairs and a former assistant foreign minister, said guarantors and some mediators of the Gaza agreement would not accept such partial plans, viewing them as a violation of the deal.

He said they come amid Israeli moves to obstruct the second phase by arguing that disarming Gaza must come first.

Palestinian political analyst Abdel Mahdi Mutawe said Israel’s approval of partial reconstruction funding and renewed promotion of the idea indicated little chance of reaching a second phase, pushing instead toward an alternative plan previously discussed by Jared Kushner, Trump’s son-in-law.

That plan envisages building in areas outside Hamas control as long as the group does not accept disarmament.

Mutawe said reviving talk of partial reconstruction delays comprehensive rebuilding and sends a message to potential donors that obstacles remain, further delaying the Cairo conference.

In October, Kushner said at a press conference in Israel that rebuilding Gaza in areas under Israeli army control was being carefully studied, with considerations underway in areas controlled by the Israeli military that could be secured to begin building a “new Gaza.”

He said no funds would be allocated to reconstruction in areas still controlled by Hamas. The partial plans run counter to Arab positions.

Egyptian President Abdel Fattah al Sisi and Bahrain’s King Hamad bin Isa Al Khalifa stressed in a phone call on Thursday the need for full implementation of the ceasefire agreement in Gaza and the inevitability of starting reconstruction across the entire enclave, according to an Egyptian presidency statement.

In an interview with US broadcaster Tucker Carlson at the Doha Forum on Sunday, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani reaffirmed that the Palestinians will not be abandoned but that cheques to rebuild what others have destroyed won’t be signed.

Hassan said Qatar’s recent call for Israel to bear the cost of the destruction it caused reflected a firm Arab position aimed at preventing a repeat of the devastation.

He added that Egypt was also aware of Israeli moves toward an alternative plan involving partial reconstruction in Rafah, but that Cairo sought to strengthen a unified Arab stance in favor of comprehensive rebuilding, which would begin with the second phase that includes an Israeli withdrawal.

Mutawe said the Arab position would certainly exert pressure, but acknowledged differing views among Arab states.

He said the Cairo reconstruction conference was tied to progress in the second phase and the issue of disarmament in Gaza. It would eventually take place, he said, but not in the near term, and its outcomes would remain vulnerable to Israeli obstacles.



Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
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Disputes Over Quotas Stall Iraq Government Talks

A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)
A handout image released by the Iraqi Parliament Media Office on April 11, 2026, shows Iraqi members of parliament attending a session to elect a new president, in Baghdad. (Photo by IRAQ PARLIAMENT MEDIA OFFICE / AFP)

Rivalries within Iraq’s Shiite Coordination Framework have led to a political deadlock over naming a new prime minister, as internal disagreements persist over both the selection mechanism and the division of ministerial posts among the bloc’s factions.

According to sources, a meeting of Coordination Framework leaders - postponed several times in recent days - will focus on finding a solution that reconciles two approaches: one based on the “electoral weight” of member blocs, and the other on “political consensus” to choose a compromise candidate acceptable to all parties.

The bloc has failed to agree on a nominee during two previous meetings after votes between two leading candidates ended in a tie, deepening divisions and delaying a decision. The upcoming session is seen as potentially decisive, though another postponement remains possible if differences persist.

An Iraqi political source said a decision on the prime minister could come within hours as the constitutional deadline approaches.

“I expect the matter to be settled one way or another, because next Saturday marks the final deadline, and continued delay is already having a negative impact even among their own base,” the source said.

The source added that if the alliance adopts the criterion of electoral weight, Ihsan al-Awadi, the candidate backed by Prime Minister Mohammed Shia al-Sudani, would have the strongest chances. However, if the decision remains confined to the bloc’s leadership, the contest would stay within a pool of 12 votes, with the balance possibly tipping in favor of Bassem al-Badri.

The dispute extends beyond the selection mechanism to include internal bargaining over the distribution of ministries and sovereign portfolios. Some factions have tied their support for any candidate to the size of their share in the next government, further complicating negotiations.

Two prominent candidates have emerged with nearly equal backing within the Coordination Framework, resulting in a deadlock and reviving the option of a compromise candidate if neither consensus nor a majority decision can be reached.

The Coordination Framework, formed after the most recent elections, includes several major Shiite forces, among them alliances led by former prime ministers Nouri al-Maliki and Haider al-Abadi, as well as the bloc of current Prime Minister Mohammed Shia al-Sudani, who is heading a caretaker government. Political pressure is mounting as the constitutional deadline nears for the president to designate a new prime minister.

The election of President Nizar Amidi has triggered the formal government formation process, with a constitutional deadline set to expire on April 26, placing political forces under pressure to avoid a return to prolonged deadlock.

With complications persisting, there are many scenarios, including a last-minute agreement, further delay, or a shift toward a compromise candidate. The standoff underscores fragile cohesion within the Shiite camp and a widening gap between electoral calculations and the demands of political consensus.


Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
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Fallout from Iran War Casts Shadow over Egypt’s New Budget

Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)
Egypt’s House of Representatives being briefed on the government’s outlook on the state budget (House of Representatives)

The economic fallout from the Iran war has cast a shadow over Egypt’s new state budget, Finance Minister Ahmed Kouchouk told parliament on Wednesday, as he presented the draft before it was referred to specialized committees for discussion, with the government pledging swift amendments “to enhance its ability to deal with current and potential risks.”

Kouchouk’s statement came a day after Prime Minister Mostafa Madbouly addressed the House of Representatives, focusing on the damage caused by the conflict and ways to manage its repercussions.

He said the government was treating the current regional escalation as a “prolonged crisis,” whose end is difficult to predict given the complexity and overlap of regional and international dynamics, and suggested its economic effects could last through the end of the year.

During the presentation of the 2026-2027 fiscal year budget, 600 billion Egyptian pounds ($11.5 billion) were allocated for energy subsidies, including electricity support, which rose by 39%, according to the finance minister.

A total of 832.3 billion pounds was earmarked for social protection - a 12% annual increase - to support the most vulnerable groups, alongside 90 billion pounds set aside for programs to support economic activity. (The dollar is equivalent to about 52 Egyptian pounds.)

The minister said spending priorities focus on healthcare, education, social protection, and support for production and exports, alongside flexible precautionary policies to address potential challenges and strike a balance between fiscal discipline and economic stimulus. He pointed to “uncertainty in markets and disruptions in trade and supply chains,” describing them as “major challenges and pressures on economies, especially emerging markets.”

Data presented to lawmakers also indicated a 3% reduction in fuel consumption and a 15% cut in electricity and lighting use in response to recent developments. Regarding national projects, the government decided to postpone or slow the implementation of “slow-moving” or fuel-intensive projects on an exceptional basis for three months, renewable if needed.

According to the minister, the government has also decided to limit spending in the final quarter of the current fiscal year to essential expenditures only, including wages, salaries, pensions, and the needs of the health, electricity and petroleum sectors.

Egypt’s budget has been affected by rising costs of securing energy supplies, prompting the government to increase subsidy allocations in the new budget while relying on consumption rationalization and hedging against future developments in the conflict, said economist Mohieddin Abdel Salam. He noted that Egypt has been significantly impacted by rising oil and gas prices.

Figures presented by the finance minister showed the government has mobilized about 135.6 billion pounds since early March to ensure the stability of vital sectors. This includes 90.6 billion pounds for the energy sector, 30 billion pounds to secure essential commodities, subsidized goods, wheat and sugar, and 15 billion pounds to support the healthcare sector and provide medicines.

Abdel Salam told Asharq Al-Awsat that uncertainty remains over Egypt’s ability to attract foreign investment, as some investors are wary of committing funds in the region due to war-related risks. However, he said Egypt could still benefit from opportunities if it manages to distance itself from ongoing tensions.

He noted that these conditions have led to tighter fiscal policies, reflected in holding interest rates steady rather than cutting them, as well as austerity measures and reduced spending by government institutions.

This can be seen in the new budget, he added, which focuses on vital sectors and strengthening social support, particularly amid declining revenues from the Suez Canal and tourism, and potential impacts on remittances from Egyptians abroad.


French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center
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French Delegation in Algeria to Mend Ties, Rebuild Trust

Chairman of the Algerian Economic Renewal Council, center
Chairman of the Algerian Economic Renewal Council, center

A delegation from the Mouvement des Entreprises de France (Medef) is set to visit Algeria on Thursday, with its president Patrick Martin leading around 40 senior company executives, in an economic push aimed at repairing trade relations strained by political tensions over the past two years.

According to sources within the French diplomatic network based in Algeria, the mission seeks to inject new momentum into direct economic dialogue between the two sides and to restore the position of French companies in the Algerian market.

The visit is also seen as a practical step toward rebuilding trust between economic stakeholders, with the goal of moving past a period of stagnation and reviving trade and investment flows.

Reports cited by Algerian daily El Watan on Wednesday, quoting sources close to the Algerian Economic Renewal Council - the country’s largest employer body - said Medef’s visit will last two days.

The trip comes after a prolonged period of tension in bilateral relations that has affected economic exchanges. Observers say the move is not merely a protocol visit but an attempt to relaunch dialogue between business communities on both sides.

The main objective is to resume talks within the framework of the Algeria-France Economic Relations and Friendship Council, chaired by businessman Kamel Moula, who also heads the Algerian Economic Renewal Council, at a time when French economic presence in Algeria has significantly declined in recent years.

Sources from the Algerian Economic Renewal Council told Asharq Al-Awsat that the planned meetings in Algiers will be limited to bilateral sessions focusing on priority sectors, notably food security and energy - through projects linked to solar power and green hydrogen - as well as healthcare, digitalization and construction.

The mission offers French companies an opportunity to reaffirm their presence and reassure partners of their long-term commitment, the same sources said. It also aims to address certain obstacles, including lengthy administrative procedures, which are estimated to have tripled since 2024.

Observers consider the visit a key test of prospects for reviving economic relations between the two countries.

The Medef visit comes amid signs of a gradual political thaw in relations between Algiers and Paris. A visit by French Interior Minister Laurent Nunez to Algeria in February, during which he was received by President Abdelmadjid Tebboune at the presidential palace, helped pave the way for a measured easing of tensions.

In recent media comments, Michel Bisac, head of the Algerian-French Chamber of Commerce and Industry, warned of the potential fallout from the political crisis between Algeria and France, fueled by political and media circles close to the far right. The crisis erupted in summer 2024 after Paris recognized Moroccan sovereignty over Western Sahara.

“We are in a very delicate situation,” Bisac said, expressing regret over threats “not only to political ties but also economic relations between the two countries.”

He added that if Algeria were to apply to France the same trade measures it previously imposed on Spain after Madrid backed Morocco’s autonomy plan for Western Sahara in 2022, “the bill would be costly for the French economy, with losses approaching 4.8 billion euros.”

That figure reflects the value of French exports to Algeria, a key pillar for several industrial sectors’ foreign trade. Bisac noted that around 6,000 French companies currently operate “for and with Algeria,” supplying goods and services or engaging in industrial partnerships.

“These companies would face serious difficulties if the situation worsens,” he warned, stressing the growing fragility of bilateral economic exchanges. “Until recently, I had great hope ... but today I want to clearly stress the need to avoid escalation.”