Israel Seeks Peaceful Gaza, Hesitates on Reconstruction Funding: Economy Minister
Israel seeks a peaceful Gaza but faces tough decisions on reconstruction. Economy Minister Nir Barkat emphasized that rebuilding efforts depend on Hamas committing to lasting peace. Speaking in Davos during the World Economic Forum, Barkat compared Gaza’s future to Dubai, urging development focused on stability and mutual growth.
Since the ceasefire with Hamas took effect, the focus has shifted to long-term peace. Israel’s military action followed a Hamas attack on October 7, 2023, which killed 1,200 Israelis and took over 250 hostages. The war has devastated Gaza, displacing millions and causing over 46,000 deaths, according to Palestinian health officials.
Barkat stated that Israel would support international efforts to rebuild Gaza, provided it does not pose a threat to Israeli security. He pointed to potential funding from countries like the UAE and Saudi Arabia, but Israel remains undecided on direct financial contributions. Barkat underscored that Israel cannot allow Hamas to maintain power in Gaza, as donors like the U.S. and UAE also oppose Hamas’ control.
With Donald Trump back in office, Barkat highlighted stronger U.S.-Israel ties. He noted Trump’s support could expand the Abraham Accords, which normalized Israel’s relations with UAE and Bahrain. Barkat expressed optimism about future relations with Saudi Arabia and other Arab nations under this new political momentum.
In domestic matters, Barkat opposed Israel’s 2025 austerity budget, proposing bold economic growth strategies instead. He argued that increased spending and debt could stimulate growth, eventually offsetting war expenses.
Turkey, meanwhile, hinted at resuming trade ties with Israel if the Gaza ceasefire proves stable. Barkat said no progress has been made in talks but acknowledged the potential for improvement if calm persists.
Israel remains focused on rebuilding peace and security in Gaza while balancing economic priorities and regional diplomacy.
