London, UK – The Financial Times has revealed that the Peace Council fund, linked to US President Donald Trump’s plans for the Gaza Strip, is suffering from a severe funding shortfall. This threatens to disrupt several reconstruction and development projects that were supposed to be implemented in the Strip in the coming phase.
The newspaper stated that the fund, which was proposed as part of US and regional initiatives to support stability and improve the humanitarian situation in Gaza, has so far failed to secure sufficient financial resources to fulfill its pledges. This is due to the reluctance of several international bodies and donors to inject new funds because of the political and security complexities.
The report added that the uncertainty surrounding the sector’s future, coupled with ongoing military tensions and political divisions, has led many investors and international institutions to hesitate before engaging in long-term projects in Gaza.
The report indicated that several infrastructure, housing, and basic services projects are now threatened with postponement or cancellation if the funding crisis persists. This could exacerbate the humanitarian and economic pressures on the sector’s residents, who are already suffering from dire living conditions.
The newspaper also explained that the US administration had been counting on Gulf and international contributions to support the fund. However, recent political developments and disagreements over the mechanisms for managing reconstruction funds have negatively impacted the volume of expected financial pledges.
This development comes at a time of escalating international warnings about the deteriorating humanitarian situation in Gaza. International organizations emphasize that reconstruction is a pressing priority to ensure stability and prevent the humanitarian crisis in the Strip from worsening.
Observers believe that any delays in funding reconstruction projects could directly impact the prospects for de-escalation and the restoration of stability. This is especially true given the complex political and security considerations at both the regional and international levels that link the humanitarian situation in Gaza.
