Gaza reconstruction to cost US$71 billion after devastating war, UN-EU assessment finds

GENEVA,SWITZERLAND: Rebuilding the Gaza Strip after more than two years of war will require at least US$71.4 billion, according to a joint assessment by the United Nations, the European Union, and the World Bank.

The final Gaza Rapid Damage and Needs Assessment (RDNA), released on 20 April, describes a territory devastated by conflict, where large-scale destruction of infrastructure, economic collapse, and humanitarian distress have combined to create what officials called an “unprecedented loss of life and a catastrophic humanitarian crisis”.

“Recovery and reconstruction needs are estimated at around US$71.4 billion,” the assessment stated, outlining both immediate and long-term financial requirements.

The report estimates that US$26.3 billion will be needed within the first 18 months to restore essential services, rebuild critical infrastructure, and support economic recovery.

Scale of destruction across infrastructure

The assessment found that Gaza’s physical infrastructure has sustained damages amounting to US$35.2 billion, while economic and social losses total US$22.7 billion.

Housing has been the hardest hit sector, accounting for more than half of total damages at approximately US$18 billion. Commerce and industry, transport, and water and sanitation systems have also suffered extensive destruction.

According to the report, around 371,888 housing units have been destroyed or damaged, representing a substantial proportion of the territory’s housing stock. More than 60 per cent of the population has lost their homes.

The destruction extends beyond housing. More than half of hospitals are no longer functional, while nearly all schools have been damaged or destroyed. Many remaining facilities have been repurposed as shelters for displaced civilians.

The report noted that “basic services have been severely degraded”, leaving the population vulnerable to disease outbreaks due to damaged water, sanitation, and waste management systems.

Mass displacement and humanitarian impact

The conflict has displaced approximately 1.9 million people, nearly the entire population of Gaza.

Many have been forced to move multiple times during the conflict.

The humanitarian consequences have been severe. The report states that deprivation across living conditions, livelihoods, food security, and social inclusion has pushed back human development in Gaza by an estimated 77 years.

Healthcare capacity has been critically reduced, with fewer than half of hospitals and less than 38 per cent of primary healthcare centres partially operational.

Children and women have borne a disproportionate share of the crisis.

Nearly all children are reported to require mental health and psychosocial support, while over 40 per cent of pregnant and breastfeeding women are severely malnourished.

The report also highlights that 728,000 school-aged children have been out of formal education for more than two years, with hundreds of teachers and school personnel killed during the conflict.

Casualties and conflict background

The war was triggered by the Hamas attack on Israel on 7 October 2023, which resulted in approximately 1,671 deaths, including Israeli and foreign nationals, and the abduction of 251 hostages.

The subsequent Israeli military campaign in Gaza has killed more than 72,000 people, mostly civilians, according to figures from the territory’s health ministry, which the United Nations considers reliable.

The RDNA notes that the conflict has caused “widespread displacement, extensive damage to social, physical, and productive infrastructure, and plunged the strip into a deep humanitarian crisis”.

A fragile ceasefire has been in place since October 2025, following two years of intense hostilities. However, the report indicates that violence has not fully ceased, with additional casualties reported even after the agreement.

Economic collapse and long-term losses

Gaza’s economy has been severely impacted, contracting by approximately 84 per cent during the conflict period.

Economic activity nearly came to a complete halt in 2024, with only limited recovery in 2025 due to temporary ceasefire conditions. The report emphasises that this modest growth reflects a low base rather than genuine recovery.

Employment has also been devastated. Nearly three-quarters of the pre-conflict workforce lost their jobs, with an employment-to-population ratio dropping to 9.3 per cent.

More than 80 per cent of employees have been unable to work due to destruction of workplaces, infrastructure disruptions, and shortages of essential supplies.

The report warns that economic losses will continue to accumulate until substantial recovery is achieved, with projections extending up to three years into the future.

Sector-by-sector recovery needs

The RDNA identifies housing, agriculture, health, and commerce as priority sectors, accounting for the majority of reconstruction costs.

Housing alone requires an estimated US$16.2 billion, reflecting the scale of destruction and the urgent need for shelter solutions.

Agriculture and food systems require US$10.5 billion, driven by the need to address food insecurity and rebuild production capacity.

Health sector recovery is estimated at US$10 billion, including immediate investments in temporary facilities and long-term rebuilding of infrastructure.

Commerce and industry will require US$9 billion to restore economic activity and support business recovery.

The report also highlights the need to remove more than 68 million metric tonnes of debris, with costs exceeding US$1.7 billion.

Governance and reconstruction framework

The assessment emphasises that reconstruction efforts must be “Palestinian-led” and aligned with governance reforms involving the Palestinian Authority.

This approach is linked to United Nations Security Council Resolution 2803, adopted in November 2025, which endorsed a comprehensive plan to end the conflict and support Gaza’s redevelopment.

The resolution welcomed the establishment of a Board of Peace to coordinate reconstruction efforts and manage international support.

According to the report, institutional arrangements for governance, including coordination between international actors and Palestinian authorities, will be critical to successful recovery.

Conditions for successful recovery

The United Nations and the European Union stressed that reconstruction cannot proceed without key enabling conditions.

These include a sustained ceasefire, adequate security arrangements, and unimpeded humanitarian access.

The report also calls for the free movement of people, goods, and reconstruction materials within Gaza and between Gaza and the West Bank.

“Without such conditions, neither recovery nor reconstruction can succeed,” the joint statement warned.

Officials further emphasised that humanitarian assistance and reconstruction must proceed simultaneously, ensuring a transition from emergency relief to long-term rebuilding.