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Egypt rejects responsibility over Gaza Strip after Israel’s Yair Lapid proposes ‘Egyptian Solution’

Plan envisions Egyptian rule for up to 15 years in exchange for debt erasure

View of the destruction from Israel's military operation in Rafah, in the southern Gaza Strip, January 22, 2025. (Photo: Abed Rahim Khatib/Flash90)

Egypt on Tuesday reiterated its complete opposition to any plan that includes foreign forces administering the Gaza Strip after the war, in response to a new plan presented by Israel’s Opposition Leader and former Prime Minister, Yair Lapid.

Presenting the proposal called “The Egyptian Solution” at an event of the Foundation for Defense of Democracies headquarters in Washington, Lapid said Egypt should take over administration of the enclave for 8-15 years, in exchange for the cancelation of its $155 billion foreign external debt.

Shortly after the presentation, Egyptian sources cited by al-Arabiya said Cairo rejects any proposals that would see it take control of Gaza and stressed that only Palestinians should manage the enclave.

The sources added that “Egypt will not be drawn into any attempts to administer Gaza,” and reiterated that the reconstruction of the Gaza Strip must take place without displacing its residents, in a nod to U.S. President Donald Trump’s controversial plans.

According to Lapid, the main motivation for his plan is for Israel to maintain security in the south by enabling reconstruction and administration without Hamas’s involvement, leading to an eventual “divorce” from Gaza.

“Down the road, 10 years from now, the best solution is for Israel to separate from the Palestinians in a way that contributes to Israel’s security,” Lapid said.

In his presentation, the former prime minister highlighted the historic ties between Egypt and Gaza, including the period between 1948 and 1967, when the enclave was ruled from Cairo.

“Egypt is a key strategic partner and a reliable ally for almost 50 years,” Lapid stated. “A strong, moderate, pragmatic Sunni state, a crucial player in the region.”

In exchange for taking over management and reconstruction of Gaza, Lapid proposed that the international community and regional allies pay off its crushing debt, which continues to depress its economy and stymie possible growth.

The situation whereby a terrorist organization controls a country or territory and leaves it for others to manage the civilian affairs — like Hezbollah in Lebanon — is unacceptable,” Lapid said.

Therefore, Egypt would be tasked with demilitarizing Gaza and preventing the smuggling of weapons into the area during its guardianship, Lapid explained.

Eventually, he said that Egypt, Saudi Arabia and the Abraham Accord countries could gradually integrate the Palestinian Authority in the administration of Gaza. “But that must be done in coordination with Israel and the United States, and with a constant focus on Israel’s security needs,” he said.

“There is no perfect solution,” Lapid acknowledged, but he stressed that his plan would answer “the three big questions the region is asking: Who will manage Gaza? How do we ensure Gaza doesn’t end hopes of normalization between Israel and the Saudis and the creation of [an] anti-Iran coalition? How do we ensure the stability of Egypt and its continued role as a security partner and strategic ally?”

Mark Dubowitz, the CEO of FDD, praised Lapid’s plan as putting “real meat on the bones to address core concerns about Gaza as expressed by President Trump and the international community.”

“This plan will provide a framework for the most urgent task of all — deradicalizing the Palestinian population and preparing them for a new era in which Israel’s existence is no longer questioned,” he added.

FDD Research Analyst Mariam Wahba called the idea of putting Egypt in charge, “the best among a list of bad options.”

Wahba cautioned that if it were to succeed, “Cairo must commit to clear operational standards within Gaza and cooperate with Israel to uncover and dismantle any remaining tunnels. This is an opportunity for Egypt to assert itself as a problem-solver, domestically, regionally, and internationally.”

However, critical voices pointed to the fact that this is already Lapid’s fourth presentation of contradicting plans for the future of Gaza over the past months.

The All Israel News Staff is a team of journalists in Israel.

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