Palestinian Company Selected to Build UAE-Funded Housing for Gaza Displaced

Sources reveal that a Gaza-based construction firm will build a housing compound funded by the United Arab Emirates for tens of thousands of displaced Palestinians. The project would be located in southern Gaza territory currently under Israeli military control.

A construction company based in Gaza has been selected to develop a housing complex funded by the United Arab Emirates for tens of thousands of displaced Palestinians in territory currently controlled by Israeli forces, according to multiple sources familiar with the arrangement.

Four sources, including Israeli officials and Palestinian business leaders, identified the contractor as Masoud & Ali Contracting Co (MACC), a Gaza-based firm with decades of experience on major construction projects throughout Gaza and the West Bank.

The housing development represents an effort to begin rebuilding without waiting for Israeli forces to withdraw from Gaza, which is supposed to occur alongside Hamas disarmament in the next stage of President Trump’s ceasefire framework.

Using Palestinian workers for construction may help minimize local opposition to the project, though it’s uncertain whether significant numbers of Palestinians would choose to live or work in areas under Israeli control.

The UAE has not yet publicly announced the housing initiative, which some diplomatic sources have nicknamed “Emirates City.” Planning documents reviewed by Reuters show the development would be constructed near Rafah in southern Gaza, an area cleared and demolished by Israeli forces during the conflict with Hamas.

One Palestinian business source with inside knowledge of the plans said MACC would collaborate with two Egyptian companies on the project. He described the development as covering approximately 74 acres and designed to accommodate tens of thousands of residents in prefabricated trailer-style units arranged in multi-story configurations.

All sources requested anonymity when discussing plans that remain officially unannounced.

MACC representatives declined to provide comment. Israeli military officials did not respond immediately to requests for comment, and Hamas spokespeople also did not respond.

A UAE official avoided directly addressing the housing plans but stated the country remains “firmly committed to supporting all international relief and recovery efforts in Gaza, in close collaboration with partners, to ensure that life-saving assistance reaches those in need swiftly and effectively.”

Following the October ceasefire agreement between Israel and Hamas, Israeli forces maintain control over 53% of Gaza, where they have destroyed numerous structures and established military installations. Gaza’s population of over 2 million people is now mostly restricted to a narrow coastal area still under Hamas control, living primarily in temporary shelters and damaged structures.

Reconstruction efforts beginning in Rafah form a central component of Trump’s war-ending strategy, though other crucial elements remain unresolved, including Hamas disarmament and Israeli military withdrawal.

Trump’s initiative operates through his Board of Peace, an international leadership group that supervises a Gaza-focused body comprising officials and business leaders, plus a Palestinian technical committee intended to take over Gaza governance from Hamas.

At a Board of Peace gathering last week, the UAE committed $1.2 billion for Gaza assistance. However, the housing compound plans were not part of the reconstruction presentations at that conference.

A U.S. official previously confirmed to Reuters that the UAE is coordinating the housing initiative with Washington, the Board of Peace, and the Palestinian technical committee.

Since fighting began in October 2023, the UAE has emerged as one of Gaza’s largest donors, contributing nearly $3 billion in aid according to its foreign minister. The UAE developed strong ties with Israel after normalizing relations in 2020 through a U.S.-mediated agreement.

The Palestinian business source familiar with the compound planning explained that MACC and the two Egyptian firms received their contracts through a major Egyptian company, which he declined to name. This Egyptian company would receive payment from the UAE, he said.

Construction has not yet started, partly because Israeli authorities have not approved the compound’s blueprints, according to the source.

A Western diplomat briefed on the project said contractors were supposed to visit the construction site earlier this month, though it’s unclear whether that inspection occurred.

MACC’s website indicates the company has constructed desalination facilities, water pumping stations, solar energy installations, bridges and buildings throughout Gaza and the West Bank, working with funding partners including the World Bank and USAID.

Palestinian political analyst Reham Owda said hiring a Palestinian company instead of bringing in foreign workers would be “more acceptable to Gazans” because it would generate employment opportunities and respect local cultural considerations.

“It will gain wide acceptance because it will help solve the housing crisis, accelerate reconstruction, and employ Gaza’s workforce,” Owda explained.