EU and UN say Gaza recovery and reconstruction will need $71.4bn over next decade
EU and UN rapid assessment says Gaza recovery and reconstruction will cost $71.4bn over 10 years; $26.3bn is needed in the first 18 months to restore services.
A final rapid damage and needs assessment released by the European Union and the United Nations on April 20, 2026, finds that Gaza recovery and reconstruction will require an estimated $71.4 billion over the next decade. The report, prepared in cooperation with the World Bank, identifies urgent financial and institutional requirements and sets out the scale of physical destruction, economic loss and human displacement. It emphasizes that $26.3 billion is needed within the first 18 months to restore basic services, rebuild critical infrastructure and support an economic restart.
Assessment scope and methodology
The assessment is described as a final rapid evaluation of damage, losses and recovery needs across the Gaza Strip following 24 months of conflict.
It was compiled by EU and UN teams with analytical inputs from the World Bank to quantify physical damage, economic losses and priority recovery actions.
The report provides a multi-year financing envelope and short-term milestones intended to guide international planning and programming.
It is presented as an evidence base aligned with relevant United Nations Security Council decisions, including resolution 2803.
Cost breakdown: physical damage and economic loss
The assessment estimates total reconstruction and recovery needs at $71.4 billion over ten years.
Of that sum, $35.2 billion represents direct physical damage to infrastructure while $22.7 billion reflects economic and social losses.
These figures are intended to inform phased funding requests and to prioritise interventions that restore essential services and revive livelihoods.
The document separates immediate rebuilding needs from longer-term investments in resilience and institutional capacity.
Short-term priority: $26.3 billion in the first 18 months
The EU and UN say $26.3 billion is required in the initial 18 months to re-establish basic services and restart critical sectors.
This front-loaded funding is aimed at restoring electricity, water, health services, schools and essential transport links to prevent further humanitarian deterioration.
The first-phase financing is framed as essential to stabilise conditions on the ground and to create the operational space for more comprehensive reconstruction over the following years.
Officials stress that delays in mobilising this tranche would exacerbate human suffering and raise the overall cost of recovery.
Scale of destruction to housing, health and education
The assessment documents extensive destruction across residential and public infrastructure, noting more than 371,888 housing units were destroyed or damaged.
More than half of hospitals are reported to be out of service, and nearly all schools have been damaged or rendered unusable.
The report highlights the direct impact on civilians as well as the disruption of service delivery that undermines everyday life and long-term recovery prospects.
Rebuilding homes, repairing hospitals and reconstructing schools are identified as immediate priorities tied to stabilising communities and restoring basic human needs.
Economic contraction and human development reversal
Gaza’s economy is reported to have contracted by approximately 84 percent, according to the assessment, producing deep and widespread livelihood losses.
The report calculates an unprecedented loss in human development equivalent to a 77-year setback, reflecting declines in health, education and income indicators.
Displacement is extensive: roughly 1.9 million people have been uprooted, often multiple times, and more than 60 percent of the population have lost their homes.
Women, children, people with disabilities and other vulnerable groups are singled out as bearing the heaviest burdens and requiring targeted protection and support.
Governance, UNSC Resolution 2803 and Palestinian leadership
The EU and UN underscore that recovery and reconstruction must be Palestinian-led and explicitly tied to a transition to Palestinian Authority governance in line with United Nations Security Council resolution 2803.
The assessment argues that material rebuilding and institutional rehabilitation are inseparable from establishing a clear political pathway toward a two-state solution.
It notes that implementation of resolution 2803 and the comprehensive recovery plan cannot succeed without both the physical reconstruction of Gaza and the restoration of functioning public institutions.
The report calls for international support that actively enables Palestinian leadership and a defined roadmap toward statehood across the occupied Palestinian territories.
Enabling conditions and international coordination
The assessment stresses that a set of enabling conditions is required for effective implementation, including secure access for materials and personnel, predictable funding flows, and safeguards for accountable delivery.
Donors, UN agencies and development banks are urged to coordinate behind the assessment’s phased priorities to maximise impact and prevent duplication.
EU and UN authors also link the pace of reconstruction to broader political progress, arguing that sustainable recovery depends on parallel steps toward a durable political settlement.
They call for immediate action to fund the short-term package while committing to longer-term investments that rebuild institutions and livelihoods.
Mobilising the necessary resources and political will will be the immediate challenge for the international community and regional partners as they respond to the scale of need identified in the assessment.
The assessment sets out a technical roadmap and urgent financing targets, but it concludes that success will depend on both rapid financial mobilisation and a concerted effort to re-establish Palestinian-led governance, protection of civilians, and a credible pathway to a lasting political solution.