Hamas Blocks Construction in Rafah Area Designated for New Palestinian City

Hamas blocked Gazan contractors last week from reaching an area in Rafah designated for a new Palestinian city under the Trump administration’s peace plan, according to Hebrew media reports. The contractors, who had come from across the Gaza Strip, told Kan News that armed Hamas members prevented them from proceeding even though the work had been coordinated with the Israel Defense Forces and the Civil Military Coordination Center in Kiryat Gat.

The workers were starting construction on New Rafah, a plan for more than 100,000 housing units. The new city forms part of a larger New Gaza plan presented by Jared Kushner at the World Economic Forum in Davos in January. The United Arab Emirates is underwriting the project with a reported $1.2 billion contribution.

The incident marks the first time Hamas has actively interfered in an activity coordinated by the CMCC and the Board of Peace, the body set up by the Trump administration to oversee the Gaza peace plan.

Hamas in Post-War Gaza A senior diplomat tasked with implementing the Trump administration’s peace plan for Gaza said the group could survive as a political movement after handing over power if it rejected armed conflict and gave up its weapons and military structures.

The diplomat warned that the current stalemate could lead to a permanent division of Gaza along the so-called Yellow Line marking the area controlled by Israel. Israeli security officials have signaled to the U.S. and the Board of Peace that the time is approaching for the resumption of fighting in Gaza.

The phased ceasefire deal has been stalled over Hamas not yet disarming. The first phase saw the release of the last captives seized in southern Israel in October 2023 in exchange for Palestinians detained by Israel. The transition to the second phase envisions Hamas handing over its weapons, Israeli forces withdrawing, and the rebuilding of destroyed areas of the enclave.

Seven months since the ceasefire came into force on October 10, Israeli forces have killed at least 856 Palestinians and control more than 50 percent of the Gaza Strip, according to Palestinian figures. Israel has been extending the area under its effective control since the ceasefire took effect.

In March it marked out new areas where international organisations must coordinate their activities with Israeli forces. A spokesman for the International Committee of the Red Cross described hearing gunfire and explosions daily near the Israeli-held area in southern Rafah.

Humanitarian groups say Israel has not allowed the promised amount of aid into Gaza. Hamas says Israel has killed more than 850 people during the ceasefire, severely restricted aid flows, and continuously moved the Yellow Line westward. The Israeli defence body responsible for coordinating activity in Gaza said 600 lorries of aid a day had entered since the ceasefire began.

Hamas figures suggest only a third of that number entered on some days this month.

“We are not asking Hamas to disappear as a political movement. A political party that disavows armed activity can compete in national Palestinian elections.”

Hamas has said it is committed to handing over power but has so far refused to disarm. In response to the diplomat’s comments, a Hamas spokesperson said pressure must be exerted on Israel to implement the first phase and enter discussions on the second phase. The Armed Conflict Location and Event Data Project reported that Israel carried out 35 percent more attacks in April than in March.

The senior diplomat said Israeli withdrawal from the territory depended on Hamas disarming and handing over power. Both sides now face a choice between implementing the next step of the peace plan or cementing Gaza’s current division into a permanent separation, the diplomat added.

Israeli officials have stated that the terms of the ceasefire deal require Hamas and other factions to have no role in the governance of Gaza. The Board of Peace was established by the Trump administration to oversee the Gaza peace plan. Jared Kushner sits on its executive board.

Plans for construction in the Gaza Strip were presented by Kushner at the World Economic Forum in January.