Establishment of a Financial Intermediary Fund for Gaza Reconstruction and Development - November 20, 2025 - Proposal

Jul 19, 2026

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Establishment of a dedicated Financial Intermediary Fund (FIF) for Gaza Reconstruction and Development (GRAD) is proposed to support recovery, reconstruction, and development activities in Gaza. The proposal frames urgency created by mass destruction and economic collapse, and links funding to a UN Security Council resolution adopted on November 17, 2025. The World Bank Group seeks approval to act as limited Trustee, transferring resources to a Peace Board authorized under the Comprehensive Plan to End the Gaza Conflict while maintaining World Bank–acceptable fiduciary standards.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages14

Reading Time35 min

Introduction

Context and urgency for reconstruction

UN Security Council resolution and financing framework

World Bank Group role and limited Trustee arrangement

Context and World Bank Group’s Experience

Context

Rationale for the Gaza Reconstruction and Development Fund

Objectives, complementarity, and coherence

The Proposed Financial Intermediary Fund

Scope

Governance and institutional arrangements

Alternatives Considered

Risk and Mitigation Measures

Conclusion, Next Steps, and Recommendations

Public Disclosure Authorized Document of The World Bank ESTABLISHMENT OF A FINANCIAL INTERMEDIARY FUND FOR GAZA RECONSTRUCTION AND DEVELOPMENT Pub lic Disc losure Authorized November 20, 2025 Official Use Only ABBREVIATIONSAND ACRONYMS GRAD Gaza Reconstruction and Development FCV Fragility, Conflict and Violence FIF Financial Intermediary Fund IFC International Finance Corporation IRDNA Interim Rapid Damage and Needs Assessment MDTF Multi-Donor Trust Fund MIGA Multilateral Investment Guarantee Agency PFRD Palestinian Fund for Reconstruction and Development PID Palestinian Partnership for Infrastructure Development TFGWB Trust Fund for Gaza and the West Bank UNSCR United Nations Security Council Resolution WBG World Bank Group 2 Official Use Only Table of Contents I. Introduction ........................................................................................................................................ 4 II. Context and World Bank Group’s Experience ................................................................................ 5 A. Context ............................................................................................................................................ 5 B. Rationale for the Gaza Reconstruction and Development Fund ............................................... 7 C. Objectives, Complementarity, and Coherence ............................................................................ 7 III. The Proposed Financial Intermediary Fund ............................................................................... 8 A. Scope ............................................................................................................................................... 8 B. Governance and Institutional Arrangements .............................................................................. 8 IV. Alternatives Considered .............................................................................................................. 11 V. Risk and Mitigation Measures ........................................................................................................ 11 VI. Conclusion, Next Steps, And Recommendations....................................................................... 14 3 Official Use Only ESTABLISHMENT OF A FINANCIAL INTERMEDIARY FUND FOR GAZA RECONSTRUCTION AND DEVELOPMENT I. Introduction 1. Gaza stands at a pivotal juncture, presenting a rare opportunity to fundamentally reshape its economic and social landscape. The cost of inaction is high: continued humanitarian crisis, erosion of human capital, and deepening poverty. Mass destruction across the Gaza Strip, affecting the entirety of the population, and the collapse of economic activity represents a challenge that requires an approach that goes well beyond traditional post-conflict reconstruction. There is an urgent need for immediate and innovative thinking, coordinated interventions and mobilizing the private sector at scale. With emerging political momentum, the ceasefire, and the prospect of the second phase of the Gaza Peace Plan1, the international community is positioned to deliver transformative recovery and reconstruction. This moment enables the restoration of essential services, but the ambition should go beyond this, and towards initiatives to build a dynamic, sustainable, and prosperous economy. Realizing this vision will require substantial resources and a trusted, efficient platform to channel financing. The window for action is narrow; decisive engagement now can unlock pathways to long-term resilience and growth. 2. On November 17, 2025, the United Nations Security Council adopted a resolution (the“UNSCR”) which, in part, provided a framework for financing of reconstruction and development activities in Gaza and called on the World Bank to provide financing for these purposes, including through the establishment of a dedicated trust f

FAQs

What is the purpose of the GRAD Financial Intermediary Fund?

The GRAD fund is intended to receive donor contributions and finance recovery, reconstruction, and development activities in Gaza.

What role will the World Bank play in the fund’s operation?

The World Bank Group will serve as limited Trustee, transferring fund resources to an authorized governing body while ensuring fiduciary standards acceptable to the World Bank are maintained.

How does the UN Security Council resolution relate to the proposed funding approach?

A UN Security Council resolution adopted on November 17, 2025 provides a framework for financing reconstruction and development in Gaza and calls for donor-governed arrangements, including establishment of a dedicated trust fund.

Jul 19, 2026

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