Smotrich says Israel has already completed the demolition stage in Gaza and insists “now we need to build,” claiming talks with Washington are underway, a plan sits on Trump’s desk, and Israel deserves compensation for its sunks costs and sacrifices. Meanwhile, Gaza Riviera plan are underway, as Gazans evacuate.
Finance Minister Bezalel Smotrich on Wednesday described the Gaza Strip as a potential real estate “bonanza,” telling a Tel Aviv real estate conference that Israel is already in talks with the United States about dividing up the coastal enclave after the war. He stressed that Israel should be compensated for the costs of war and reconstruction.
“We have paid a lot of money for this war. We have to see how we are dividing up the land in percentages,” Smotrich said, according to Israeli media reports. “The demolition, the first stage in the city’s renewal, we have already done. Now we need to build.”
The minister claimed a “business plan, put together by the most professional people here, is on President Trump’s desk.” He argued that the project “pays for itself,” suggesting that Gaza’s redevelopment would offset Israel’s war expenses and provide new long-term economic opportunities.
Trump’s “Gaza Riviera” Vision
Smotrich’s rhetoric builds directly on proposals advanced by former U.S. President Donald Trump earlier this year. In February, Trump suggested the United States could assume temporary control of Gaza, relocate a large share of its residents with financial packages, and transform the Strip into the “Riviera of the Middle East.”
At the time, Trump described his vision as a bold alternative to endless conflict, boasting that “with American investment and Israeli know-how, Gaza could be the most beautiful beach real estate in the world.” The plan, widely criticized by Palestinians, Arab governments, and officials from both U.S. parties, was dismissed as unrealistic. Yet insiders confirm that Trump’s advisers produced a glossy, full-color report to present the idea, complete with cover art depicting luxury towers along the Mediterranean shore and promotional text promising “a new Riviera for peace.”
The Washington Post reported last month that the proposal was “not quite dead.” According to the paper, Trump’s team continued weighing a scenario under which the U.S. would administer Gaza for a decade, while offering cash incentives to as many as a quarter of the enclave’s population to relocate permanently. The glossy report, said to have circulated among Trump’s close advisers, included financial estimates for compensation packages, beachfront development schemes, and the outline of a public-private partnership to attract global investors.
Israeli Settlers’ Return to Gaza?
Smotrich has repeatedly stated that he sees Gaza’s future as inseparable from Israel’s. In July, he addressed a Knesset conference titled “The Gaza Riviera – from vision to reality,” where participants displayed detailed plans for reestablishing Jewish settlements in the Strip. There, he declared Gaza would become “an inseparable part of the State of Israel.”
He has also pushed for renewed settlement in Judea and Samaria (West Bank), openly calling for the reestablishment of Ganim and Kadim—two communities dismantled in the 2005 disengagement. “We cannot allow mistakes of the past to dictate our future,” Smotrich told his Religious Zionism party newsletter Ofek last month.
In May, he was even more blunt, saying Gaza’s population would be confined to “a narrow swath of land, with the remainder of the enclave totally destroyed.”
A Clash With Netanyahu
Smotrich’s latest comments came just days after Prime Minister Benjamin Netanyahu warned that Israel faced increasing isolation and might need to adapt to “autarkic characteristics” like a “super-Sparta.” Netanyahu argued that Israel must prepare for an era in which it cannot rely on foreign supply chains and must stand alone.
“I do not agree with the prime minister’s words, and I really did not like the comparison to Sparta,” Smotrich said.
Netanyahu’s warning rattled Israeli markets, contributing to a dip in the Tel Aviv Stock Exchange, and drew fire from opposition leaders who accused him of undermining business confidence. On Tuesday, Netanyahu clarified that his comments referred specifically to defense industries and emphasized that he retained “full confidence” in Israel’s broader economy.
Washington Keeps Its Distance
For now, the White House and U.S. State Department have not commented on Smotrich’s claim that formal talks are underway. Administration officials have consistently said that Gaza’s postwar governance must be Palestinian-led, not Israeli or American.
Nevertheless, Smotrich’s remarks—tied to Trump’s glossy “Riviera” blueprint—highlight an emerging divide. On one side, the international community continues to demand Palestinian sovereignty in Gaza. On the other, senior Israeli ministers and Trump-aligned Republicans are sketching out plans that would redraw the map entirely, combining security objectives with real estate ambitions and demands for compensation.
As Smotrich put it, “The demolition is done. Now we need to build.”
I have noticed this offensive reference to President Trump as ‘Former President’ more than once. Would you please correct this continuous error.
“Smotrich’s rhetoric builds directly on proposals advanced by former U.S. President Donald Trump earlier this year.”