A Gaza-based contracting company has been hired to construct a United Arab Emirates-funded housing compound for tens of thousands of displaced Palestinians in a section of the blockaded enclave under Israeli military control, according to two Israeli officials and two Palestinian businessmen who spoke to Reuters.

The plan for a Palestinian contracting firm staffed by Gaza workers to build the compound ⁠has not been previously reported.

It appears to signal an aim ⁠to begin reconstruction without waiting for Israel to withdraw from Gaza, a step that is meant to accompany the disarming of Hamas fighters in the next phase of a cease-fire under U.S. President Donald Trump's plan.

Employing Palestinians in construction could be a way to reduce ​local hostility to the project, but it remains to be seen whether large numbers of Palestinians would ​agree ⁠to live or work in an Israeli-held area of Gaza.

The United Arab Emirates has yet to formally announce the housing project, dubbed by some diplomats as "Emirates City." According to a planning map seen by Reuters, the compound would be built near Rafah on Gaza's southern edge, an area depopulated and demolished by Israeli forces during its genocidal war.