Trump’s Gaza Board of Peace issues first building contract – for a military base

What Happened

The US-led Board of Peace, chaired by President Trump and including Jared Kushner and Steve Witkoff, has issued its first construction contract for Gaza—not for civilian reconstruction, but for a military outpost. The contract, awarded to Louisiana-based Arkel International (which has prior US government work in Iraq), is to build a 150-person base for Moroccan troops as part of an international stabilisation force (ISF). The facility is just 100 by 120 metres, located about a mile from the Israeli border within the 60% of Gaza directly controlled by the Israeli military, and would include a quick extraction route. The contract is not yet finalised, according to a Board of Peace official, who said the board and a group of Palestinian technocrats are in 'final stages' of several contract awards. The move follows Trump’s claim that Hamas agreed to disarm, though Israel opposed the plan and increased airstrikes. Earlier, the board’s reconstruction ambition shrank from a sweeping 'New Gaza' blueprint to a small pilot project in the south.

Key Actors

Why It Matters

The first contract from the Trump-chaired reconstruction body prioritises foreign troop housing over civilian infrastructure, signaling a security-first approach to Gaza. It materialises the controversial vision of an external stabilisation force, sited within Israeli-controlled territory and built by a US contractor with war-zone experience. This marks a stark departure from earlier grand plans for a 'New Gaza' waterfront development, underscoring the political and practical complexities of reconstruction as 80% of Gaza’s buildings lie in ruins and most of the 2 million population remains in camps ten months into a ceasefire.

Watch For

Finalisation of the contract and announcement of a firm deployment timeline for Moroccan troops; completion of the ISF’s legal framework under the UN resolution; reactions from Israel (which has opposed the plan and escalated airstrikes), Hamas, and Palestinian factions; potential letting of further contracts for the larger 5,000-person base; and whether Hamas follows through on disarmament as claimed by Trump.