Arab leaders adopted an Egyptian reconstruction plan for Gaza on Tuesday that would cost $53 billion and avoid displacing Palestinians from the enclave, in contrast to US President Donald Trump's "Middle East Riviera" vision, Khaleej Times reported.

Egyptian President Abdel Fattah El Sisi said the proposal, welcomed in subsequent statements by Hamas and criticised by Israel, had been accepted at the closing of a summit in Cairo. Sisi said at the summit that he was certain Trump would be able to achieve peace in the conflict that has devastated the Gaza Strip.

The major questions that need to be answered about Gaza's future are who will run the enclave and which countries will provide the billions of dollars needed for reconstruction.

Sisi said Egypt had worked in cooperation with Palestinians on creating an administrative committee of independent, professional Palestinian technocrats entrusted with the governance of Gaza.

The committee would be responsible for the oversight of humanitarian aid and managing the Strip's affairs for a temporary period in preparation for the return of the Palestinian Authority (PA), he said.

The other critical issue is the fate of Hamas, the PA's rival.

Commenting on the committee in a press conference following the Arab League summit, Egypt's Foreign Minister Badr Abdelatty said the individuals who will lead the committee managing the Gaza enclave for six months have been decided.

"The future of Gaza will be managed by a non-partisan committee temporarily, and in parallel the Palestinian Authority will be empowered so that it can operate on the ground and undertake security tasks and tasks related to early recovery and reconstruction," Abdelatty said.

In a statement, Hamas said it welcomed the plan as well as the formation of the Palestinian committee. Palestinian President Mahmoud Abbas, who heads the PA, said he welcomed the Egyptian idea and urged Trump to support such a plan that would not involve displacing Palestinian residents.

Abbas, in power since 2005, also said he was ready to hold presidential and parliamentary elections if circumstances allowed, adding his PA was the only legitimate governing and military force in the Palestinian territories.