So how much will it cost? Attempts to clarify the expected financial burden on Israel by asserting sovereignty over the Gaza Strip have yielded unclear and inconsistent answers, even from officials involved in the process.
“The chief of staff isn’t demanding clear orders for nothing,” Ram Aminach told Israel Hayom. Aminach, who once served as the IDF’s de facto financial advisor and is regarded as one of Israel’s foremost experts on military economics, adds: “How you define the military mission is crucial. Each mission dramatically affects budgeting and costs.”
Senior officials involved in decision making echoed this sentiment. “This is currently under discussion in the Cabinet. It’s a very broad issue and ultimately up to the political echelon. It’s not even clear whether they fully understand what all this entails,” one senior official tells Israel Hayom.
Destruction in the Gaza Strip. Photo: AFP AFP
Crunching the numbers
Initial estimates suggest the military’s rush to secure all areas of Gaza where it currently lacks control, driven largely by fears that hostages may be held there, would cost between 10 and 20 billion shekels ($2.9 to $5.8 billion).
But that’s just the beginning. The real question is what happens once the tanks stop. This includes holding the territory, clearing it, and addressing the needs of the civilian Gazan population.
“We’re talking about incomprehensible costs,” said Aminach. “Look at the international pressure Israel faces today and multiply that by five, at the least. To ease that pressure, we’ll need to take care of the population in Gaza. No international player is going to help pay for that, not while Israel is seen the way it is right now.”
Destruction in the Gaza Strip. Photo: Reuters
The working assumption is that full control over the Gaza Strip, even without full reconstruction but with Israel taking responsibility for the population, would require a one time cost of 100 billion shekels ($29 billion). This would cover waste removal, basic housing construction, infrastructure for sewage, water, and electricity, and the establishment of healthcare centers.
Beyond the initial spending, the annual cost of maintaining full control over Gaza is estimated at between 60 and 130 billion shekels ($17.4 to $37.6 billion). This includes assuming partial responsibility for the education system, enough to satisfy international scrutiny, full-scale food supply, and stationing IDF divisions with periodic rotation of reservists.
In essence, the largest financial burden would be keeping the IDF in the Strip, to maintain order and ensure troop safety.
The human cost
Aminach also highlighted a major factor often left out of economic calculations: the Defense Ministry’s Rehabilitation and Families Department. This agency handles payments to the families of fallen soldiers, medical rehabilitation for the wounded, and lifelong stipends for disabled veterans, a number that continues to grow.
IDF soldiers in Khan Younis. Photo: IDF Spokesperson’s Unit IDF Spokesperson’s Unit
The department currently represents a financial obligation of 120 billion shekels ($34 billion), a sum that will only increase if Israel enters Gaza in full force.
Finally, it’s important to note that these figures do not include one critical element: the mission definition. For Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben Gvir, “full sovereignty” means rebuilding Israeli settlements in Gaza. That would add the costs of residential construction, security, and ongoing maintenance for a civilian population, none of which is yet factored into current estimates.
