US 'pushing Gulf to fund Sinai-based Gaza economic projects' for Trump's 'deal of the century'

The United States has reportedly been pushing Gulf states to invest in economic projects for Gaza to be built in Egypt's northern Sinai, Haaretz reported on Sunday.

Three sources told the Israeli newspaper that the proposed Gulf-funded projects are aimed at generating momentum before the unveiling of a US peace plan.

The idea will be raised during a regional tour this week by White House adviser Jared Kushner and US President Donald Trump's special envoy for the Middle East, according to the report.

The projects reportedly include a port, solar energy grid and water desalination plant to be set up in northern Sinai near the Egyptian city of al-Arish to serve Gaza.

"The sources said that overall the White House hoped that somewhere between $500 million and $1 billion would be raised," the report said.

The report comes after Palestinian Authority spokesman said US efforts to resolve the Israeli-Palestinian conflict are "doomed to fail".

Nabil Abu Rudeina said on Saturday that Kushner and Jason Greenblatt's tour will produce "no results".

According to Israeli media, they will speak this week with the leaders of Qatar, Saudi Arabia, Egypt, Jordan and Israel.

US President Donald Trump has vowed to broker the "deal of the century" to resolve the Israeli-Palestinian conflict.

The Palestinian Authority broke off official contact with the Trump administration after the US recognised Jerusalem as Israel's capital.

The current blueprint for the US peace plan foresees a demilitarised Palestinian state with full Israeli control of its borders and airspace.

Illegal Israeli settlements will remain in place in the occupied West Bank, while East Jerusalem has effectively been taken off the negotiating table following Trump's recognition of the city as Israel's capital and the subsequent relocation of the US embassy from Tel Aviv.

PA leader Mahmoud Abbas has shunned Trump's peace efforts as the "slap of the century".