U.S. Special Envoy Steve Witkoff on Gaza Reconstruction, Israeli Security, and the Future of Middle East Diplomacy

AJC Chief Policy and Political Affairs Officer Jason Isaacson sits down with U.S. Special Envoy to the Middle East, Steve Witkoff, for a live discussion in Washington, D.C., to introduce AJC's Center for a New Middle East. They cover plans for rebuilding Gaza, the future of Israeli-Arab relations, and the evolving geopolitical landscape, including the impact of the Abraham Accords and shifting regional alliances. Tune in for insights on diplomacy, security, and what's next for the Middle East. The views and opinions expressed by guests do not necessarily reflect the views or position of AJC. Resources: AJC Center for a New Middle East Initiatives and Policy Recommendations Listen – AJC Podcasts: The Forgotten Exodus : with Hen Mazzig , Einat Admony , and more . People of the Pod : Why Germany's Antisemitic Far-Right Party is Thriving Instead of Disappearing Spat On and Silenced: 2 Jewish Students on Fighting Campus Hate University of Michigan Regent Jordan Acker: When Antisemitism Hits Home Follow People of the Pod on your favorite podcast app, and learn more at AJC.org/PeopleofthePod You can reach us at: peopleofthepod@ajc.org If you've appreciated this episode, please be sure to tell your friends, and rate and review us on Apple Podcasts or Spotify. __ Transcript of Conversation with Jason Isaacson and Steve Witkoff: Manya Brachear Pashman: This week, AJC's Chief Policy and Political Affairs Officer, Jason Isaacson, sat down for a live conversation with Steve Witkoff, the US Special Envoy to the Middle East. They discussed plans to rebuild Gaza, political upheaval in Syria and Lebanon and expansion of the Abraham Accords. For this week's episode, we bring you that live conversation to you. Jason Isaacson: Good evening, everyone. Thank you for being here, and thank you Special Envoy Witkoff for participating in this evening's program, introducing AJC Center for New Middle East, and extension and refocusing of the work that we've been doing for decades to advance Arab Israeli understanding, cooperation and peace. Your presence here means a great deal to us. As you've heard from my colleagues, AJC looks forward to working with you and your team in any way that we can to help ensure the success of a secure Israel, fully integrated in the Middle East. Now let me begin by thanking you again, renewing our thanks and thanking President Trump for your relentless efforts, which began even before the President took office, to assure the liberation of the hostages still held by Hamas and Gaza now for 508 days, we know how dedicated you are and the President is, to gaining the release of Edan Alexander, the last living American hostage, and the remains of the four other Americans, Itai Chen, Gadi and Judy Weinstein-Haggai, and Omer Neutra, and all of the hostages living and dead, still held captive by the terrorists. So I want to point out that leaders of the Hostage Families Forum are with us here this evening. As is Emmet Tsurkov, whose sister Elizabeth Tsurkov was kidnapped by terrorists in Iraq two years ago. We are all counting on your and your colleagues' continued efforts to free them all. Thank you again, Steve. Now my first question to you, how does a successful real estate developer make the transition to Middle East diplomacy, as you certainly have. Clearly, there are profound territorial issues at play here, but there are also powerful and tangible factors, perhaps less easily negotiated, factors of historical narrative, of religion, of nationalism. How do you cut through all that? How do you achieve success given the very different career that you've pursued up to this point? Steve Witkoff: Well, first of all, Jason, thank you for having me, and welcome everybody and to the hostage families, I just want to welcome you here. Some of the people I probably have talked to already, and just know that my heart is always with you. You know, President, I'm a very close friend of President Trump's, and I think he felt that, hopefully, that I could do a good job here. And so I think the job had a lot to do with miscommunication and correcting that. It had a lot to do with getting over to the region and understand what was happening, and maybe most importantly, it had a lot to do with his election and peace through strength and the perception that he was not he was going to take a different path, that the old policy prescriptions that that had not worked in the Middle East were not going to be tolerated by him anymore. And I think that's in large part what allowed us to get a positive result. Adding to that, of course, was all of the good work that Prime Minister Netanyahu in his administration had achieved with Nasrallah Hezbollah in Lebanon, he had basically gutted Hamas. So many good things that happened. And you know, on top of that, the raids in Iran, and it created this perception that a lot of the a lot of what emanated out of October 7 was never going to be tolerated again. And that began the, you know, that began the pathway to achieving the result we achieved in the first phase. But that's just half of the problem. So we've got a lot more to go. Jason Isaacson: I've got some questions about that, as well as you can imagine. Help us understand the President's priorities and therefore your focus in this very complicated region. There's the continued trauma of October 7, 2023 dozens of Israeli and other hostages still held by Hamas terrorists in Gaza, and the deep wounds inflicted on Israeli society in that attack. There's the need to rebuild Gaza and to assure it is no longer governed by Hamas. There's the prospect of advancing normalization between Israel and Arab states building on the Abraham Accords of the first Trump administration. There are also political upheavals and some hopeful signs, although the jury is still out in Lebanon and in Syria, and there's the ongoing threat to peace and stability posed by the Iranian regime. How do you prioritize? What are your expectations for success on these many tracks. It's an awful lot to deal with. Steve Witkoff: That was, I think I counted like 14 questions. Jason Isaacson: This is my specialty, by the way. Steve Witkoff: I can see. I have to, now you're testing my memory on all of this. Jason Isaacson: Priorities. Steve Witkoff: Yeah, I would say, How does the President think about it? Well, first and foremost, he wants something different for the region, yeah, and different in the sense that the old way of thinking we've they've rebuilt Gaza three or four times already. Like that's just an unacceptable use of resources. We need to do it in a much more in a much better way, a. B, we need to get rid of this crazy, ideological, psychopathic way of thinking that Hamas thinks. What they did, it can never be tolerated. I saw a film that many in this in this room did not see, made by Southern Command when I was in Gaza, and it's horrific. I mean, it is a horrific film. What happened in this film and what they did to people. So this is not, this is not the act of people who are going to war. This is the act of barbarians, and it can never be tolerated. Normalization is critical for the region. Saudi Arabia embraces it because they can't finance in their own markets today. And why? Because there's so much war risk. I actually saw Jamie Diamond today, and I discussed it with him, and I said to him, you know, think about an area like Saudi Arabia. They have tons of money, but they can't leverage their money. And they can't because the underwriting risk on war, it can't be underwritten. So you're not going to see typical senior financing. Go into those marketplaces they can finance if they do a deal in New York and they can't finance in their own country. Makes no sense. And that's going to lead to a lot of stability. In terms of the Iranian crescent, it's basically been decimated. Look at what's happened with Syria. No one ever thought that that was going to happen. We've got an epic election in Lebanon. And so tons of things happening. Lebanon, by the way, could actually normalize and come into the Abraham Peace Accords, as could even potentially Syria. So so many profound changes are happening there, and yet it's been a flash point of conflict, and I think that there's a possibility that we end it. Now, do we have to make sure that Egypt is stabilized? Yes, they've got some issues, economic and financial issues, and also on their streets. Same thing with Saudi Arabia, and we have to be cognizant about that. But all in all, I think there are some really good, good things that are happening. Jason Isaacson: Yeah, and I hope with your intervention and the president's power, more good things will happen in the coming months. Steve Witkoff: We're hopeful. Jason Isaacson: So you've recently returned from your latest trip to the region with meetings at the highest levels in Israel, in Saudi Arabia, in the United Arab Emirates, next Tuesday in Cairo, will be a meeting of the Arab League to discuss the future of Gaza. What is your sense of, drills down on your last answer, what is your sense of the region's readiness to advance to the next phase of negotiations, to free the Israeli hostages, to shift to a new Israeli force posture in and around Gaza, and put a governing structure in place that excludes terrorists. Can we assure that Hamas no longer rules, no longer poses a threat, that its missiles, tunnels and other infrastructure in Gaza are destroyed? Steve Witkoff: Well, you know, central to the May 27 protocol that was signed with the Biden administration and the Israelis. Central to that is that Hamas cannot have any part of a governor governing structure in Gaza. And that's from that's a red line for the Israelis, but it's a red line for us, too. You see the film. And we have to thread that needle in phase two of the negotiations. Jason Isaacson: How do we get there? Steve Witkoff: We're not entirely sure yet, but we are working. You know, we're making a lot of progress. There is, Israel is sending a team right now as we speak, it's either going to be to Doha or to Cairo, where negotiations will begin again with the Egyptians and with the Qataris, and I may if that negotiation goes positively enough. This is the initial phase of the negotiation where we've set, we've set some boundaries, some contours about what we want to talk about and what the outcomes we expect to happen. This is from the United States at the direction of President Trump. If it goes well, maybe I would be able to go on Sunday to execute and finish an arrangement. That's what we're hoping for. Jason Isaacson: Put phase two on track. Steve Witkoff: Put phase two on track and have some additional hostage release, and we think that that's a real possibility. We had a lot of conversation this morning about that, and with all of the parties I'm talking about, and people are responsive. Doesn't mean it's going to happen. That's a very chaotic place the Middle East. Jason Isaacson: But you've got cooperation from the Quint, Saudi Arabia, the UAE, Jordan, Egypt, Qatar. Steve Witkoff: Yes. All of those countries in that region, they want to see, they want to see stability. There's new young leadership there. Everybody understands that it's untenable to be at war all the time. It just doesn't work, and it's setting everybody back. Look at Israel, by the way, they're drafting, they're conscripting people at 50 years old to go to go to the fight. That's, uh… Jason Isaacson: And reservists are being called back to duty again and again. Steve Witkoff: Correct. People can't work, by the way, economies are suffering throughout there. But on the other hand, Hamas can't be tolerated either, and yet, we need to get the hostages back to their families. Pardon me? Jason Isaacson: Israel is still resilient. Steve Witkoff: Of course it is. Of course it is. But we, you know, look, I don't want to talk about all these things and not acknowledge that the most that the primary objective has got to be to bring those hostages home. It has to be. Jason Isaacson: I mentioned the Quint before: Saudi Arabia, the UAE, Jordan, Egypt, Qatar. Egypt and Jordan, longtime peace partners with Israel, were proposed by the president as the possible place in which Palestinians evacuated from Gaza could be housed temporarily, or perhaps more than temporarily. What is your sense of the possibility of the dislocation of Palestinians from Gaza? Is that essential to the idea of rebuilding Gaza, or not essential? Steve Witkoff: Well, first of all, let me acknowledge King Abdullah, and also the Egyptians, General Hassan, who runs their intelligence unit. President Sisi, their ambassador. They're dug in. They're focused on solutions. It's a complicated situation right now, but they've done a great job, and they've been available, and whenever I call them, they're responsive. The Jordanians have had a tough trip here, but, you know, they've managed through it. But let's just talk sort of about what the President talks about. Why is he talking about Gaza in the way he's talking about it? Because all the for the last four decades, the other ways of thinking have not worked. We sort of always get back to this place. First of all, it's a giant slum. It really is, by the way, and it's a slum that's been decimated. On top of that, I was the first American official to go there in 22 years. I was literally there in the tunnels, on the battlefield. It is completely destroyed. There's 30,000 shells that are laying all over that battlefield, in large part because the Biden administration held up munitions shipments to the Israelis, and they were firing 1973 vintage ammunition that didn't explode. Who would let their children wander around these places? In New York, there would be yellow tape around it. Nobody would be allowed to come in the they were digging tunnels. So everything underneath subterranean is swiss cheese, and then it got hit by 2000 pound bunker bombs. So you could have dust down there. It's so devastated. I just think that President Trump, is much more focused on, how do we make a better life for people? How do we change the educational frameworks? Right now, people are growing up there, in textbooks, in the first grade, they're seeing AK47's, and how you fire them. That's, that's, this is just insanity. What's going on out there. So we have to directionally change how people are thinking there, how they're going to live together. People talk about two state we at the Trump administration, talk about, how do you get to a better life if you have a home in Gaza in the middle of a slum that hasn't been fixed up correctly, is that as good as aspirationally having a great job and being able to know that you can send your kids to college and they can become lawyers and doctors and so forth? That to me, is what we want to achieve. And when, when we began talking about Gaza, we were not talking about a giant eviction plan. What we were talking about was the fact, unlike the Biden administration, and this is not a knock on them, it's that they didn't do their work correctly, the Biden administration, that May 27 protocol is based on a five year redevelopment plan. You can't demolish everything there and clean it up in five years, let alone x-ray it on a subterranean level and figure out what foundations exist, or what, what conditions exist to hold foundations, and then what we should build. It's easily a 15 year plan, and it might be 20 or 25 years. And the Wall Street Journal, one of the most mainstream publications, two days ago, finally came out with a major article talking about that and basically validating what we've been talking about. Once you understand it from that perspective, you understand it's not about an eviction plan. It's about creating an environment there for whoever's going to live there that's better than it's ever been in the last 40 years. Jason Isaacson: Steve, thank you. Before October 7, 2023 the betting in many foreign policy circles, as you know, was that the Kingdom of Saudi Arabia and Israel were closing in on a deal to normalize relations, coupled with an enhanced security agreement between the US and Saudi governments and Saudi access to the full nuclear fuel cycle under US safeguards. Where would you say that formula stands today? Is that still the framework that you're expecting will describe the relationship between the United States and Saudi Arabia and between Saudi Arabia and Israel? Steve Witkoff: Well, that's why I keep on going back to the May 27 protocol, because it's chock full of misinformation. And so the Saudis were operating, as were the Israelis, as if you could redevelop and reconstruct Gaza in five years. You can't. You can finish demolition, you can finish refuse removal, you can do all of that in five years. But for that, there's nothing else is going to get accomplished. So when the Saudis talked normalization with the Israelis and defense treaty, they were thinking about it on a five year time frame. Once you begin to think about it as a 15 or a 20 year deal, it almost begs the question, are Gazans going to wait? Do they even want to wait? I mean, if you're a mother and a father and you've got three kids, do you want to wait 20 years to maybe have a nice, safe home there? And this has nothing to do with relocation. Maybe we should be talking about relocation, or, excuse me, the ability to come back and, you know, later on. But right now, right here, right now, Gaza is a long term redevelopment plan, and I think once the Saudis begin to incorporate that into their thinking, and the Egyptians and UAE and everybody who has a vested interest in Gaza, I think you're going to see development plans that more mirror the way the President is thinking than what the May 27 protocol contemplated. Jason Isaacson: Are you suggesting that the possibility of normalization between Israel and Saudi Arabia will come after there is a fully formed Gaza redevelopment plan? Steve Witkoff: I think so. Because I believe that. I believe it's just sequentially logical, because that's when you begin to think about how Gazans are going to think about it. Right now, we're talking about it in the abstract. And there are many countries, by the way, out there, that from a humanitarian standpoint, we've talked to many of them, are actually extending themselves and saying, Hey, look, we'd, we'd love to be a part of some sort of permanent solution for the Gazan people. No one wants to see the Gazan people in some sort of diaspora, they're sort of disengaged, and that doesn't work. That only is going to fester and lead to more radicalism in the region. So we've got to get a solution for it, but we need to levelset the facts first. And the facts have not been levelset. They've been thinking about this from a perspective of facts that are inaccurate. Now we've level set those facts. We're going to conduct a summit pretty soon with probably the biggest developers in the Mideast region, many of the Arab developers, lots of master planners. I think when people see some of the ideas that come from this, they're going to be amazed. Jason Isaacson: Steve, thank you. Final question, from AJC's many contacts and visits over many years across the Arab world, including regular exchanges over three decades in Gulf Cooperation Council countries, we've come to believe in the inevitability of Israel's full integration in the region, that the more the region's leaders and elites focus on the potential advantages to their societies, including their security of normal relations with Israel, the more likely it is that we'll achieve that goal. Is that the sense that you have as well, from where you sit? Steve Witkoff: I do. I think, look, I think that the people of Israel want to live in peace with with the people of the Middle East. And it could be incredible. Jason Isaacson: And vice versa. Steve Witkoff: And vice versa. I had a discussion with His Royal Highness, His MBs, his brother yesterday, the defense minister, an exceptional man, by the way, and we talked about how Saudi could become one of the best investable markets out there, when it can be financed. Think about this. The United States today has the greatest capital market system that the world knows. And when you have a great capital market system, when. You can borrow, when you can lease a car, when you can buy a home and mortgage it all those different things. It drives an economy. It propels it. Right now in the Middle East, it's very difficult to finance. The banks don't want to operate it. Why? Because tomorrow a Hootie missile could come in if you're building a data center, and puff it's gone. We don't have to. Banks don't have to underwrite that risk in New York City or Washington, DC or American cities. So I think as you get more stabilization there, I think the real estate values are going to go through the moon. And we talk about this, Israel is a bedrock of great technological innovation. I think you know, all of the Arab countries, UAE, Saudi, Qatar, they're into blockchain robotics. They're into hyperscale data centers. These are the things that interest Israel, and yet they're driving so much of the tech surge out there. Imagine all of them working together. It could be an incredible region, so we're hopeful for that prospect. That's that's the way the President thinks about it. We've we talk at length about this, and he gives us the direction, and we follow it, and that's his direction. Jason Isaacson: I thought I heard applause about to begin, but I will, I will ask you to hold for a second, because I just want to thank you, Steve whitco, for sharing your vision and the President's vision for how to move forward to build a more stable and prosperous and peaceful Middle East and and you've laid it out for us, and we very much appreciate your Thank you. Steve Witkoff: Thank you. Manya Brachear Pashman: If you missed last week's episode, be sure to tune in for my conversation with AJC Berlin director Remko Leemhuis about the victory of a centrist right government in Germany's recent election and its plans to build a coalition excluding the far-right, antisemitic political party, Alternative for Germany. Remko and I discussed why that party's unprecedented post war election returns are a cause for concern.