The Emirate State News Agency said that the United Arab Emirates intends to build a new Palestinian town on site of demolished settlements in the Gaza Strip, after the Israeli withdrawal.

According to the agency the new town will be named The Khalifa bin Zayed city after the UAE President Sheikh Khalifa.

The planned town would house 30.000 to 40.000 residents, and would cost at least $100 million.

Yet, the location of the new town in still unclear.

Israel will start in August the removal of 21 settlements in Gaza, which where constructed on Palestinian lands occupied since the 1967 Six-Day war.

The Israeli online daily Haaretz reported on Monday that Israel has agreed with the Palestinian Authority to demolish the settlers’ homes in the evacuated settlements.

It is worth mentioning that the UAE donated $55 million earlier this year to finance the construction of a neighbourhood for Palestinians whose homes were destroyed by the Israeli army since 2000.