BREAKING NEWS

Israel wants peaceful Gaza but unsure on funding reconstruction, says economy minister

Israel's economy minister said on Wednesday it seeks a peaceful Gaza but has not decided whether to help fund its reconstruction and would not allow the rebuilding of Hamas rule that he said could lead to another cross-border terrorist attack.

A ceasefire between Israel and Palestinian terrorist group Hamas took effect on Sunday and the focus has shifted in part to ways of bringing permanent peace after 15 months of war.

Economy Minister Nir Barkat told Reuters in an interview during the World Economic Forum's annual meeting in Davos, Switzerland that reconstruction of Gaza was not possible unless Hamas decided it wanted lasting peace with Israel.

"The key question is if...they want to build a Dubai or rebuild Gaza the way it was," Barkat said, referring to the United Arab Emirates city, a global hub of commerce, and to Gaza under Palestinian Islamist terrorist rule since 2007.

"Dubai recognised the state of Israel, they are focusing on mutual economies...we would like to see Dubai in our region, not Gaza," said Barkat, a former mayor of Jerusalem.