President Trump's proposal to transfer all two million Palestinians out of the Gaza Strip and rebuild the enclave as the 'Riviera of the Middle East' has been swiftly rejected by Arab countries, including Saudi Arabia. The Saudis have made it clear that they will not normalize relations with Israel until a Palestinian state is established, a precondition that is 'nonnegotiable and not subject to compromises.' Trump's proposal has earned suspicion and anger in Arab countries, as it goes against their hopes for an independent state. The controversy over the Gaza proposal has complicated the prospects of a deal with Israel that was already difficult to achieve.