By Sky News US Team
The United States has pledged $212m (£132m) in assistance to Gaza, which was left badly damaged by this summer's conflict between Hamas and Israel.
Secretary of State John Kerry also called for Israeli-Palestinian peace talks to resume as Egypt urged a wider deal based on a 2002 Arab initiative.
Mr Kerry said the new money, which nearly doubles American aid to the Palestinians this year, would go towards security, economic development, food and medicine, shelter and water and sanitation projects.
He said Gazans "need our help desperately - not tomorrow, not next week, but they need it now".
The pledge was made at a conference in Cairo, attended by officials from more than 50 countries and at least 20 organisations, including UN chief Ban Ki-moon and European Union negotiator Catherine Ashton.
The British ambassador to Egypt, John Casson, said the UK would provide $32m for reconstruction while Germany announced $63m.
Qatar stepped in with a pledge of $1bn.
Palestinian President Mahmoud Abbas has promised a transparent and responsible use of the funds, after saying $4bn was needed to reconstruct the coastal strip over three years.
He said this summer's conflict had caused "tragedies that are difficult to be described by words ... Entire neighbourhoods have been reduced to rubble and 90 families are no longer listed in the civil register".
Donors plan to funnel the aid through Mr Abbas' Palestinian Authority, and bypass militant group Hamas.
Mr Abbas and Hamas, which has ruled Gaza since 2007, recently formed a reconciliation government which held its first cabinet meeting in Gaza last week.
But a blockade of Gaza enforced by both Egypt and Israel remains in force.
Egypt, the most populous Arab country, brokered the current ceasefire between Israel and the Palestinians in August.
But it is now urging Israel to agree to an Arab peace initiative was floated by Saudi Arabia in 2002 which offers full recognition of Israel, but only if it gives up all land seized in the 1967 Middle East war and agrees to a "just solution" for Palestinian refugees.
Mr Abbas said the 2002 Arab plan could be the framework for a new comprehensive approach to the Palestinian-Israeli conflict.
Israeli governments have rejected the Arab initiative but Prime Minister Benjamin Netanyahu recently suggested a greater role for Israel's Arab neighbours in the pursuit of peace.
Meanwhile, a former international development minister has told Sky News that Britain has an historic and moral duty to recognise Palestine as a state.
Sir Alan Duncan said shame had been brought on the UK by its decision to stand back from taking a decision on the issue given its historic responsibility in the Middle East.
MPs will be asked to support moves urging the Government to recognise Palestine as a state alongside Israel during a Commons debate on Monday.
Around 2,100 people died, mostly Palestinian civilians, during the 50-day war between Israel and Hamas in July and August.
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