President Donald Trump's plan for the United States to take over Gaza, permanently displacing Palestinians who live there and creating the "Riviera of the Middle East," has upset Arab nations and Western allies and would overturn decades of American policy in the region.

DUBAI—Saudi Arabia on Wednesday dismissed a proposal by President Trump for the U.S. to take control of Gaza and for Palestinians to permanently leave the strip, an idea likely to be also rejected by other Arab nations.

President Donald Trump’s proposal to forcibly transfer hundreds of thousands of Palestinians out of the Gaza Strip and develop faces some major obstacle