He said his cabinet would “work to develop a vision for reintegrating the institutions, including assuming responsibility for Gaza.”
Abbas, 88, has been urged by the United States to shake up his creaky authority so that he can reunite the occupied West Bank and devastated Gaza Strip under a single set of rules after the war.
The Palestinian Authority has had little influence over the Gaza Strip since Hamas took over from Abbas' Fatah party in 2007.
Secretary of State Antony Blinken urged Abbas to make “administrative reforms” when the two men met in January.
Abbas's Ramallah-based government has been hobbled by Israel's decades-long occupation of the West Bank and by his own unpopularity.
Two Palestinians killed, journalists injured in Israeli attack on Gaza tent camp
Two Palestinians killed, journalists injured in Israeli attack on Gaza tent camp
Mustafa, an economist and longtime adviser to Prime Minister Abbas, said the “reconstruction” of the Palestinian territory is the main focus as Gaza is left in ruins after six months of Israeli shelling in retaliation for the Oct. 7 attack. He said it was his goal.
His new cabinet is made up of 23 ministers, including four women and six ministers from Gaza, including former Gaza City mayor Majid, who has been given the health portfolio. Abu Ramadan is also included.
Among the new female faces is Varsen Agabekian, a Palestinian-Armenian scholar who will work alongside Mustafa in the Ministry of Foreign Affairs.
The prime minister, who previously worked at the World Bank, said the thorny issue of Israeli-annexed East Jerusalem was also a top priority, along with “fighting corruption.”
But many doubt whether the Palestinian Authority, beset by divisions, corruption scandals and the authoritarian tendencies of its aging leader, can be a reliable player in any future deal.
Ali Jarbawi, a former Pennsylvania state minister and political scientist, said it faces major challenges on all fronts.
“We need urgent financial support because we are bankrupt, in debt, and unable to pay salaries,'' he said.
And it will need to be accepted by both Palestinian factions: Fatah, which controls the West Bank, and Hamas in Gaza.
“Thirdly, we need a political perspective from the international community and a commitment to a two-state solution,” Jarbawi said.
“That cannot happen unless the Israeli government, military and West Bank settlers ease the pressure on the Palestinians,” he added.
World Court orders Israel to respond to Gaza famine
World Court orders Israel to respond to Gaza famine
Bassem Naim, a senior Hamas official, criticized Abbas' policies.
He told Agence France-Presse that “his takeover of Palestinian unity decision-making” was dangerous “for our cause at a very important stage in the history of our people.”
He said Hamas had “proposed a sit-in for national dialogue and restructuring of the political system, but Abbas has blocked all such attempts.”
Hamas, Islamic Jihad and the Marxist Popular Front for the Liberation of Palestine issued a joint statement earlier this month declaring that Mustafa's appointment would only deepen the divisions in Palestine.
People on the streets of Ramallah, the authorities' stronghold, were similarly skeptical.
“Changing the government will not solve anything, because change for us will only come from outside,” said Suleiman Nassar, 56.
“We know very well that no minister or Palestinian government can enter the country without the approval of the United States or Israel,” he said.