Qatar said on Sunday it would grant $360 million to the Gaza Strip to be disbursed throughout 2021, state news agency QNA reported.
"This grant ... will be used to pay employee salaries, provide financial aid to families in need and operate power stations," QNA reported.
Qatar har previously transfered millions of dollars in aid to Gaza in a bid to ease tensions between Hamas and Israel.
But in August last year, Israel halted the Qatari aid to Gaza in response to Palestinians launching incendiary balloons across the border.
Since then, Israel and Hamas has engaged in sporadic fights, usually over rockets launched from Gaza.
Qatar in the meantime ended its rift with Arab gulf states earlier this month, with Saudi Arabia, UAE, Egypt and Bahrain ending the blockade on Doha.