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.

Saudi Arabia has rejected any attempt to displace Palestinians from their land, reiterating that Palestinian statehood is non-negotiable.

Saudi Arabia said it would not establish ties with Israel without the creation of a Palestinian state, contradicting President Donald Trump's claim that Riyadh was not demanding a Palestinian homeland when he said the U.