The United States mediates between Israel, Saudi Arabia and Egypt for a course of normalization, while the issue of completing the transfer of the islands of Tiran and the Red Sea fin to Saudi sovereignty is also on the table. But the normalization with Saudi Arabia, even if not officially announced but – already almost here. This is reflected in large deals recently signed, visits by Israeli businessmen with Israeli passports on special visas in Saudi Arabia, and advanced contacts for investments by Saudi businessmen and investment funds in Israel.
“For more than twenty years we have had an indirect connection with Saudi Arabia, but a boom like in recent months I do not remember,” a source familiar with the matter told Globes. These commercial ties were behind the scenes, mostly through companies registered in European or other countries, and the deals were signed in those countries. These are a variety of civilian and security areas alike.
Globes has learned that for months, Saudi Arabia has been allowing Israeli businessmen to enter it with their Israeli passports after receiving special entry visas. The main area is that of representatives and managers of Israeli technology companies invited by the Saudis, and the change of recent months is the abolition of the sweeping ban that was in place, and the ease with which the special visa is obtained.
Dozens of businessmen took advantage of this opportunity and visited Riyadh, the economic center of Saudi Arabia, and also other places like Niem – the city of the future being built not far from the shores of the Red Sea. Former Prime Minister Netanyahu also visited this city, and according to reports, he met with the regent between Salman in November 2020, a meeting in which the then US Secretary of State Mike Pompeo also attended.
These visits have spawned quite a few deals, including two worth millions of dollars in the field of desert agriculture. According to a source involved in the matter, these are projects that reflect the use of Israeli water technology, which is necessary for the desert climate in Saudi Arabia along with other Israeli agri-tech technologies – both of these technologies are closely monitored by the royal house, with the goal of expanding them as part of efforts to achieve security and independence. Nutritional.
These projects have significance for the entire Middle East, as they also illustrate to other countries in the region the Israeli ability to assist in some of the areas that are particularly important to countries suffering from food shortages.
Israeli businessmen and officials involved in the field were not surprised by the Saudi investment. “Apart from a direct diplomatic connection (and also direct bank transfers) – we have everything needed between the countries to maintain a business connection, and to sign transactions and transfer goods and knowledge.” Says an Israeli businessman in a conversation with Globes.
The unstoppable interest in start-ups
As part of the recent activity, Globes has learned that additional deals signed are in the field of agriculture and in civil technology areas such as Medtech (Medical Devices Industries). In addition, there is a growing interest in investing in areas that are not startups, but in proven Israeli products. According to the same sources, it is estimated that these transactions are close to signing and will precede the institutionalized investments that will be made through the wealth fund.
Dr. Nirit Ofir, Director General of the Israel Chamber of Commerce-GCC (Gulf Council of States), says that “the interesting thing is that this is the private sector on both sides that is pulling forward rapidly.” According to her, “Business people are not limited to diplomatic issues, and when the personal meeting and the interest meet – they progress.” She emphasizes that unlike in the UAE these transactions are between businessmen and the private commercial sector and not between countries.
Israel has joined forces with Saudi Arabia on the oil issue
Another confirmation of Israeli activity in Saudi Arabia also comes from Riyadh. A senior Saudi official involved in the issue tells Globes that the number of applications by Saudi businessmen for entry visas for Israelis is growing and that the interest and thirst for information on Israeli technologies is growing rapidly. According to him, meetings between businessmen on both sides are also taking place in Dubai and Abu Dhabi in the Emirates, as well as in Manama, the capital of Bahrain.
“The government here sees the possibilities inherent in this activity, and it fits into the plans and major reforms promoted by the regent.”
In the field of security and intelligence, ties between the two countries are important, mainly due to the common enemy – Iran. Quite a few publications have indicated sales of Israeli security systems to Saudi Arabia. This common interest created the necessary basis for the other areas, as well as a significant geopolitical Israeli influence ability than in the past. This is evidenced by the American effort to mobilize Israel to help persuade Saudi Arabia to increase oil production due to the global shortage of energy sources created by Russia’s invasion of Ukraine.
The Saudis, who have been disappointed by the Americans several times in recent years, do not readily agree. This week, two of US President Joe Biden’s advisers arrived in Saudi Arabia to advance the issue, and talks – according to American sources – will also raise the issue of promoting economic and trade relations with Israel.
For the first time, the Saudis are blaming the Palestinians
Officially, Saudi Arabia is wary of publications about ties with Israel. The Saudis bother to make it clear at every opportunity that progress with Israel will come only after progress with the Palestinians. Saudi Foreign Minister Faisal bin Farhan reiterated this week, saying: “The integration of Israel in the region will be a huge benefit not only for Israel itself but for the entire region, but without addressing the core problems of the Palestinian people and granting respect and sovereignty to the Palestinian people through the establishment of a Palestinian state.” Of Israel and the security of the entire region. “
However, the Saudis – unofficially expressed on social media – blame the Palestinians as well. Pictures of stones, Molotov cocktails and other improvised weapons brought by young Palestinians into the Al-Aqsa Mosque have sparked outrage in Saudi Arabia. The diplomatic change vis-à-vis Israel will probably take place only after the official transfer of power from King Salman to his son Muhammad. But economic change is already here, and the pace is picking up.
Awaiting Kushner’s Private Equity Fund
Saudi Arabia’s ongoing confrontation with Iran, both over the nuclear issue (especially during the 2015 nuclear deal) and the Yemeni civil war, has led to further rapprochement between Saudi Arabia and Israel this time in the areas of security and intelligence. The great acceleration in the civil sphere occurred after the agreements of Abraham, signed by former Prime Minister Benjamin Netanyahu with the neighbors of Saudi Arabia, the United Arab Emirates and Bahrain. The largely positive manner in which this agreement was received in Saudi public opinion, and its economic and other benefits paved the way for the expansion of these ties. For example, the tacit agreement of the Saudis was expressed in the possibility of allowing planes from and to Israel to cross over Saudi territory, both to the Emirates and Bahrain and to the Far East.
A significant step to the light and normalization of relations has been made in recent weeks with the publication in the Wall Street Journal of a Saudi investment of $ 2 billion in the private equity fund set up by Jared Kushner, son-in-law of former President Donald Trump. The fund, which totals $ 3 billion, is intended for investment in Israeli companies in the fields of advanced technology.
This is not the first time Saudi Arabia has invested in Israeli companies: Through an investment fund of another former Trump administration official, Stephen Manuchin, the Arab kingdom is investing in Israeli start-ups operating in the US and signing agreements with the US defense establishment, including cybercommunications and cyberspace. But the investment in Kushner’s fund is from the funds of the Saudi Wealth Fund, with the direct approval of Muhammad bin Salman, the regent and powerful man in the kingdom.
Late celebration of the Avraham agreements: Netanyahu is expected to arrive in Dubai for the Cybertech conference
In mid-June, the CyberTech Conference – Dubai 2022 will be held in the Emirates. The conference may be the event that will bring to the first country that signed the agreements with Abraham with Israel the one who signed the agreements – but like Moshe Rabbeinu, did not attend it himself: former Prime Minister Benjamin Netanyahu.
The Cybertech conferences were established by the journalist and entrepreneur Amir Rapaport, and they attract a great deal of interest in Israel and around the world. Globes has learned that Netanyahu, who attended some of Cybertech’s previous conferences, was invited this time as well, and there is agreement in principle on his arrival in Dubai and on a speech he will give to the conference island.
However, there is still no final approval for the visit, mainly due to the political situation and the opposition’s attempts to overthrow the government.
Netanyahu at the time of signing the Avraham agreements, September 2020 / Photo: Reuters, Tom Brenner
Netanyahu, it will be recalled, did not come to the emirates or other Abrahamic treaty countries, at least not for a public visit, to celebrate the treaties. Several planned visits were canceled for various reasons, including the corona and also the frequent political crises in the last year of his reign. Netanyahu prevented other government ministers from flying to the Emirates before him, and the last attempt was in March, 2021 a few days before the election, a visit designed to also include a meeting with the regent (and current ruler) Muhammad bin Zayed. But then the trip was canceled, in part because of a conflict with Jordan that prevented it from crossing into the Emirates. After the dispute was resolved, Netanyahu decided not to leave due to the hospitalization of his wife, Sarah, who suffered from appendicitis.
During his visit, Netanyahu sought to illustrate his greatest achievement as prime minister, the Avraham agreements, before the election. A few weeks after the formation of the Bennett-Lapid government, Foreign Minister Yair Lapid hurried to visit the Emirates for the first official visit of an Israeli minister after the Avraham agreements. During that visit, Lapid inaugurated the embassy in Abu Dhabi, where he gave credit to Netanyahu for signing.