Israel and Saudis plan economic alliance

by time news

2023-08-07 16:47:12

Tel Aviv It would be a coup for Israel’s prime minister and a sensation for political observers: in an interview with Bloomberg TV, Benjamin Netanyahu raved about close economic cooperation with Saudi Arabia. According to his vision, a common “economic corridor” would be established from the Arabian Peninsula to Europe. The main thing is to cooperate in the field of energy, transport and communication technologies. “That would have enormous economic consequences for investors,” said Netanyahu.

Saudi Arabia, of all places: For more than 70 years, the most important country in the Arab world and Israel have faced each other irreconcilably. Now both countries want to move closer together – on two levels:

Military: Although Riyadh resumed diplomatic relations with Tehran in March, Iran remains a threat to the Middle East’s largest economy. Both Saudi Arabia and Israel fear the mullahs’ aggression. Defense cooperation with various countries in the region was explored under the leadership of the United States last year in order to set up a joint air defense early warning system.

Economically: The fear of Iran also welds together economically. Netanyahu said such an alliance would not only boost both countries’ economies. It will also deter Iran from aggression in the region.

The announced cooperation is likely to be welcomed in Washington. US President Joe Biden has long been pushing for rapprochement between the formerly enemy states. In July he sent national security adviser Jake Sullivan to Riyadh to discuss Israel with Crown Prince Mohammed bin Salman.

Despite the lack of formal ties, Israeli tech and cybersecurity companies have more or less covertly done business with the kingdom in recent years. The Saudis are primarily interested in military and intelligence technologies.

For example, Israel sold NSO Group’s notorious spy software, which can be used to hack phones, to Saudi Arabia. In late 2020, media reported that Netanyahu had flown to Saudi Arabia to meet with the crown prince – a trip that was never officially confirmed by either side.

Mohammed bin Salman, Joe Biden

The US President wants better relations between Riyadh and Tel Aviv.

(Photo: VIA REUTERS)

In the meantime, however, some business relationships have also been officially established. Last year, for example, Saudi Arabia opened its airspace to airlines flying to and from Israel.

At the end of July, an Israeli solar company and a Saudi holding company also pushed ahead with a joint venture. The 16 billion company SolarEdge, which is the only Israeli company included in the S&P500, wants to work with the Saudi holding company Ajlan & Bros, one of the largest private conglomerates in the Middle East and North Africa.

SolarEdge specializes in photovoltaic energy generation, optimization and monitoring systems. The aim of the cooperation is to “support the introduction of intelligent solutions for renewable energies in Saudi Arabia,” according to a joint press release. SolarEdge aims to help the kingdom implement Vision 2030, which includes reducing dependency on oil by the end of this decade.

>> Read also: Peacemaker with a double strategy: This is how the Saudi crown prince wants to increase his influence

The alliance is notable because Israel and Saudi Arabia have no diplomatic ties. Until a few years ago, most Arab states rejected relations with Israel as long as the occupation of Palestinian land continued.

But a paradigm shift came with the signing of the Abraham Accords between Israel, the United Arab Emirates (UAE) and Bahrain. The Gulf Arabs signed the treaty without Israel having to make any concessions to the Palestinians. Agreements with Morocco and Sudan followed later.

Even if Saudi Arabia has not yet joined this wave of normalization, the process would not have been possible without Riyadh’s consent. The announcement of the Saudi-Israeli joint venture came after Israel’s Foreign Minister Eli Cohen gave a thumbs-up. The country is “closer than ever” to a peace deal with the Saudis.

According to the New York Times, however, Riyadh is demanding a massive security pact between the United States and Saudi Arabia in return. Riyadh also has US support for a civilian nuclear program and a US security guarantee based on the NATO model on the wish list. Another point is progress on the Palestinian question, according to Tel Aviv.

Solar power plant in Israel

Saudi Arabia is hoping for technological solutions from Israel. It is also about renewable energies, because Riyadh no longer wants to be an oil state in the future.

(Foto: picture alliance/dpa)

Although Netanyahu is committed to normalization with the Saudis, he would first have to defuse a domestic political problem. His radical nationalist coalition is talking about annexing Palestinian territories. Netanyahu’s coalition partners don’t even want to hear about minor concessions to the Palestinians, which Riyadh considers a prerequisite for establishing diplomatic relations.

The prime minister promised he would not allow a Palestinian state without Israel exercising security control over it. Otherwise you will “get an Iranian terrorist state,” he said. “The Palestinians should have all the powers to govern themselves, but no powers to threaten Israel.”

But as much as the Palestinian issue might stand in the way of a deeper relationship with Saudi Arabia, Jerusalem would have much to gain politically from such an alliance. Saudi Arabia’s international influence as guardian of the holy sites of Mecca and Medina would help the country gain more recognition in the Muslim world, political observers argue.

“It would symbolize Israel’s ability to maintain normal relations with neighboring states, even though the Palestinian conflict remains unresolved,” writes former US intelligence official Paul Pillar. The only beneficiary of such symbolism would be Israel’s right-wing government.

For the Saudi ruling family, on the other hand, a rapprochement with Israel is not without risks, argues former US ambassador to Saudi Arabia, Chas Freeman. The anger of Saudi citizens at Jerusalem could trigger a “political convulsion, maybe even a revolution in Saudi Arabia”.

More: State crisis in Israel strains partnership with the USA

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