Jon’s view
The return of President Donald Trump to the White House has revived expectations that he will be able to complete the historic Middle East peace process he began with the Abraham Accords in 2020 with the ultimate prize: the establishment of diplomatic and economic relations between the Kingdom of Saudi Arabia and the State of Israel.
As the founder and CEO of Israel’s most active venture investment platform, I’ve travelled back and forth to the kingdom for years. In 2022, I was honored to be one of the first two Israelis invited to speak on stage at the Future Investment Initiative in Riyadh, often called “Davos in the Desert.”
When Israel made peace with the UAE, Bahrain, and Morocco in 2020, I compared it to the fall of the Iron Curtain. The collapse of the Sand Curtain has already generated more than $3.3 billion in annual trade between Israel and the UAE. If Trump can extend the Abraham Accords to Saudi Arabia, the sky’s the limit.
While gaps remain over the precise nature of a deal, the momentum toward a Saudi-Israel normalization is unstoppable. It will change everything in the Middle East. A formal agreement will unleash a wave of joint technology and infrastructure projects, triggering an investment bonanza. Major initiatives in water, food, transportation, clean energy, and cybersecurity — fueled by Israeli-Gulf technology startups partnering with global companies — will create one of the largest venture markets in decades.
Private talks between Israeli and Saudi leaders have been held for years. Regular Saudi citizens I meet, particularly the younger generation, are enthusiastic. In 2022, The Wall Street Journal reported polling that “showed a decisive shift” in favor of diplomatic ties, “especially among Saudis under 30.”
The kingdom is swiftly modernizing its economy by adding renewables and other advanced technologies to its leadership in fossil fuels. It has developed an impressive venture capital culture of investors, startup entrepreneurs, technology creators, and business-friendly regulation.
From my conversations in the kingdom, I know there are technology investments where Israel-Saudi cooperation could yield enormous benefits. Choosing Israeli partners cuts 10 hours off the flight time each way for Saudi business leaders who want to sit with many of the best entrepreneurs in the world.
The Saudis want to incorporate the latest AI technology into their new digital businesses. Israel is developing new, lighter AI chips and edge computing power required to drive the ambitious change demanded by the crown prince.
Digitization brings increased cybersecurity risks. NEOM and other technology projects will require advanced cyber protection — a field where Israel is a world leader. Israel accounts for 40% of global cybersecurity investment.
A regional deal must also address other issues that threaten the stability of the Middle East. Arab Barometer reported in September 2022 that “in nine out of 10 countries, more than half of all citizens express concern about running out of food before being able to get more.” Israel pioneered drip irrigation techniques and reverse osmosis desalination technology, which now supply water for millions. The country recycles 80% of its water, the highest percentage in the world. Israeli food, water, agriculture, and energy technology can help alleviate conditions across the region.
Saudi investors are already participating alongside their Israeli counterparts in mobility and alternative energy companies. I expect cooperation on food security, climate technology, agriculture, health, financial technology, and much more. Cultural diversity is key to innovation. By sharing their skills and experience, Israelis and Saudis will create better technology and businesses than either could alone.
Trump’s dramatic new Gaza reconstruction proposal has yet again changed the discussion in the region and may slow the expansion of the Abraham Accords in the short term. But long-term interests remain aligned. The administration is committed to peace, and continued conflict is too costly for all. The economic and security incentives to strengthening Saudi-Israel ties are too great to ignore.
When normalization comes, the direct flight time from Tel Aviv to Riyadh will be just over two hours. I can’t wait to board that plane.
Jon Medved is the founder and CEO of OurCrowd, a venture investment platform based in Jerusalem.