Israeli Prime Minister Benjamin Netanyahu believes Tel Aviv and Riyadh can establish an “economic corridor” even without formal recognition….reports Asian Lite News
Israeli Prime Minister Benjamin Netanyahu has expressed confidence in forging a deal with Saudi Arabia that would lead to official diplomatic ties between the two nations. However, even without formal recognition, Netanyahu believes the countries can establish an “economic corridor” spanning from the Arabian Peninsula to Europe, encompassing energy, transport, and communications technology.
During a recent television interview with Bloomberg, Netanyahu asserted that this economic partnership is achievable, regardless of the status of formal peace between the two nations. Nevertheless, it remains uncertain whether Saudi Arabia would be willing to accept such deeper connections, given the prevailing opposition to the recognition of Israel among the kingdom’s public.
Netanyahu has been an advocate of normalising ties between Israel and Saudi Arabia, citing the potential economic benefits for both nations and the potential deterrence against Iran’s aggressive interference in the region, particularly concerning oil-shipping routes.
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While Saudi Arabia and Iran restored diplomatic relations earlier in a deal brokered by China, Riyadh continues to view Tehran with suspicion, considering it a geopolitical rival.
US President Joe Biden is also eager for Saudi Arabia to recognise Israel and sent National Security Adviser Jake Sullivan to discuss the issue with Crown Prince Mohammed bin Salman last month.
Netanyahu emphasized that the economic consequences of such recognition would be significant for investors, expressing his belief that the odds are favourable. However, Netanyahu said he cannot guarantee the outcome.
Riyadh has previously stated that an independent Palestinian state is a precondition for any potential deal with Israel. In recent months, Saudi Arabia has expressed frustration over Israel’s relations with the Palestinians, evident in incidents like the raid on a refugee camp in the West Bank and controversial remarks made by some members of Netanyahu’s coalition.
Privately, Saudi Arabia has requested firm defence guarantees from the US, access to advanced American weaponry, and permission to enrich uranium domestically as part of its plans to develop nuclear power plants, the Bloomberg reported.
Meanwhile, the Israeli PM downplayed the Palestinian issue, characterising it as merely a “check box” in the context of a Saudi-Israeli deal. He indicated that discussions on the matter in corridors and discreet negotiations are far less significant than perceived.
Regarding potential limitations on new Jewish settlements in the West Bank, Netanyahu declined to confirm if he would accept such conditions to reach an agreement with Riyadh. He asserted that a Palestinian state without Israel’s security control would risk turning into an “Iranian terror state.” Netanyahu’s stance emphasises the need for Israel to maintain overriding security power in the entire region, both for Israel’s own security and that of the Palestinians.
Renewables deal with Saudi firm
Recently, Israel’s SolarEdge Technologies Inc. entered into a joint venture with Saudi Arabia’s Ajlan & Bros Holding to deploy “smart renewable energy solutions” in the kingdom.
The joint venture is “in line with the Saudi Vision 2030 initiative that aims to reduce the country’s dependence on oil by the end of this decade,” the Herzliya-based company said in a press statement.
It will be established in the kingdom’s capital, Riyadh, where the private sector conglomerate is based.
“We are honored to partner with Ajlan & Bros Holding and to support Saudi Arabia’s journey towards ‘Vision 2030’. SolarEdge is committed to driving the clean energy transition on a global scale, exemplified by this JV which will provide local enterprises in Saudi Arabia with the support they need to rapidly transition away from fossil fuels to clean solar energy and meet their aggressive renewable energy goals,” SolarEdge CEO Zvi Lando said.
It will be managed by teams from both companies, with Ajlan & Bros Holding as the majority shareholder.
The news of the deal comes amid reports of potential progress on a U.S.-brokered rapprochement between Jerusalem and Riyadh that would see the Saudis join the Abraham Accords.
Israeli and US officials have hinted of possible progress in recent days. Israeli media reported on Sunday that the country’s opposition parties are open to the possibility of supporting a Saudi peace agreement if Prime Minister Benjamin Netanyahu’s right-wing coalition partners object to possible Saudi demands for concessions to the Palestinians.
Israel’s Foreign Minister Eli Cohen recently said that a peace agreement is “closer than it has ever been.” However, a day earlier Likud MK Yuli Edelstein had a more cautious take on the negotiations, saying that it was “too early” to talk about an agreement.
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