In September 2023, an Israeli business delegation arrived in Saudi Arabia, marking an unprecedented move that captured media attention, an uncommon development in the context of the two countries' typical conduct.. The delegation participated in an official government conference on cybersecurity and noted that "key players in both Israel and Saudi Arabia are interested in normalizing relations."
The visit reflected that Saudi Arabia's efforts to boost its economy and empower its national talent do not preclude cooperation with Israel, in fact, they actively promote it. Despite ongoing global and regional crises over the past two years, such as the war in Yemen and the October 7 massacre, there has been accelerating economic openness between the two countries. Israeli technologies in artificial intelligence, cybersecurity, and solar energy are already being integrated into major development projects across the kingdom.
Economic and commercial ties are improving across the board. Understanding the global strategic economy and enhancing global competitiveness allow nations that rely on foreign markets to break into new ones, expand their customer bases, and increase profits - strengthening their global standing and fueling long-term growth.
Strategic trade is about more than opportunity; it's about risk management. By diversifying income sources and reducing dependency on one or a few markets, countries can better weather the shocks of a volatile global economy.
This has a direct impact on supporting small and medium-sized enterprises (SMEs), which are vital to any national economy. These businesses need backing to succeed internationally. Economic strategies that promote foreign trade and innovation can empower SMEs. When governments provide grants, training, and support programs, they create the conditions for these businesses to grow and compete globally.
A connecting, strategic location
The world is undergoing an unprecedented wave of technological development, driven by ambitious and innovative leaders shaping the future of the digital economy. Saudi Arabia is embracing this transformation with a bold vision and thoughtful approach. Given the kingdom's rapid pace of development, there is growing excitement around its strategic commitment to leadership and excellence in tech.
Under its ambitious Vision 2030 framework, Saudi Arabia is overhauling its economic mindset and building a dynamic system founded on cutting-edge technological infrastructure - across society, daily life, and the broader Gulf reality. The aim is to create new opportunities for future generations. In 2024, Saudi Arabia ranked fourth in the UN's e-government development index, 14th globally, and first in the Arab world in the global artificial intelligence index.
Economic and trade ties can also strengthen diplomatic relations. When a country engages in trade, it builds trust based on mutual interests.
International cooperation in artificial intelligence plays a crucial role in the success of a modern economy. In recent years, AI, blockchain, and data analytics have directly transformed commerce and business processes. These tools enable real-time data analysis and automation of key operations.
In the realm of global economic collaboration, governments play a central role, from promoting free trade and investing in infrastructure to creating favorable business environments. By boosting foreign investment, governments not only bring in capital but also introduce new knowledge and expertise.
The kingdom's strategic location - bridging Asia, Europe, and Africa - makes it a critical regional and global hub, both for logistics and emerging industrial potential. Establishing manufacturing facilities within Saudi Arabia provides easy access to the latest technologies needed by businesses and consumers, while reinforcing trade networks.
One example is HP's new facility, supported by a national economic development program called "Made in Arabia." This is part of the National Industrial Development and Logistics Program (NIDLP), led by the Saudi Export Development Authority, aimed at growing local businesses in collaboration with international partners. Another key goal is to encourage domestic consumers to buy local and help companies boost exports, while generating new employment opportunities.
The potential for joint Israeli-Saudi initiatives spans far beyond business and security. There is shared interest in tackling urgent global challenges, including climate change, rising disease rates, marine ecology concerns, excessive resource consumption, and the global plastic waste crisis.
In conclusion, bilateral and regional cooperation in these fields, and many others, is essential for both countries' brighter future, and advancing it is a particularly vital mission for their governments.
Dr. Omar Saif Qaid Mansour is a media expert, journalist, and political and economic analyst. He has received an honorary title from the United Nations for influential leadership in the field of communications.
