What's Happening?
The United Arab Emirates (UAE) and Saudi Arabia are increasingly turning to Israeli technology to prepare for a future less dependent on oil. This shift marks a significant change from the 1973 Arab oil embargo, where oil-rich Arab states used petroleum
as leverage against Israel. Now, these same countries are seeking partnerships with Israel in areas such as artificial intelligence (AI) and cybersecurity. The Abraham Accords, signed in 2020, have facilitated these collaborations, allowing Israeli tech firms to work with Emirati and other Gulf state institutions. This includes Israeli cybersecurity firms collaborating with Emirati financial institutions and Israeli agricultural technology being applied in Gulf states facing water scarcity challenges.
Why It's Important?
This development is crucial as it signifies a major geopolitical shift in the Middle East, where technology is becoming a new form of diplomatic currency. For Israel, this represents a significant diplomatic opportunity, as its technological capabilities are now seen as essential for the post-oil future. The partnerships formed through these technological collaborations are deeper and more sustainable than traditional trade agreements, as they require ongoing cooperation and knowledge transfer. This positions Israel as a key player in the region's technological and economic landscape, potentially leading to more stable and long-lasting diplomatic relations.
What's Next?
As these partnerships deepen, we can expect further integration of Israeli technology in various sectors across the Gulf states. Projects like Saudi Arabia's NEOM smart-city initiative are likely to seek more Israeli expertise in autonomous systems and AI. This could lead to increased investment in Israeli tech firms and more joint ventures. Additionally, as AI is projected to transform major industries by 2030, Israel's role in this transformation will depend on its ability to maintain and expand these international collaborations.
Beyond the Headlines
The shift from oil to technology as a diplomatic tool highlights the changing dynamics of international relations in the Middle East. This move could lead to a more interconnected region, where technological collaboration fosters peace and stability. However, it also requires genuine partnerships and mutual benefits to be sustainable. The success of these collaborations could serve as a model for other regions looking to leverage technology for diplomatic and economic gains.
