Trump’s victory signals a new era of peace – through regional tech ties with Israel - opinion

The US woke up this morning to a new reality: Donald Trump has been elected as the 47th president of the United States by a resounding majority, after Kamala Harris, seen as the continuation of Biden and Obama’s policies, failed to gain traction across the country.

President-elect Trump is a true friend of Israel. As we’ve seen time and again in recent years, true friendship is measured not in words, but in actions.

During his first term as the 45th president, Trump worked tirelessly to promote peace in the Middle East while staunchly defending Israel’s rights. His approach contrasted sharply with that of the Obama-Biden administration, which often struggled with the region’s complex geopolitics. Trump’s firm stance on Iran, recognition of Jerusalem as Israel’s capital, and the Abraham Accords reshaped the regional landscape, setting the stage for a new era of peace and cooperation.

Since 2017, US pressure on Iran increased with America’s pullout from the nuclear deal and the imposition of heavy sanctions. Hezbollah was designated a terrorist organization by the US, the US moved its embassy to Jerusalem, Israel’s eternal capital, recognized Israeli sovereignty over the Golan Heights, and was a key architect – alongside then-prime minister Netanyahu – of normalization agreements between Israel and Bahrain, the UAE, Sudan, and Morocco.

These agreements, known as the Abraham Accords, marked the beginning of what was expected to be a wave of broader regional peace agreements, potentially including Saudi Arabia and other Gulf states. However, that vision stalled when Trump lost the 2020 election. Under the Biden administration, the region has since experienced increased instability, with the administration struggling – much like Obama did – to manage a clear foreign policy or understand the Middle East’s delicate power dynamics.

With Trump’s return to the White House, a new path could open for Israel, Saudi Arabia, and potentially other Gulf countries, to join American-backed normalization agreements, offering tremendous economic opportunity for the region.

What dowries do Saudi Arabia and Israel bring to the table, and what role will the US play?

Saudi Arabia brings with it a flourishing economy and a relatively young population of 37 million, eager for innovation. With an average age of 30 and a GDP per capita of $28,000, Saudi Arabia is investing heavily in its Vision 2030, aimed at transforming the kingdom from an oil-dependent economy into a diversified and advanced one. This ambitious vision is crucial for securing Crown Prince Mohammed bin Salman’s power both domestically and internationally.

Israel, with nearly 10 million people and an average age of 30, has a GDP per capita of $60,000 – more than twice that of Saudi Arabia. Despite challenges in recent years, Israel’s economy continues to thrive, largely due to its hi-tech sector, which accounts for 50% of the country’s exports and nearly 20% of its GDP. Israel is home to 7% of the world’s unicorn companies and boasts some of the world’s most talented tech professionals, with over 15% of its workforce employed in hi-tech. In addition, Israel hosts more than 400 global companies’ R&D centers, including giants like Nvidia and Microsoft.

As the world’s third-largest tech hub, Israel brings invaluable technological expertise, particularly in sectors like cybersecurity, defense tech, AI applications in health, education, banking, and more.

Saudi Arabia, on the other hand, brings a huge appetite for both military and civilian technologies, a virtually limitless budget, and numerous mega-projects as part of Vision 2030, where these technologies can be deployed.

A tech-savvy partnership with US backing

Alongside its technological prowess, Israel brings another significant advantage to this regional partnership – its reputation as a trusted partner in the US-led alliance.

This allows Saudi Arabia and other Gulf states not just technological collaboration but also US support, providing access to systems and intelligence networks that Washington has traditionally kept at a distance.

In recent years, Israeli companies have engaged in significant business relationships with Gulf states, even with countries with which Israel does not yet have formal peace agreements. Israeli AI firms such as Dream Security and BridgeWise, for example, have sold tens of millions of dollars worth of technology solutions to Gulf nations.

Gulf investors have quietly begun to join Israeli-related tech companies’ cap tables, injecting capital into Israeli firms, often without public announcement. These activities – both sales and investments – highlight the growing economic ties between Israel and the Gulf and the immense interest from both sides in fostering deeper technological collaboration.

Under the Trump administration, with the expansion of agreements to include Saudi Arabia, Israeli AI companies could serve as platforms for entire industries in the Gulf, including education, banking, healthcare, and cybersecurity.

The Gulf states are already engaged in a massive technological arms race, spending billions on acquiring chips and building server farms to prepare the infrastructure needed to compete in the new world of advanced technology. However, they cannot meet this challenge alone.

Technology architecture without skilled human resources to build applications – whether for new commercial enterprises or technologies to enhance government efficiency – is like a luxurious building without residents.

Israel can export its technological expertise to the Gulf, selling its cybersecurity and AI applications. Saudi Arabia, in turn, can help Israel advance more rapidly in building the physical infrastructure needed for supercomputers, data centers, and other technological projects, investing alongside the US in Israeli national initiatives.

Interconnected forces shape the Mideast’s future

The political instability in the Middle East, the AI revolution, and the US political landscape are not isolated from each other – they are intertwined.

Two months ago, I met with Donald Trump in Washington, where we discussed the AI revolution and how his administration if reelected, could help Israel maintain its technological superiority in the region. We agreed that once he won the election, we would revisit the topic in a future meeting.

And so we will.

This morning, as the sun rises over Washington, it is clear as day: the path to a new technological Middle East passes through Riyadh, Jerusalem, and the White House.

The writer is an American-Israeli venture capitalist, founder of venture fund Group 11, and founder of The Institute for National Research on AI Applications. He also serves as an adviser to the Israeli Prime Minister’s Office on national and regional AI advancement.