The Potential Benefits of a Peace Agreement Between Saudi Arabia and Israel

Global political events often have sweeping impacts, reshaping economic, social, and military landscapes. A peace agreement between Saudi Arabia and Israel promises a myriad of benefits across various sectors, from trade and tourism to education and technology. This article delves into the potential advantages that could arise from this historic agreement.

Trade Potential

The long-term strategic value of a peace agreement between Saudi Arabia and Israel lies largely in the realm of trade. Both countries have significant economic interests in diversifying their economies away from their primary reliance on hydrocarbon exports. The diversification of economic activities can create new opportunities for mutual benefit.

Bilateral Trade: Current estimates suggest that Saudi Arabia could achieve an annual bilateral trade of up to $8 billion with Israel. This figure is based on the size of the economies and population of both nations. As the world's largest arms importer, Saudi Arabia stands to benefit immensely from open trade with Israel, which is among the world's top arms exporters.

Potential Realignment of the World’s Hydrocarbon Supply Chain

A peace agreement could lead to a significant realignment of the world's hydrocarbon supply chain. This includes the possibility of pipelines that would transport oil and gas from the Gulf to Europe and the Mediterranean through Israel. Such a pipeline would reduce reliance on the Persian Gulf waterways and the Suez Canal, and introduce greater competition to Russian gas supplies.

Reformation of Education and Media

The impact of a peace agreement is not limited to trade; it could also lead to a reformation in education and media. Saudi Arabia and other Arab countries have long reviled Israel and Jews in their school textbooks and media. A peace agreement could spur changes in how these narratives are portrayed, promoting a more nuanced understanding of the Jewish state.

Education: Saudi Arabia is already taking steps to revise its school textbooks, which have long vilified Israel and the Jewish people. These changes are part of a broader effort to foster a more inclusive and tolerant society. The UAE has shown that even modest changes can spark broader reforms. As Saudi Arabia joins the Abraham Accords, one can expect to see a complete overhaul of its educational and media landscape.

Tourism Benefits

A peace agreement could significantly boost tourism between the two countries. Currently, Saudi Arabia restricts Jewish citizens from making the Hajj or Umrah. A peace agreement could ease these restrictions, allowing for a smoother flow of pilgrims. Additionally, Saudi citizens could enjoy freedom of movement to visit the Haram esh-Sharif Temple Mount, and there is potential for increased business traveler exchanges between the two countries.

The Domino Effect on Other Nations

The agreement between Saudi Arabia and Israel could have a domino effect, as other Arab and Muslim nations adapt to the changing political climate. A visible and active approval from Saudi Arabia could make it more challenging for other countries to resist joining the Abraham Accords, thereby further fostering regional peace and stability.

Military and Defense Initiatives

A peace agreement could also facilitate military and defense collaborations between the two countries. Joint military training, as well as defense technology transfers, would be potential areas of cooperation. Additionally, Israel's advanced missile and drone defense systems, as well as its expertise in cybersecurity, could be of significant interest to Saudi Arabia.

Business Collaboration: In line with military initiatives, the anticipated $8 billion in bilateral trade could drive significant business collaboration. Israeli companies are already expected to have a presence in the UAE, and it is anticipated that many more would set up in Saudi Arabia, while Saudi companies would establish operations in Israel. This would lead to increased business travel, hotel accommodations, office spaces, and joint projects.

Conclusion

A peace agreement between Saudi Arabia and Israel holds the potential to transform the geopolitical landscape, leading to a myriad of benefits, including trade expansion, educational reforms, enhanced tourism, and robust military and defense collaborations. The positive ripple effect on other nations in the region further accentuates the importance of this historic agreement.