'This is not a breakthrough, but another stage in the tightening relationship between the two countries,' said Michal Yaari, an expert on the Arab Gulf states.
This is the first known investment by the Saudi Public Investment Fund in Israeli businesses and represents a significant step in the Mideast states' relations.
Israel and a number of Gulf states, including Saudi Arabia, are concerned about the growing Iranian threat and fear the US will rejoin the nuclear deal, reports indicate.
The Saudi move 'will cheapen flights, it will shorten time, it will develop tremendous tourism and our economy,' commented Prime Minister Benjamin Netanyahu.
The announcement, made days before the White House reveals its Mideast peace plan, is the latest sign of warming relations between Israel and Saudi Arabia.
Netanyahu told the media in Lithuania that he sees thawing relations with Arab nations as a potential new avenue to pursue peace with the Palestinians.
A former CIA head and his sitting counterpart confirmed that Israel is maintaining contacts with Saudi Arabia regarding common interests concerning Iran.
Amos Yadlin, who previously served as the head of Israel’s military intelligence, explains that Israel has been coordinating under the radar with Saudi Arabia in their joint fight against Iran.
In what appears to be a new era in relations between Israel and its Arab neighbors, a former Saudi military general visited Israel recently and met with senior Israeli officials.
The sight of handbags with Hebrew script for sale in Saudi Arabia took Palestinians on a visit there by surprise. It is unclear how the bags reached their destination.
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