Drifting apart

Saudi Arabia is changing strategy in a way that makes rapprochement with Israel more remote.

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Welcome to Balance of Power, bringing you the latest in global politics. If you haven't yet, sign up here. As Saudi Arabia's crown prince forges ahead with economic reforms, he's shifting his geopolitical strategy in a way that — at least according to Israeli officials — makes normalization with the Jewish state a distant prospect. Mohammed bin Salman wants to attract much more investment and more foreigners to the kingdom. His government is opening the stock and property markets to outsiders and relaxing liquor laws. At the same time, with oil prices having slumped, Riyadh has been compelled to pare back and delay key elements of MBS's gigantic Vision 2030 diversification project. Last month, it announced it would no longer host the 2029 Asian Winter Games at Trojena, a ski resort under construction in the desert. With Saudi borrowing on international bond markets soaring, the kingdom needs additional foreign investment to fulfil its huge ambitions and provide enough jobs for its 35 million people. Mohammed bin Salman. Source: Anadolu/Getty Images It's hard to assess exactly how important cementing ties with Israel — a high-tech power well placed to bolster Saudi ambitions — will be to the success of MBS's grand scheme. Before the war in Gaza erupted in 2023, Saudi Arabia saw recognition of Israel as an important element of its reform drive. It was also motivated by the prospect of US security guarantees. Israeli defense capabilities could help protect oil fields. MBS's government now seems to realize normalization won't happen soon. It says it still wants it, though, provided Israel accepts a Palestinian state. In the meantime, Riyadh is strengthening defense ties with Pakistan and Turkey. 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