Saudi recognition of Israel would also open up natural geographic routes for pipelines.
The old Tapline (Trans Arabian Pipeline) was supposed to terminate in Haifa, but they re-routed through Syria, which they (later) had to shut down when relations went sour. That pipeline could be activated as fast as the Israelis could build their stretch and port facilities. The Saudi/Jordanian part is already built and idle (but would need refurbishing).
The Israelis also have an economic equivalent of nuclear weapons - their human capital. Tiny Israel has been called “Start-up Nation” for its huge number of new businesses, as well as a huge number of patents. Not only do they bring this world-class economic dynamism with their own population, but they can rapidly leverage Jewish elites in the United States, Europe and Russia as well - a world-class asset, that could stimulate a frenzy of investment interest if there was real opportunity.
“Palestinian” Arabs used to be respected in the Gulf as competent employees for white collar service and middle management jobs - a cut above their domestic populations. They have been largely shut out since Arafat sided with Saddam in the Gulf War though. Should Saudi Arabia recognize Israel, Palestinians also could be a significant source of human capital to jumpstart Neom’s growth. Good jobs and real career options would be a Godsend for many Palestinians - close enough drive home for holidays, and nice enough to not want to.
There are huge synergies to an Israeli-Saudi free trade zone, as well as in a security partnership.
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Yes, a pipeline through Syria rather than Israel wasn’t smart, and the Saudis probably knew it at the time. Times have changed. As to relations with Israel, could the Saudis recognize that a Republican, a Trump perhaps, if relations are to warm, this is the time to do it.
Another nice thing about a huge, purpose-built, EPCOT-like megalopolis for all Arabs to reside, is, if they got nuts again, one air raid, goodbye.
Great point about the pipeline.
The Saudis have most of their oil fields in the predominantly Shia area of the country.