Reuters reported on Monday that the Israeli Minister of Economy and Industry, Nir Barkat, met with Saudi Trade Minister Majid bin Abdullah Al-Kassabi on the sidelines of a conference hosted by Abu Dhabi.

Israeli Channel 12 revealed that both ministers discussed economic collaboration between Saudi Arabia and "Israel". It quoted Barkat, "We [Israel] are interested in peace with countries that seek peace", adding that "Israel" and Saudi Arabia "could make history together".

فيديو يظهر مصافحة وزير الاقتصاد الإسرائيلي لوزير التجارة #السعودي في #أبو_ظبي.#الميادين pic.twitter.com/JZC4Fvafte

— قناة الميادين (@AlMayadeenNews) February 26, 2024

Earlier this month, Saudi Arabia revealed it would establish diplomatic relations with "Israel" only if a Palestinian state is recognized within its 1967 borders, with the eastern part of al-Quds as its capital provided the aggression on the Gaza Strip is ended, the Saudi Foreign Ministry said.

"The Kingdom has communicated its firm position to the US administration that there will be no diplomatic relations with Israel unless an independent Palestinian state is recognized on the 1967 borders with East Jerusalem as its capital, and that the Israeli aggression on the Gaza Strip stops and all Israeli occupation forces withdraw from the Gaza Strip," the Ministry said in a statement.

It is necessary that the "Palestinian people obtain their legitimate rights," the ministry stressed, adding that it called on the permanent members of the UN Security Council to recognize the Palestinian State.

The Saudi Arabian paradox

Saudi Arabia has reiterated its call for the establishment of a Palestinian state as a condition for normalization with the Israeli occupation several times. 

At the beginning of February, two senior regional sources informed Reuters that Saudi officials have told their US counterparts that Riyadh is willing, in exchange for normalization with "Israel", to accept "a political commitment from Israel towards a two-state solution" without having the occupation take any concrete steps. 

This was done in a bid to get a defense pact with Washington approved before the US presidential elections.

One of the senior regional sources stated that "normalization does require really - if not legally, at least politically - a commitment from the Israelis that they are open to a two-state solution."

"If Israel stopped its military offensive on Gaza - or at least declared a ceasefire - it would make it easier for Saudi Arabia to go ahead with the deal," they added.

Read more: Israeli-Saudi normalization in Checkmate, a realist analysis