Israel, Saudi Forge Solar Alliance in Rare Pact

• SolarEdge Technologies and Ajlan & Bros join forces to develop renewable energy in Riyadh for Saudi Arabia's Vision 2030 plan, a US-backed effort to diversify the economy from oil and attract investments. This groundbreaking collaboration may be the start of improved relations between Israel and Saudi Arabia.

SolarEdge Technologies Inc., an S&P 500 company based in Israel, is forming a joint venture with a Saudi Arabian firm, Ajlan & Bros Holding, to develop renewable energy in Riyadh. This is a rare business collaboration between two countries that don’t formally recognize each other. The joint venture seeks to help progress the Vision 2030 plan, championed by Crown Prince Mohammed bin Salman, which is meant to diversify the kingdom’s economy from oil and attract billions of dollars in investments.

The agreement came a day after Israeli Foreign Minister Eli Cohen and US Special Envoy Dan Shapiro discussed expanding Israel’s ties with countries in the Middle East. The US is keen for Israel to form a diplomatic alliance with Saudi Arabia, but this process is currently hindered by Prime Minister Benjamin Netanyahu’s deteriorating relations with the Palestinians. SolarEdge shares rose 2% on Monday to $241.46, its biggest jump since mid-July,and the company is valued at $13.6 billion.

What Impact Does SolarEdge's Joint Venture with Saudi Arabia Have?

• The joint venture is a rare collaboration between two countries that do not formally recognize each other.
• It seeks to help progress the Vision 2030 plan championed by Crown Prince Mohammed bin Salman, which aims to diversify the kingdom's economy from oil and attract billions in investments.
• SolarEdge Technologies Inc. is an S&P 500 company based in Israel, and the joint venture is with Saudi Arabian firm, Ajlan & Bros Holding.
• SolarEdge shares saw a 2% rise on Monday, and the company is currently valued at $13.6 billion.
• The agreement comes a day after Israeli Foreign Minister Eli Cohen and US Special Envoy Dan Shapiro discussed expanding Israel’s ties with countries in the Middle East.
• US officials are keen for Israel to form a diplomatic alliance with Saudi Arabia, but the process is currently hindered by Prime Minister Benjamin Netanyahu’s deteriorating relations with the Palestinians.
• The joint venture with SolarEdge Technologies Inc. is a step in the right direction for Saudi Arabia's Vision 2030 plan and a sign of the potential for increased cooperation between Israel and Saudi Arabia.