U.S. President Donald Trump’s recent visit to Saudi Arabia, the United Arab Emirates and Qatar must be a wake-up call for Israel.
Trump is doubling down on technology and business as the driving force of his diplomatic strategy in the region, signaling a shift from traditional politics. He didn’t just bring political theater during his visit, but also brought the CEOs of OpenAI and NVIDIA—two of the most consequential players in the artificial-intelligence revolution. The message was clear. Technology is no longer an industry; it is a pillar of national power and a lever for global influence.
Yet despite Israel’s global leadership in AI, semiconductors and dual-use innovation, Israel was on the sidelines.
While Gulf countries position themselves as hubs of commerce and innovation, Israel is weighed down by a government that is treating diplomacy like a domestic public-relations tool. Israel’s tech sector is world-class, but it is at risk of missing the window to translate that into long-term regional influence.
According to Trump’s Middle East envoy Steve Witkoff, Saudi Arabia could join the Abraham Accords, sanctions on Syria are being reconsidered and the UAE is doubling down on regional tech and AI infrastructure. These shifts are redefining how this region collaborates, and Israel is absent from the agenda.
Israel cannot afford such shortsightedness. Israel’s innovation economy was built on speed, adaptability and global ambition. But it needs to update the playbook. That means treating tech as statecraft and recognizing the deeply complementary nature of Israel’s potential partnerships with the Gulf.
These new frontiers, including AI, food systems, climate resilience and infrastructure, demand regional collaboration. And Israel has a unique role to play. But to stay in the game, it needs strategy, not just science. Israel needs to align its diplomacy with its economic strengths.
Technology is the new currency. The question is whether Israel wants a seat at the table or to watch others set the terms.
The postwar digital model, where the United States designed the chips, Asia manufactured them and American cloud platforms stored the world’s data, is being redefined. Semiconductors, cloud services, AI models and satellite networks influence economic competitiveness, national security and the ability to act independently in moments of crisis.
The countries that will lead in the coming decade are those that can integrate three critical layers:
- Horizontal infrastructure like chips, compute power, data centers and secure connectivity.
- Digital governance, including cloud storage, encryption and data sovereignty.
- Vertical models and applications, for example, AI systems trained on local data, aligned with national laws and societal priorities.
Building this kind of national stack was out of reach not long ago. Today, it is within range. Countries have access to modular data-center tools, national-scale model training capabilities and increasingly adaptable chip platforms. The opportunity is real, and the timeline is short.
As Arthur Mensch of Mistral AI has noted, AI systems are not simply technical tools. They shape culture, identity and values.
Jensen Huang of NVIDIA, who joined Trump in the Gulf, put it clearly when he said: “This is the most consequential technology of all time: digital intelligence. It is now your new national infrastructure. Just like telecommunications, electricity and defense, it’s something you have to build and own. If you don’t, you are outsourcing your future. This isn’t about catching up; it’s about remaining relevant in a world where technology is the new currency of power.”
Israel is not a large market, but it is a clear example of how small countries can punch above their weight through strategic innovation. Israel hosts more than 30 global semiconductor R&D centers. More than 450 multinationals run innovation hubs in the Jewish states. Israel’s tech sector generates 20% of GDP and 53% of exports, and employs 12% of the workforce.
Israel has proven it can build. The question now is whether it can scale with purpose. It already has national programs supporting AI, chip design and infrastructure resilience. The next step is execution. That means translating agility into long-term capacity and moving from reactive policy to proactive strategy. Those who treat innovation as a siloed domain risk falling behind.
Global partnerships remain essential, but sovereignty begins with capability. Independence means engaging with partners on an equal footing and safeguarding national interests. That requires investment, alignment and a commitment to treat innovation not as a sector but as a foundation of statecraft.
The world is entering a period in which control over the digital stack will define global leadership. Those who lead will write the rules; the rest will follow them. Technology determines resilience, drives growth and shapes influence. The nations that recognize this act accordingly will define what comes next. Hopefully, Israel will be among them.