Report: Israel, Saudi Arabia Negotiating Economic Ties

The two countries are reportedly looking at developing relations in steps, possibly starting by allowing Israeli companies to operate in the Arab nation, or giving Israeli airline El Al permission to fly over Saudi airspace

US President Trump meets with Saudi King Salman bin Abdulaziz Al Saud (Photo: AP)

Saudi Arabia and Israel are in talks to establish economic ties, The Times reported on Saturday. 

Arab and American sources told The Times that the links would start small: allowing Israeli businesses to operate in the Gulf, for example, and letting El Al, the national airline, fly over Saudi airspace.

However, any such progress would bolster the alliance between Iran’s two most implacable enemies and change the dynamics of the many conflicts destabilizing the Middle East, the report said.

Officials close to Saudi Arabia denied the story, saying the report was no more than wishful thinking by the Trump administration.

The report suggested that the prospect of relations with Israel may have played a role in Saudi Arabia and its allies' decision to cut ties with Qatar to pressure the Gulf state to stop supporting Hamas.  

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