Israel and the Gulf Quietly Build a Tech Alliance
Early in Gabriel Colodro’s report, the numbers look almost too neat: Gulf Cooperation Council involvement in Israeli tech seems modest, concentrated, and largely associated with one country. But the point of this story is that the clean spreadsheet misses the messier reality—where much of the relationship lives.
Startup Nation Central’s Annual Report 2025 shows Israeli tech drew $16.7 billion in private investment in 2025, even as the number of funding rounds fell. Capital is pooling into fewer, bigger bets, skewing toward later-stage companies with proven traction. Against that backdrop, Gulf-linked participation shows up as smaller, early-stage tickets—suggesting caution, until you account for what does not get labeled “Gulf” at all.
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Yariv Becher, Startup Nation Central’s vice president for business development and partnerships, says the dataset materially understates Gulf engagement. The UAE appears dominant because it can invest openly, thanks to diplomatic ties, leaving a visible trail. Investors from Saudi Arabia and other Gulf states, Becher says, often route activity through foreign venture capital funds and offshore family offices, which muddies attribution while keeping the money moving.
Beyond investment mechanics, Becher argues there is an ecosystem fit: Israel’s dense innovation base paired with Gulf capital, infrastructure, and scaling capacity—especially in the UAE. Israeli firms that have validated products, often in the US market, can use the UAE as a platform to expand.
Sector priorities also track Gulf needs and opportunities: cybersecurity and business software for returns, plus agri-food, energy, water, climate, and health tech for structural challenges. Becher also flags predictable friction—mistrust, misunderstanding, misalignment, and misexpectations—yet says ties proved resilient even after October 7.
The bottom line: normalization, in practice, may be ahead of formal politics. For the full texture, read Colodro’s complete piece.
