Israeli solar firm enters rare venture with Saudi business

Herzliya-based S&P 500 company SolarEdge is forming a joint venture with Riyadh-based Ajlan & Bros Holding to develop renewable energy, the two companies said Monday. It is a business partnership seldom seen between Israel and Saudi Arabia, two countries that don’t officially recognize each other.

A statement from the two companies said that the joint venture is being formed to support smart renewable energy in Saudi Arabia in line with the kingdom’s Vision 2030 initiative, which aims to wean the country off economic dependence on oil by diversifying revenue streams.

The joint venture will offer Saudi businesses solutions from SolarEdge’s portfolio of systems for energy generation, storage and management as well as site modeling and energy transition consultancy, the statement read.

Zvi Lando, CEO of SolarEdge, said, “We are honored to partner with Ajlan & Bros Holding and to support Saudi Arabia’s journey towards ‘Vision 2030’. SolarEdge is committed to driving the clean energy transition on a global scale, exemplified by this JV which will provide local enterprises in Saudi Arabia with the support they need to rapidly transition away from fossil fuels to clean solar energy and meet their aggressive renewable energy goals.”

Israel and Saudi Arabia do not recognize each other formally and the two countries have never established diplomatic relations. In 1947, Riyadh voted against the UN Partition Plan for Palestine, which aimed to split the territory of British Palestine into an Arab state and a Jewish state.

However, since several Arab countries including Bahrain and the UAE normalized relations with Israel after signing the Abraham Accords in September 2020, the path to Saudi normalization has been solidifying and there have been talks on a deal. Since the accords were signed, Saudi Arabia has allowed Israel airlines to use its airspace for flights to and from the UAE and Bahrain.

It is unclear whether SolarEdge and Ajlan & Bros Holding will run into hurdles doing business in the two countries. SolarEdge did not provide any more information on the project when Al-Monitor asked for comment.  

More business opportunities are opening between the two countries despite the lack of normalization on the political front. Al-Monitor broke the news on June 18 that the Israeli government is working with Saudi Arabia and other Gulf states to establish a land bridge that will facilitate the transfer of goods in the region.