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Business · Israel and Gaza

Saudi Diplomat: No Normalization Deal Until Netanyahu Steps Down

A source familiar with Riyadh's strategy told KAN News that the two-state solution is the price of admission, a stance the kingdom has reiterated since 2025.

By Simon Bennett ·

Illustration for: Saudi Diplomat: No Normalization Deal Until Netanyahu Steps Down
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The window for a diplomatic breakthrough between Israel and Saudi Arabia appears closed for the next year, according to a source with direct access to the Saudi diplomatic agenda. The official told Israel's KAN News on Thursday that normalization is off the table as long as Prime Minister Benjamin Netanyahu heads the government. This assessment aligns with a specific timeline previously suggested by Riyadh, which pegged a potential shift in policy to the formation of a new Israeli cabinet.

The source emphasized that the obstacle is policy rather than personal animosity. "Saudi Arabia wants peace, negotiations, and for the Israeli-Palestinian issue to be closed via a two-state solution," the source stated. "But Netanyahu is not there." The official added that Riyadh has no specific interest in the identity of the Israeli leader, but views the current administration as seeking escalation over stability. "Netanyahu, in our view, only wants to cause problems. He does not want peace; he wants escalation," the source said.

This position is consistent with statements made in October 2025. At that time, a Saudi royal-family source told Israel's Channel 12 that the kingdom was willing to normalize relations only after Israel elected a government that would recognize a two-state solution. The source projected that such a change could occur before the end of October 2026, provided a new government accepted the two-state principle and ended the Middle East crisis.

The diplomatic friction intensified in late October. On October 25, two days before the Israeli elections, Saudi Arabia joined Turkey, Egypt, and Pakistan in signing a joint statement. The document declared Israel to be the fundamental source of instability in the region and beyond. While the language was sharp, analysts suggest the move does not kill the Abraham Accords but rather raises the bar for future engagement.

Dr. Ahmed Alkhuzaie, a Gulf analyst, noted that the joint statement makes the conditions for normalization considerably more demanding. He explained that the document reinforces the message that Riyadh is unlikely to separate relations with Israel from meaningful progress on the Palestinian file. "In effect, Saudi Arabia is signaling that normalization can no longer be advanced solely through strategic, economic, or security calculations while the Palestinian question remains unresolved," Alkhuzaie said.

The current diplomatic posture leaves the economic and security ties between the two nations in a holding pattern. Until a new Israeli government is formed and formally adopts the two-state framework, the Saudi side maintains that the agenda remains static. The next critical juncture for potential movement is late 2026, contingent on the outcome of the Israeli political process and the formation of a cabinet willing to close the Palestinian issue.

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