SolarEdge Technologies, Inc., a smart energy tech company founded in Israel, has partnered with Ajlan & Bros Holding, a private conglomerate in Saudi Arabia, to accelerate Saudi Arabia’s adoption of solar energy. The announcement comes in spite of Saudi Arabia having no formal diplomatic relations with Israel.
The Israeli-Saudi solar venture will be based in Riyadh and will focus on deploying smart renewable energy solutions in Saudi Arabia. Ajlan & Bros Holding will be the majority shareholder. The collaboration will enable local enterprises in Saudi Arabia to transition from fossil fuels to solar energy, supporting their renewable energy goals.
Ajlan & Bros Holding is a prominent conglomerate in the Middle East and North Africa. It has investments in various sectors including water, oil, health care, food security, and mining.
SolarEdge, founded in 2006, aims to make solar energy more accessible and widespread. The company has developed a direct current optimized inverter system, which increases solar power generation while reducing energy costs. With a market capitalization of $13.5 billion, SolarEdge is recognized as one of the most valuable Israeli companies.
Israel and Saudi Arabia do not maintain official diplomatic relations, but there have been covert ties that have somewhat improved recently. Jewish business leaders have been visiting Saudi Arabia to meet with their business and government counterparts. Meanwhile, Saudi Arabia has shown interest in Israel’s technological advancements in the water, energy, defense, and space sectors.
The collaboration with SolarEdge is one of the first publicly known agreements between an Israeli company and a Saudi entity. This announcement follows Israeli Foreign Minister Eli Cohen’s statement about being close to a peace agreement with the Saudis.
US President Joe Biden has also hinted at potential progress in this long-sought deal after months of US officials downplaying the possibility.
Prime Minister Benjamin Netanyahu has been striving for a diplomatic recognition deal with Saudi Arabia, considering it a top priority for his government. He believes that such a deal could lead to the resolution of both the Arab-Israeli conflict and the Israeli-Palestinian conflict.
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