SolarEdge Technologies Inc., an S&P 500 company based in Israel, is forming a joint venture with a Saudi Arabian firm to develop renewable energy, in a rare business collaboration between two countries that don’t formally recognize each other.
(Bloomberg) — SolarEdge Technologies Inc., an S&P 500 company based in Israel, is forming a joint venture with a Saudi Arabian firm to develop renewable energy, in a rare business collaboration between two countries that don’t formally recognize each other.
The venture between SolarEdge and Ajlan & Bros Holding, a conglomerate, will be established in Riyadh, the Saudi capital, and deploy solar technology in the kingdom, according to a statement from the Israeli company on Monday. Israeli companies have been quietly doing business in Saudi Arabia for years.
The move will help the kingdom progress with its Vision 2030 plan, the statement said. Vision 2030, championed by Crown Prince Mohammed bin Salman, is designed to diversify the kingdom’s economy from oil, with tens of billions of dollars being invested in everything from tourism projects to sports and electric-vehicle manufacturing.
The SolarEdge agreement came a day after Israeli Foreign Minister Eli Cohen talked with US Special Envoy Dan Shapiro about expanding Israel’s ties with countries in the Middle East. The US is keen for Israel to form a diplomatic alliance with Saudi Arabia, a process likely hindered by Prime Minister Benjamin Netanyahu’s deteriorating relations with the Palestinians and his controversial efforts to weaken the power of the judiciary.
Read More: Arab States Sour on Israel in Blow to US Aim of Saudi Peace Pact
SolarEdge shares rose 2% on Monday to $241.46, their biggest jump since mid-July. The company is valued at $13.6 billion. It announces second-quarter results on Tuesday.
(Updates throughout.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.