Innovation Diplomacy for a New Regional Framework 

April 29, 2025

By Nave Shachar, Middle East Director, Startup Nation Central 

The Middle East is no longer defined solely by its challenges. It is emerging as a center of global economic opportunity and technological relevance. The events of October 7 created a new sense of urgency and revealed a clear path forward. Partnerships built on innovation and aligned interests are essential. 

Technology is no longer a secondary issue, it has become a strategic priority. Innovation diplomacy has moved from concept to necessity. 

The Abraham Accords Are Built to Last 

The Abraham Accords were rooted in real alignment. Economic growth, national security, and regional stability remain the foundation. These principles still hold, and the partnerships are deepening. 

President Trump played a pivotal role in launching this new era. He reframed diplomacy through mutual value and practical collaboration. The architecture he helped create is expanding, with new channels of engagement forming across sectors and borders. 

The separation between economic cooperation and political strategy is no longer relevant. Innovation now sits at the center of regional engagement. 

A Model for Innovation Diplomacy 

Startup Nation Central launched its innovation diplomacy track during the early days of the Abraham Accords. Our approach is straightforward. We engage with regional partners based on their national goals. We listen to what they need, and we identify how Israeli innovation can deliver. 

This is not about declarations, it is about solving problems together. Whether it’s food systems, climate resilience, or energy transition, these partnerships are designed to produce results. 

Israel’s Innovation Sector Remains a Global Engine 

Despite the challenges of war, the Israeli innovation ecosystem remains resilient and active. According to the 2024 Startup Nation Finder Annual Report

  • $12.5 billion in private investment was raised 
  • 945 investment rounds were completed 
  • 116 mergers and acquisitions took place 
  • $14.1 billion in M&A value was recorded 

These numbers show consistent confidence from global and regional investors, even in sensitive areas like defense technology. A recent investment by a UAE-based entity in an Israeli defense startup reflects a growing willingness to move from interest to action. 

Technology as Strategic Infrastructure 

Innovation is more than an economic engine. It is a foundation for strategic cooperation. The artificial intelligence value chain is a clear example. Israel brings core technology and talent. Regional partners contribute capital, infrastructure, and market access. This creates joint value that reinforces shared priorities. 

This model applies beyond AI. It supports collaboration across sectors like water management, cybersecurity, and healthcare delivery. 

Regional tech coalitions also support national security by reducing reliance on global supply chains that may be disrupted by political friction. For example, proposed tariff policies under a second Trump administration could increase pressure on global tech trade. A strong regional innovation network would create greater resilience and allow for more secure and predictable growth. 

A Region That Matters Globally 

The Middle East is attracting attention not only for its strategic location but for its economic potential. At the Future Investment Initiative in Riyadh, global investors came with intent. The region’s demographics, capital, and ambition are drawing serious interest. 

Infrastructure projects like the India-Middle East-Europe Corridor (IMEC) are reshaping trade flows. During the war, routes through Saudi Arabia and Israel played a vital role in supply continuity. These pathways are strategic assets, supporting regional integration and serving the interests of partners including the United States. 

Aligning on Defense Innovation 

The defense technology sector is evolving. The war in Israel and the conflict in Ukraine have both accelerated demand for smarter systems, faster adaptation, and better coordination. 

Israel is already playing a central role, but more can be done to align with U.S. and European stakeholders. We need greater speed, trust, and structure in how we collaborate. This is a key part of Startup Nation Central’s mission. 

We are a nonprofit connector. We help governments, corporations, and investors navigate Israel’s tech ecosystem. Our Finder platform tracks thousands of startups and sector trends in real time, offering visibility and access to support fast, focused engagement. 

The Moment to Move 

Innovation diplomacy is underway. The frameworks are established. The partnerships are growing. Regional dynamics are shifting. This is the time to act with intention. We have the opportunity to build a new economic and security architecture based on shared innovation goals. 

Startup Nation Central is ready to help move that forward. Our role is to turn interest into collaboration and opportunity into execution. The day after is coming, the future is already in progress.