Daily Kickoff
👋 Good Monday morning!
In today’s Daily Kickoff, we look at what the collapse of Silicon Valley Bank means for startups across the Middle East, and interview “Fauda” actor Itzik Cohen about his leading role in the new Israeli series “The Diplomat.” Also in today’s Daily Kickoff: Sen. Markwayne Mullin, Shlomo Lipetz, Chase Kochand Dr. Miriam Adelson.
The announcement on Friday of the China-brokered restoration of ties between Saudi Arabia and Iran after seven years sent shockwaves through the international community.
But in Israel, the reaction was fairly muted.
“It’s not about us. As much as we love to think that everything is about us, it’s not,” former Knesset member Einat Wilf told JI. “It reflects some major changes. One is that the Biden administration has changed again in the way that it treats the Middle East and especially Saudi, and the Saudis were going to have none of it. In parallel, China has a greater interest in a stable Middle East. As far as China is concerned, an Iran and Saudi that are at each other’s throats is a danger to its oil supply, and it just wanted it over. And [China] stepped in where America wouldn’t, and I think this is where America’s increasingly binary worldview with respect to China is hurting the Middle East.”
Mark Dubowitz, the CEO of the Foundation for Defense of Democracies, called the restored ties “a lose-lose-lose for the U.S., for Israel and maybe ultimately for the Saudis.” But, he added, “It’s a reflection of what I’ve been hearing from the Saudis for a couple of years now, which is the sense that the U.S. doesn’t have their back against Iran, that MBS’s priority is reforming the Saudi economy and Vision 2030,” he said, referring to Saudi Crown Prince and Prime Minister Mohammed bin Salman. “And for that he needs to limit the number of Iranian drone strikes and missile strikes and Houthi strikes on key facilities. He needs calm, he needs stability.”
The Saudi pivot to China, Dubowitz said, came in part from the Biden administration’s position on Iran. “So [Riyadh] began to hedge, and hedging had two components. One was a Chinese component. And the second was an Iranian component. And I think those all came together last week in that announcement.”
The Wall Street Journal reportedthat a China-led Middle East summit is in the works for later this year, which the outlet said underscores the idea “that Beijing sees a central role for itself as a new power broker in the Middle East.”
But could that mean China brokers a normalization deal between Riyadh and Jerusalem? “The two major priorities for the Chinese are continued access to low-priced oil and obviously Chinese influence in what is a very important area of strategic competition with the United States,” Dubowitz explained. “And so Saudi-Israel normalization, if it increases stability, if it ensures continued access to Saudi oil and it keeps prices low, that’s good for China. And if it establishes China as a major player in this region where you need the Chinese in order to broker that deal, then maybe the signing ceremony isn’t on the White House South Lawn — maybe it’s in Beijing’s Forbidden City.”
Wilf described Saudi Arabia as “the Holy Grail” of normalization with Israel. “Because it can speak to the Arab world, because it can speak to the Muslim world,” she explained, “if Saudi signed normalization with Israel, this would be effectively the end of the Arab-Israeli conflict… They know what they’re worth. And they intend to make the most of it.”
China-brokered Saudi-Israeli normalization is possible, Wilf said, but under those circumstances, “Israel will have to chart a path that is a bit more independent. You can have several scenarios when Israel becomes valuable precisely because of its connection with the United States. It will require some pretty sophisticated foreign policy from Israel. And that’s the thing that has happened in recent years. Israeli foreign policy, mostly, especially after ‘73, was tied to America. There was not a lot of sophistication needed. Ever since America generally reduced its footprint in the Middle East, Israel needed more sophisticated foreign policy.”
The bottom line, Dubowitz said, is “don’t buy the spin out of Washington or Jerusalem that it wasn’t a big deal. It was a big deal. And I think both the U.S. and Israel need to start thinking real long and hard about what this means for the counter-Iran strategy and normalization with Saudi, and certainly what is happening domestically in Israel isn’t making it any easier for the Saudis to move forward.”
banking crisis
Silicon Valley Bank’s collapse sends shockwaves through Middle East

The sudden collapse of Silicon Valley Bank in Santa Clara, Calif., reverberated more than 7,000 miles away in the Middle East, where cash-strapped startups struggled to meet their payrolls and local lenders seized the opportunity to help bridge the gap, Jonathan Ferziger and Robert Lakin report for The Circuit. In Israel, where SVB was the lifeblood for many young technology businesses just beginning to generate revenue, company CEOs found locked doors at the California bank’s Tel Aviv branch when its executives failed to respond to their desperate messages.
Signature too: Tel Aviv-based Bank Hapoalim and Israel Discount Bank, meanwhile, circulated word that they could help startups pay immediate bills. Signature Bank, a New York-based lender active in real estate and popular with startups, also collapsed on Sunday. The U.S. Federal Deposit Insurance Corp. announced an emergency bailout program hours later and said it would pay depositors 100% of the money they had in both banks.
An upside: SVB’s demise, the second-largest bank collapse in U.S. history, was less of a disaster in the United Arab Emirates, which promotes itself as a center for germinating technology companies but has fewer startups than Israel. Lenders including Wio Bank, Zand Bank and MBank are ready to pick up the slack for SVB’s ailing customers, said Ryan Lemand, co-founder and CEO of Abu Dhabi-based Neovision Wealth Management. “There’s an upside,” Lemand told The Circuit. “The problem will be solved relatively quickly. Then these banks will onboard them [as customers], said Lemand, who previously worked as a financial regulator and adviser on risk management for the UAE’s federal government.
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