During President Donald Trump’s trip to the Middle East earlier this month, he shuttled between Gulf capitals to announce major economic deals. In Qatar, it was an eye-popping $1.2 trillion economic commitment in trade agreements and direct investment. Saudi Arabia pledged to invest $600 billion in the United States in defense, energy and infrastructure. And in the United Arab Emirates, Trump announced a series of agreements — including one to build Stargate UAE, the largest artificial intelligence campus outside the United States, in partnership with OpenAI and Nvidia — worth more than $200 billion, on top of $1.4 trillion previously committed in U.S. investments.

Missing from the list of deals announced on Trump’s Middle East junket was any kind of similar agreement with Israel, which Trump did not visit on his first major trip abroad since returning to office. Economic ties between the U.S. and Israel are strong; Israel is a larger trading partner to the U.S. than either Saudi Arabia, the UAE or Qatar, and American investors are among the biggest investors in Israeli startups. But the country lacks the liquid financial firepower that is available to the oil-rich Gulf monarchies, which risks placing Israel at a disadvantage in the eyes of an American president who sees the world as a series of business deals. 

“You try not to compete in areas where you have a disadvantage. We have a capital disadvantage. So we should compete where we have an advantage, which is on innovation and technology,” said Michael Eisenberg, who co-founded Aleph, an Israeli VC firm. 

Some Israeli business leaders and innovators are now urging the country to seriously consider adopting a strategy of “economic diplomacy” to place the country more firmly on Trump’s radar. They think that startup founders and venture capitalists stand to serve as Israel’s best ambassadors, better suited to make the economic case for deepening U.S.-Israel ties than the buttoned-up bureaucrats who populate global capitals advancing Israel’s interests.

“Founders are Israel’s best ambassadors. They travel more than diplomats, pitch to the world’s biggest investors and solve real-world problems that transcend borders,” said Jon Medved, the Israel-based CEO of OurCrowd, a global venture investing platform. “Do they have a responsibility to engage in economic diplomacy? I think they already do, whether they realize it or not.” 

Where the Gulf countries have the ability to spend seemingly endless sums of money on American investments and projects to woo Trump, Israel offers “deep tech expertise” and a venue for early stage collaboration that cannot easily be replicated. 

“We’re the lab. The Gulf can be the scale-up market,” Medved continued. “There’s a powerful opportunity for synergy, not just competition.” 

It’s not news to the American government that Israel excels in technology. In 2022, the two countries launched a strategic high-level dialogue on technology as a way to advance cooperation on artificial intelligence, climate change and pandemic preparedness. (The dialogue slowed down after the Oct. 7, 2023, Hamas attacks.) 

Avner Golov, who until 2023 served as the senior director for foreign policy in Israel’s Prime Minister’s Office, thinks the collaboration between the two countries should be formalized with a photo op, like the signing ceremonies Trump participated in during his visit to the Gulf. The U.S.-Israel security memorandum of understanding, which promises Israel $3.3 billion in U.S. security assistance annually, expires in 2028, and Golov thinks the renegotiation of that agreement is an opportunity to strengthen the tech and economic ties between the countries — to put Israel’s tech diplomacy to the test. 

“I envision going to the White House Rose Garden, signing, for the first time, a formal strategic partnership between Israel and America, approved in both Congress and the Israeli Knesset,” Golov told Jewish Insider. Such a deal, as Golov sees it, might also include ways to make it easier for American businesses to operate in Israel. 

Eisenberg, who has invested in major Israeli startup successes such as WeWork and Lemonade, thinks changes to Israel’s “regulatory environment” can help make the sell to American companies and, by extension, Trump. 

“We’re not going to do zero taxes like Dubai, but we need to be attracting more capital here by making our regulatory environment much simpler and lowering our capital gains taxes to be competitive with the United States so that we can bring capital formation vehicles like hedge funds to Israel,” Eisenberg said. 

Of course, many leading tech companies already have large operations in Israel. The chip giant Nvidia announced a $500 million investment in an Israeli AI research data lab in January. In March, Google acquired the Israeli cybersecurity company Wiz for $32 billion, Google’s largest-ever acquisition. Nvidia CEO Jensen Huang and Google President Ruth Porat were with Trump in Saudi Arabia, along with other top CEOs. 

“Many of them have employees in Israel because of our innovation, but we need to build a strategy around attracting them, getting deeper engagement and using them in our attempt to build us into a regional superpower,” added Eisenberg. 

Israeli Prime Minister Benjamin Netanyahu has long touted Israel’s startup ecosystem, but some worry he has not sufficiently tapped into that world to meet the moment, when Trump — whom Netanyahu has always sought to present as a close friend — seeks flashy financial success on the world stage. 

“[Netanyahu] should have realized that in a competition for the affections of a strongman like Trump, Israel had little to offer,” The Atlantic’s Yair Rosenberg wrote this month. 

But the basis of the U.S.-Israel relationship has never been purely about dollars and cents. 

“If we’re going to make sure, ‘Hey, don’t forget about us,’ it’s not about money. It’s about morality and humanity and the purpose of Israel on the world stage,” former U.S. Ambassador to Israel Tom Nides told JI. “Obviously there’s this whole notion that there are a lot of deals to be done. But that’s not how we compete.”