Israel and the US are planning a $200 million joint quantum fund, possibly in collaboration with the UAE and Saudi Arabia, according to Globes. The fund was proposed by Maj-Gen. (res.) Tamir Hayman, who is now the director at the Institute for National Security Studies. The proposal has been well-received by US lawmakers as well and is gaining momentum.
The proposed fund will have a budget of $200 million, with $100 million from Israel and the US between 2026 and 2030 to fund collaborative projects. The deal includes potential involvement of the UAE and Saudi Arabia, which have the energy infrastructure to make large-scale quantum and AI research possible.
According to Globes, the deal’s goal is to counter and limit Chinese global influence, especially in quantum technology. Harnessing Israel’s prowess in quantum and AI technology could further enhance the US’s global influence, according to the Guardian.
By securing support from the Gulf states, the fund would strengthen the Abraham Accords by drawing the UAE and Saudi Arabia closer to the US-Israel axis through deals bound by promises of quantum and AI innovation.
The deal aligns well with upcoming election timing and complements President Donald Trump's foreign policy history of business deals as a platform for peace, harmony, and stability.
Financing sources
According to the proposal formulated by the INSS and AIQ-Lab (AI & Quantum Sovereignty Lab), founded by Dr. Smadar Itzkovich, which promotes policy in the fields of AI and quantum computing, the legislation could include the use of existing models for joint funding of Israel-US research.
Globes included existing models such as the Israel-US Binational Science Foundation and the Israel-US Science and Technology Foundation. In this same format, the US and Israel will each invest $100 million between 2026 and 2030 in joint commercial ventures with private quantum companies - Israeli and American.
For example, Quantum Source, an Israeli company that is developing technology for implementing photonic quantum computers, could now submit a joint application with US company PsiQuantum, which is currently building the world's largest photonic quantum computer. Together, they could be awarded millions of dollars for developing a joint venture, according to Globes.
Offices for this project would be based in both Tel Aviv and Arlington County, Virginia, according to Globes, and could even tap into budgets from the 2022 US Chips Act.
Diplomatic opportunities
Saudi Arabia's joining of the fund could open Israel and US quantum companies to new investments, potentially resulting in significant diplomatic shifts.
In addition, according to the proposal referenced in Globes, after the establishment of the research center and the introduction of existing Abraham Accords partners, Central Asian countries such as Azerbaijan, Kazakhstan, and Uzbekistan will also be added, and in the longer term - depending on the development of the Abraham Accords - also Saudi Arabia, Kuwait, and even Qatar.
The Geopolitical Angle
According to Globes, Israel must pass export and IP protection laws, specifically regarding China, in order to make this proposal possible. According to Globes, the Lapid government has made this potential project a priority, whereas Netanyahu’s administration is less focused on these provisions.
According to Globes, the quantum initiative gained urgency recently due to Israel’s exclusion from recent US-UAE-Saudi AI agreements. It is viewed as a chance to catch the quantum wave, even after missing the AI train.
This regulatory provision ties into the US strategy to counter Chinese tech ties in the region.
Hadas Lorber, a former senior official in the National Security Council, who leads the INSS project focused on strengthening Israel-US relations, told Globes:
"We are now in the perfect storm in which Trump's US can give Israel partnerships that it may not have been open to in the past - there is a favorable Congress, and regional momentum after the Iran operation, in which the Israeli advantage is clearly visible in the Middle East. The US also now has an interest in embracing the countries of the region to prevent their influence from shifting to the Chinese side of the map.”
The business kick
Trump has been on a business kick in the Middle East since his visit in May. According to the Guardian, the United Arab Emirates and the US signed an agreement to build the largest artificial intelligence campus outside the US.
Globes highlighted Israel’s efforts in the quantum industry. Dr. Smadar Itzkovich told Globes:
"Israel ranks among the five leading countries in the global quantum industry, and its 'density' of experts in Israel is six times higher than in the US. The US understands this and recognizes that there is planning for such legislation ahead of the US midterm elections and the general elections in Israel next year."
Israel is a valuable ally to this network. According to Israel Defense, Israel has nine start-ups that have raised $650 million to date. Experts say Israel’s quantum edge lies in its unique combination of strengths – world-class academic research, a robust tech start-up ecosystem, and its emphasis on defense and security innovation.
This is an advanced geopolitical play to secure US influence in tech worldwide and use Israel to help box out China.
The impact of Trump's presidency
For Israel, this is a critical alliance, with Trump creating a regional geo-technological round table to counter China, Israel needs to be included.
Dr. Ariel Sobelman, a senior researcher at INSS, told Globes that “the connection point to the Gulf and Saudi Arabia is aimed at these points - Israel may have knowhow in AI and a dominant group of startups and leading researchers in the quantum field, but it needs the computing and electricity infrastructure of the Gulf countries - the UAE, Bahrain and in the future Saudi Arabia too.”
The Trump administration is well aware of this; therefore, establishing better relations with the energy suppliers of the Gulf is a strategic move to secure a larger energy supply for the US to drive AI activity.