The potential for a historic normalization agreement between Israel and Saudi Arabia has fundamentally altered the diplomatic landscape of the Middle East, placing the Palestinian Authority (PA) in a pivotal, yet delicate, position. Unlike the 2020 Abraham Accords, which the PA initially rejected as a "stab in the back," the current Saudi-led formula actively incorporates Palestinian interests as a core pillar of the negotiations. This shift reflects Riyadh's need for domestic and Islamic legitimacy as the custodian of the Two Holy Mosques, ensuring that any deal with Israel is not perceived as an abandonment of the Palestinian cause. For the PA, this process represents a high-stakes opportunity to secure tangible concessions and reassert its relevance amidst growing internal and regional challenges.
The trilateral negotiations involving the United States, Saudi Arabia, and Israel have effectively created a new "Palestinian component" that serves as a prerequisite for Saudi crown prince Mohammed bin Salman. While the 2002 Arab Peace Initiative demanded a full Palestinian state before normalization, the current pragmatic approach focuses on a "credible and irreversible path" toward statehood. This evolving formula has prompted the PA leadership, including key figures like Hussein al-Sheikh, to engage directly with Saudi and American officials to define their specific requirements. By participating in these discussions, the PA aims to avoid the marginalization it experienced during previous regional shifts and to leverage Saudi influence to extract significant concessions from the Israeli government.
Background and Strategic Shift
Historically, the Palestinian leadership maintained a policy of absolute rejection toward any Arab-Israeli normalization that did not follow the establishment of a sovereign Palestinian state. However, the success and expansion of the Abraham Accords demonstrated that the region was moving forward with or without Palestinian consent, leaving the PA in a state of diplomatic isolation. Recognizing this reality, President Mahmoud Abbas and his advisors have pivoted toward a policy of constructive engagement, seeking to shape the "Saudi deal" from within rather than opposing it from the outside. This strategic recalculation is driven by a need to secure the PA's financial survival and to prevent further territorial expansion by Israel in the West Bank.
The involvement of Saudi Arabia provides the PA with a unique level of protection and leverage that other regional actors could not offer. Because Saudi Arabia is the leader of the Arab-Muslim world, its endorsement of a deal carries immense weight, making it difficult for Palestinian rivals like Hamas to characterize the process as a betrayal. Saudi officials have utilized this leverage to demand that Israel provide "significant components" for the Palestinians, which Riyadh insists are necessary to sell the deal to its own population and the wider Islamic world. This dynamic has effectively made the PA a silent partner in a trilateral negotiation that seeks to balance regional security interests with the long-standing national aspirations of the Palestinian people.
Key Facts of the Palestinian Formula
- The PA has requested the transfer of specific territories in the West Bank from Area C (full Israeli control) to Area B or Area A (Palestinian civil or security control).
- A core demand includes the resumption of substantial Saudi financial aid to the PA, which was significantly reduced in 2016 and halted entirely by 2021.
- The PA seeks a formal commitment to a "complete cessation" of Israeli settlement growth and a return to US-brokered negotiations based on the two-state solution.
- Diplomatic requests include the reopening of the United States Consulate in Jerusalem to serve as a dedicated mission to the Palestinian people.
Analysis of PA Motivations and Stakes
The Palestinian Authority’s motivation for joining the normalization court is deeply rooted in its quest for internal legitimacy and survival. Currently, the PA faces a crisis of confidence among its own population, who increasingly view it as ineffective compared to the "resistance" model promoted by Hamas and Islamic Jihad. By securing a massive financial package from Saudi Arabia and tangible territorial gains, the PA hopes to demonstrate that diplomacy and cooperation can still deliver results for the Palestinian people. Furthermore, achieving these goals through a Saudi-led process would significantly strengthen the PA’s standing in the Arab world, positioning it as the sole legitimate representative of Palestinian interests.
From an Israeli perspective, the PA's demands present a complex political challenge for the ruling coalition, particularly regarding territorial transfers and settlement freezes. However, the strategic prize of normalization with Saudi Arabia—an event that would effectively end the Arab-Israeli conflict in its traditional form—is seen by many as worth the political cost. Detailed analysis from the Institute for National Security Studies (INSS) suggests that the "Palestinian package" is no longer a peripheral issue but a central requirement for the Biden administration to secure the deal. This has created a situation where the PA’s survival and the success of Saudi-Israel normalization have become intrinsically linked through American and Saudi diplomatic efforts.
The role of the United States in this formula cannot be overstated, as Washington views the "revitalization" of the Palestinian Authority as essential for regional stability and post-war governance. By integrating the PA into the normalization framework, the US and Saudi Arabia are attempting to create a moderate alternative to the extremism that has plagued the region. This approach is further documented in reports on Saudi-Israel Relations, which highlight the importance of securing Palestinian support to provide the necessary legitimacy for a final agreement. Ultimately, the PA's role is to provide the "Palestinian cover" that allows Riyadh to cross the historic threshold of formal relations with the State of Israel.
Conclusion and Significance for Israel
For Israel, the inclusion of the Palestinian Authority in the Saudi normalization formula represents both a hurdle and a historic opportunity. While the concessions demanded by the PA are politically sensitive, they are part of a broader regional realignment that would solidify a pro-Western, anti-Iran axis from the Persian Gulf to the Mediterranean. The success of this formula would not only transform Israel's regional status but also provide a structured framework for managing the Palestinian issue with the backing of the Arab world's most influential state. Securing this deal would demonstrate that regional integration and security can be achieved through a pragmatic balance of national interests and diplomatic compromise.
In the long term, the PA's active participation in this process could lead to a more stable and professionalized Palestinian leadership, which is a necessary precursor for any sustainable peace. By tying Palestinian development to the success of regional normalization, the "Saudi formula" creates incentives for cooperation over confrontation. For Israel, the significance lies in the potential to achieve a "warm peace" with the leading power in the Sunni world, while simultaneously modernizing the Palestinian political structure under the guidance of moderate regional partners. This strategic evolution remains the most viable path toward a secure and integrated Middle East where Israel is recognized as a permanent and respected sovereign entity.