By: Gastón Saidman

The recent agreement (10.2025) between Israel and Hamas brings hope, although there remains a degree of uncertainty regarding Israel’s underlying motivations and concerns. However, the Israeli mindset always inclined toward life leads many to experience this moment almost like a festive ceremony: for one day, they choose to forget what has happened and force themselves to awaken from the nightmare that has shaken the Middle East over the past two years.

The ceasefire and the return of hostages to their homes mark the beginning of a new phase. Will it be challenging? Yes. But this context invites us to reflect on how an open Middle East, increasingly connected to global markets, could transform the region’s economic and geopolitical landscape. This could activate an unprecedented dynamic of cooperation and competition especially among those aligned with the Abraham Accords.

The Abraham Accords and a Redefined Region

The Abraham Accords represent a significant shift in the regional order. They have not only opened access to new markets—particularly in sectors like security and technology—but also unlocked economic opportunities in investment, tourism, and trade. Politically, the formal establishment of relations between Israel and countries like the United Arab Emirates, Bahrain, Sudan, and Morocco signals the beginning of a new era.

Positive changes are on the horizon, and they will follow their own course. What matters is being present—before, during, and alongside those who will shape the key elements of tomorrow’s global economic landscape.

The Israel-Hamas Agreement: A Pause for Economic Realignment?

We find ourselves at a crossroads: markets are relatively calm, offering a critical moment to plan our next steps—not only as investors and entrepreneurs but, above all, as innovators seeking to play an active role in the region and compete at the highest level.

This does not imply we can afford to be complacent. On the contrary, it’s a call to carefully evaluate emerging opportunities and engage in the process. When regional market success begins to consolidate and become visible, we must already be positioned—not starting from scratch.

Ceasefires in this region often spark a sense of opportunity. Israel, in particular, is seen as a country with a strong economy based on its greatest asset: human capital. Its deeply innovative society has led to transformative developments. A prime example is its pioneering work in desert irrigation technology—solutions that now benefit the world. This is the mindset: to see opportunity where others see obstacles. With this vision, the sky is not the limit—it’s only the beginning.

This agreement could facilitate border stabilization and improve the flow of goods. That would not only strengthen economic cooperation but also enhance humanitarian aid. All of this is possible within a more stable environment—one that fosters investor confidence and operational security.

As previously mentioned, Israel has long been a hub of innovation and startups. In this context, the Palestinian territories could represent a new frontier of opportunity—where entrepreneurs and businesses might contribute to infrastructure development, service delivery, and job creation.

Future regional entrepreneurs will have the chance to collaborate and benefit from projects aimed at preventing social deterioration—especially in Gaza—sharing both the challenges and the economic gains among all stakeholders.

Direct and Indirect Economic Implications

Expanded Regional Cooperation

Within the framework of the Abraham Accords, this new agreement could act as a catalyst for deeper economic and strategic integration with Gulf nations such as the UAE, Bahrain, and Saudi Arabia. While the latter has yet to normalize relations with Israel, it has signaled interest in a more stable and cooperative regional future.

Gulf nations, with their significant financial and strategic capacities, have shown growing interest in fostering regional stability as a prerequisite for sustainable economic development. This is already reflected in joint investment projects in technology, renewable energy, infrastructure, and tourism—many involving cooperation between Israeli and Emirati companies.

A broader cooperative agenda could also include regional logistics corridors, energy integration initiatives (such as cross-border electricity grids or green hydrogen ventures), and shared platforms for technological innovation.

The Strategic Role of Cyprus

In this emerging landscape, Cyprus plays an increasingly important role as a bridge between the Middle East and Europe. Its geographic proximity and strong ties with both Israel and Arab nations make it a natural hub for regional logistics, diplomacy, and energy infrastructure.

Ongoing trilateral cooperation among Israel, Cyprus, and Greece—particularly in the energy sector—has already laid the groundwork for long-term strategic alignment. Projects such as subsea interconnectors and potential gas pipelines linking the Eastern Mediterranean to Europe illustrate how Cyprus can contribute to diversifying export routes, enhancing energy security, and promoting regional interdependence.

Moreover, as a member of the European Union, Cyprus can serve as a conduit for EU-backed development initiatives in Gaza and the West Bank. These could include investment in reconstruction, education, and employment—aligned with European frameworks for peace-building and regional inclusion.

Finally, Cyprus’s neutral diplomatic stance and historical commitment to regional dialogue offer the potential for it to act as a platform for conflict resolution and economic diplomacy—key elements in shaping a stable, prosperous Eastern Mediterranean.

Risks and Challenges

Of course, the path forward is not without challenges. The armistice itself does not eliminate the deeper structural issues: internal political fragility, mutual distrust, and external pressures that could obstruct effective implementation.

In the Middle East, a single misstep can trigger a domino effect—undermining trust and projecting risk to international investors. Yet, history shows that breakthroughs often emerge in precisely such complex contexts—when political will, strategic vision, and committed actors align toward long-term development.

With sufficient effort and perspective, this moment may represent a rare opportunity to build a strong foundation for regional cooperation—one that delivers shared value. The obstacles are real, but so is the potential for transformative progress.

Conclusion

From an economic standpoint, the Israel-Hamas agreement should be seen as a pragmatic opportunity to stabilize a key region—aligned with the broader vision behind the Abraham Accords. The economy can serve as a bridge to peace, provided that all stakeholders maintain a sustained commitment to cooperation, innovation, and effective risk management.

In this evolving equation, Cyprus emerges as a strategic partner—linking the Middle East with Europe and enhancing the region’s ability to pursue lasting peace through connectivity, investment, and shared prosperity.