Israeli Prime Minister Benjamin Netanyahu said that his government would not agree to give Saudi Arabia any concessions that would endanger the country's security in any normalization agreement between the two sides.
In an interview with the financial news site Bloomberg, Netanyahu refused to disclose the potential terms of such an agreement.
He said that striking a diplomatic agreement with Saudi Arabia will bring many opportunities for investors.
Israel's Foreign Minister Eli Cohen said in an interview with the Saudi magazine Elaph magazine that a potential deal would "change the face of the Middle East and the world."
He added that the "Palestinian issue will not be an obstacle to achieving peace, and the current government will take practical steps to improve the Palestinian economy."
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Netanyahu: No concessions to Saudi Arabia that endanger security