Ackman sees Gaza truce easing Saudi path to Abraham Accords

Milling among the investors crowding the gilded hallways of the Future Investment Initiative conference in Riyadh, hedge fund magnate Bill Ackman expressed confidence that Saudi Arabia is moving closer to establishing formal links with Israel.

Ackman, founder of New York-based Pershing Square Capital Management, told The Circuit on Tuesday that he sees the current ceasefire in Gaza easing concerns in the Middle East about joining the 2020 Abraham Accords that normalized Israel’s ties with the UAE, Bahrain and Morocco.

“I think it’ll be in the relative short term,” Ackman said in an interview at the King Abdulaziz International Conference Center, where some 9,000 registrants are attending the conference. “I think there’s going to be a major peace dividend coming out of recent positive developments in the resolution of the Israeli-Gaza situation.”

Ackman, 59, whose personal fortune is estimated by Bloomberg at $8.4 billion, bought a nearly 5% stake in the Tel Aviv Stock Exchange last year with his wife Neri Oxman. He said he has also invested in Israeli venture capital funds for the last seven years or so.

Ackman was invited to the conference, often referred to as “Davos in the Desert,” to speak on Tuesday’s panel on geoeconomics, sharing the stage with JPMorgan Chase’s Jamie Dimon, BlackRock’s Larry Fink and Qualcomm’s Cristiano Amon. He said he was also meeting with other business people in the Gulf and talking about the potential of Israel’s regional integration.

“The only thing holding it back, in my view, was geopolitical risk,” Ackman said. “Investors don’t like geopolitical risk. They don’t like terrorism. They don’t like uncertainty.”

If conditions continue in a positive direction, Ackman said the Middle East at large will draw more foreign capital, a key goal of Saudi Arabia amid declining oil prices.

“As uncertainty goes down, as terrorists get set back, as peace deals get made, as the Abraham Accords expand, I think I’m very bullish for the region,” he said.

Dina Powell McCormick, meanwhile, an investment banker and former Deputy U.S. National Security Advisor during President Donald Trump’s first term, told the conference during a panel discussion that the Abraham Accords have played an important role in the Middle East’s economic development over the past five years.

The Israeli-Arab agreement also paved the way for a growing coalition of Arab and Muslim states that announced their support for the U.S.-brokered ceasefire in Gaza and joint international efforts to rebuild the wartorn territory, said Powell McCormick, a former senior Goldman Sachs executive who is now Vice Chairman and President of Global Client Services at BDT & MSD Partners, a U.S. merchant bank.

“I think it’s because, in many ways, the seeds were planted… not just by the United States, but over 50 countries, again, from Egypt and Jordan, the Emiratis, the Qataris, the Turks, the Pakistanis,” Powell McCormick continued. “This is remarkable.”

Powell McCormick, 52, who was born in Egypt before her parents moved to Dallas, Tex., said Saudi Arabia and its neighbors are exercising broad global influence on a scale that could not have been foreseen a decade ago.

“It would have been hard to imagine that this kingdom and this region of the world is now the dominant source of capital for innovation, the dominant source of capital for the change that we’re witnessing in every industry, artificial intelligence, biotech, robotics, longevity,” Powell McCormick said.