TEL AVIV, Israel – While regulators scrutinize a bid from the United Arab Emirates for Israel’s largest insurance company, the Gulf state will be looking to broaden its interests in the Israeli financial services industry, Minister of State for Foreign Trade Thani Al Zeyoudi told The Circuit.

Al Zeyoudi said the offer last week from a consortium led by Abu Dhabi-based ADQ for a controlling stake in Israel’s Phoenix Group was “just another signal that relations are going to grow.” Israeli insurers, financial services companies and fintech startups are among the most attractive candidates for partnerships and acquisitions, he said.

In a video interview from his office in Abu Dhabi, the UAE’s capital, Al Zeyoudi also said he expects ties between the two countries to strengthen under returning Israeli Prime Minister Benjamin Netanyahu. He said the free-trade agreement that the UAE and Israel ratified on Dec. 11 would likely reach its goal of generating an annual $10 billion in bilateral economic activity by 2026, two years ahead of the ministry’s earlier projections. Two years after the UAE, Bahrain, Morocco and Sudan signed agreements to normalize relations with Israel, he said more Arab countries are getting ready to engage with the Jewish state.

“There is a growing appetite across the region for collaboration and cooperation,” Al Zeyoudi said. “There are now six countries in the Arab world that have recognized Israel and the benefits of these ties will accumulate as trade flows increase. Obviously, we cannot decide for other countries because it’s [a matter of] sovereign rights. But I’m sure through these engagements and the results from our economic and bilateral trade, it’s a signal to everyone how important and how powerful this cooperation is.”

In his own efforts to understand the Israeli financial services market, Al Zeyoudi said he developed a warm relationship with Samer Haj-Yehia, chairman of Bank Leumi, Israel’s largest lender. Haj-Yehia, an Arab citizen of Israel, was a surprise speaker in October at the mammoth Future Investment Initiative conference in Saudi Arabia, even though the two countries do not have diplomatic relations. Al Zeyoudi first met the banker during a meeting with Israeli business leaders in Dubai on Sept. 15, 2020, the day the Abraham Accords were signed in Washington. “Since then, the relationship is very close with him,” Al Zeyoudi said. Haj-Yehia, who also spoke at conferences in the UAE last month, acknowledged through a Leumi spokesman that he has met with the Emirati minister and declined to comment further.

Al Zeyoudi, 40, who was previously minister of climate change and the environment, studied at the University of Tulsa in Oklahoma for a bachelor’s degree in petroleum engineering. He earned an MBA at the New York Institute of Technology and later went to the SKEMA Business School in Lille, France, for a PhD in strategy, program and project management.

In the insurance deal, Al Zeyoudi said ADQ, a holding company owned by the Abu Dhabi emirate, is prepared to confront concerns expressed in Israel about foreign control of Phoenix, the largest manager of employee pension funds. The investment group it leads signed a term sheet last week with Phoenix’s controlling shareholders, U.S. investment firms Centerbridge Partners and Gallatin Point Capital, to buy between 25-30% of the company’s shares for as much as $800 million.

“It’s all been studied very well and thoroughly from both sides,” he said. “No deals will be signed without the full picture [being] put on the table, being discussed, being tackled, and then we move on to the next level.”

The Marker, an Israeli financial newspaper, called the proposed sale “an irresponsible and unprecedented act of folly” because it gives the UAE too much power over the pension savings of Israeli citizens. A 2017 bid by China’s Fujian Yango Group to buy control of Phoenix was withdrawn after it was rejected by Israel’s Capital Market, Insurance and Savings Authority.

If ADQ’s offer is accepted by the regulator, the deal would be one of the biggest between the UAE and Israel since the Abu Dhabi sovereign wealth fund Mubadala bought a 22% stake in an offshore Israeli natural gas field last year for $1 billion.

“It probably won’t be approved easily and it won’t be a quick decision,” said Nimrod Goren, president of Mitvim, the Israeli Institute for Regional Foreign Policies, and a senior fellow at the Middle East Institute in Washington. “There will be attempts to put all sorts of safeguards around it,” he told The Circuit.

Regarding Netanyahu’s comeback, Al Zeyoudi said the UAE has grown used to Israel’s frequent government transitions and doesn’t expect political changes to interrupt growth in trade between the two countries. Some Israeli investors have expressed concern that cabinet members in Netanyahu’s proposed government who want to annex the West Bank will reignite conflict with the Palestinians.

”Believe me, this will not affect the economy because everyone wants the numbers to grow,” Al Zeyoudi said. Netanyahu “was part of the initiation of the Abraham Accords and I’m sure he will make sure of its success.”

In the interview, Al Zeyoudi touched on how the collapse of FTX has affected the UAE’s efforts to promote itself as a world center for cryptocurrency trading and research.

“Obviously there’s concern when a high-profile business appears to have violated its customers’ trust in this way,” he said. “It offers a clear signal about the need for regulations, consumer protections, proper law and international conventions in the sphere.”

Given his experience as environment minister and a previous post as the UAE’s representative to the International Renewable Energy Agency (IRENA), which is based in Abu Dhabi, Al Zeyoudi said he’s looking forward to next year, when his country plays host to the U.N.’s annual climate change conference, COP28.

Beyond his desire to showcase cooperation between government and private industry in converting to sustainable energy sources, Al Zeyoudi said the UAE will also highlight the deal it brokered in which Jordan will provide solar energy to Israel in exchange for water from an Israeli desalination plant on the Mediterranean. The three sides signed a memorandum of understanding last month at the COP27 conference in Sharm el-Sheikh, Egypt.

“We’re looking forward to bringing the world here,” he said. “Sustainability is embedded with us as a nation. We have diversified our economy and diversified our energy mix. This is the story that we want to bring to the table, to discuss the real impact and the practical actions that we have taken on the ground.”

Mubadala, the Abu Dhabi-based sovereign wealth fund that manages more than $280 billion in assets, placed one of its most senior executives, Waleed Al Mokarrab, in charge of the unit that handles interests in the UAE, including projects with Israel.

Al Mokarrab, who this week was named interim CEO of Mubadala’s UAE Investments platform, will take over for Musabbeh Al Kaabi, who next month will move to the Abu Dhabi National Oil Company (ADNOC) to head its newly established Low Carbon Solutions & International Growth division, the company said in a statement.

As Mubadala’s deputy group CEO, Al Mokarrab also served as deputy CEO of the investments platform during a period in which UAE and Israel normalized diplomatic relations under the September 2020 Abraham Accords. He supervised the Mubadala team that led some of the Gulf state’s most prominent Israeli investments, among them the 22% stake Mubadala Petroleum bought last year in Israel’s Tamar natural gas field, off its Mediterranean coast. The pumping operation at Tamar is run by Chevron Oil Co., the second-largest U.S. energy company, which owns a 25% stake in the field.

Mubadala distributed $20 million last year to six Israeli venture capital funds – Mangrove Capital Partners, Entrée Capital, Aleph Capital, Viola Ventures, Pitango and MizMaa – to invest in promising startups, according to the Wall Street Journal. All told, Mubadala’s investments in Israeli tech companies have amounted to $100 million, the Wall Street Journal reported in January.

Trade between Israel and the UAE reached $1.4 billion during the first three quarters of 2022, already beating the $1.2 billion posted in the previous year. After signing a free-trade agreement in May, both countries predicted that the volume would reach $10 billion within five years.

Visiting Abu Dhabi this week, Israeli President Isaac Herzog said his country’s ties with the UAE “took off so beautifully” in 2020 and “now we need to reach cruising altitude, meaning upgrading the relationship even further.” UAE President Sheikh Mohammed Bin Zayed responded, “This is a new relationship and we are trying to build a very strong bridge between our two countries.”

As deputy group CEO, Al Mokarrab has “strategic oversight of the company’s broad investment portfolio and special projects at the group level,” according to the company’s website. The UAE Investments platform is “Mubadala’s vehicle contributing to accelerate the transformation of the UAE’s economy by building homegrown world class champions, fostering vibrant industrial and commercial clusters, and engaging with global partners,” the website says.

Al Mokarrab holds a master’s degree in public policy from Harvard University and a bachelor’s degree in foreign service from Georgetown University. He is a board member at the Cleveland Clinic, one of the top-rated U.S. hospitals, and chairman of its branch in Abu Dhabi.

GOLAN HEIGHTS – It’s not very often in Israel that you wake up to the sight of more than a dozen gleaming Ferraris, but then again, there aren’t too many places far enough from the country’s bustling center to warrant a serious road trip for the Italian power rides – or exclusive enough to draw in the owners of such luxury.

That’s why, on a recent weekday morning, the Ferrari Owners Club of Israel roared onto the grounds of the Pereh Hotel – the year-and-a-half-old luxury resort that sits quietly tucked away on the majestic Golan Heights – and parked their colorful cars for a rich and pampering breakfast in the hotel’s sweet-tasting Rouge restaurant. 

With sweeping views of the Galilee, the Pereh Mountain Resort sits on an expansive plot of Israel’s most northern plateau. Far from the country’s obvious tourist spots in Jerusalem or Tel Aviv, Pereh, which literally means wild in Hebrew, captures the raw and thorny beauty of the Golan Heights, while at the same time offering a tranquility that puts visitors immediately at one with nature.

It also captures a unique slice of history for Israel in particular and the broader region in general, with the hotel’s owner and an array of local designers working hard to preserve the past, while at the same time carefully adding a new layer of comfort and opulence.

In fact, sometimes it is hard to imagine, among the serenity and luxury, that this was once the scene of brutal conflict, wars and a geopolitical, colonial agreement that ultimately shaped the current Middle East. 

Pereh stands along the old Haifa-Damascus Road at the site of what is known as the Upper or French Customs House. It was here in 1916 that the British and French diplomats, Mark Sykes and François Georges-Picot, signed a secret treaty at the end of World War I carving up the former Ottoman Empire to create the borders of the countries we know today: Lebanon, Syria, Iraq and what was British Mandated Palestine, now Jordan, Israel and the West Bank.

At the heart of the sprawling property, inside a ragged building that remains largely untouched, is a rudimentary museum paying homage to this game-changing agreement and to the creation of the hotel that now sits here. 

An antique map with the demarcation lines and the original colonial contract hang without commentary high on scorched and peeling walls alongside black-and-white portraits of Sykes and Picot, as well as an ominous photograph of the handshake that essentially sealed the fate of the entire Middle East.

Nearby is a color photograph of Leo Glaser, Pereh’s founder and owner. A defense and security consultant, Glaser apparently became enchanted with the Golan Heights as a teenager in his native Buenos Aires after hearing the news that the notorious Israeli spy Eli Cohen had been hanged in Damascus, Syria. Cohen – who succeeded in infiltrating to the highest levels of the Syrian military before his execution in 1965 – quickly became Glaser’s hero and the impetus for his subsequent aliyah, and later a long military and secret service career.

It was also what pushed Glaser to purchase this parcel of land in 2014. According to legend, Cohen had succeeded in convincing the Syrian army to plant eucalyptus trees at army bases across the Golan, which was then in Syrian hands; he said it would keep the soldiers shielded from the sun. However, it is believed that knowing the location of these trees is what assisted the Israel Defense Forces in identifying Syrian military targets, allowing it to capture the area during the 1967 Six-Day war. 

Israel formally annexed the Golan Heights in 1981, a move still not accepted by most of the world, although the U.S., under former President Donald Trump, recognized Israel’s sovereignty there in a contentious 2019 declaration. 

A cluster of Cohen’s eucalyptus trees, as well as several abandoned Syrian army bunkers beneath them, now stand on the horizon not far from the young grapefruit, pomelo and lemon trees in Pereh’s newly planted garden. Below their swaying branches is a small plaque that stands as a tribute to Cohen, whose remains are still said to be buried somewhere in Damascus.

“It was Cohen’s story that prompted Glaser to make aliyah and eventually buy this land,” Pereh’s general manager, Neri Eldar, tells The Circuit as we tour the hotel and the grounds.

Eldar explained that Glaser’s rough plan to turn it into a hotel was slowed by the process of clearing and cleaning up the abandoned and crumbling structures, removing leftover landmines and navigating the snake-filled, booby-trapped bunkers. It took Glaser nine years to restore the Bauhaus buildings that still stand here, remove the war debris and reimagine the wild, often hostile Golan landscape into a luxury resort.

With the help of investors, he finally opened the doors to Pereh in June 2021.

“The vibe here is very much connected to the natural surroundings,” said Eldar, describing how the hotel aims to mix history, nature and tranquility, with luxury and exclusivity. 

“It’s an homage to nature,” she said. 

A short stay at Pereh is a uniquely pleasurable experience. From the moment of arrival at the grand metal gates to the well-shaded and welcoming courtyard, replete with a fire pit and seating area, the resort is refreshing and inspiring.

Two of the original French buildings have been finely restored to contain the more exclusive rooftop studios and garden suites. Two new constructions with an additional 22 rooms – a mix of garden and balcony accommodations – surround a tranquil infinity pool and open-air whirlpool.

Each room combines locally found, natural materials – think recycled wood, iron and stone – in its design. Discarded Syrian army beds have been reimagined into lounging chairs, the moody basalt rock found scattered across the Golan has been reused for flooring, walling and other detailed decoration. Also used to decorate the hotel’s walls inside and out are local and international artwork, many incorporating organic materials and themes. 

Rooms at the hotel start at $650 per night for two persons, bed and breakfast; and from $890 on weekends and holidays.

In a low, stand-alone building that was once a horse stable sits the cozy reception area, which also features a well-stocked bar and, below, a wine cellar offering expertly presented tastings of boutique wines from Israeli vineyards. 

Another of the newer buildings houses the spa, which offers an array of treatments by healers from the surrounding Druze villages, and the Rouge restaurant, which takes advantage of the local farms and their produce to provide a classy and delicious array of meals, including a modest but mouthwatering breakfast.

While it is the attention to such detail that has made Pereh now one of Israel’s most sought-after resorts – it was recently featured in the premier travel magazine Conde Nast, which touted the Galilee as one of the best destinations for 2023 – for many the resort’s intrigue is its wildly beautiful and remote location.

“In a country so condensed like Israel, there is a sense of space here,” said Eldar. “This is a place where you can really breathe.”

The writer was a guest of the Pereh Mountain Resort.

Israel has no diplomatic ties with Qatar, and its national soccer team didn’t qualify for the 2022 World Cup. That won’t stop thousands of Israel fans from pouring into the oil-rich Gulf state this week to join the frenzied crowds at the most-watched sporting event on earth.

It wasn’t until 10 days before the opening match between Qatar and Ecuador, set for Nov. 20, that world soccer’s ruling body, known as FIFA, worked out a plan for direct flights between Israel and Qatar that satisfied political and security leaders in both countries. By then, most Israelis with tickets to the nearly monthlong tournament had booked flights with layovers in third countries.

While Israelis are barred by statute from entry into Qatar, the country agreed to honor Israeli passports as a condition for the highly sought rights to host the World Cup. Still, many Israelis, generally known for their boisterous character, say they’ll try to keep things low-key at the games.

“The vibe is to go and enjoy the football and not try to stand out or anything,” Elon Grubman, a 32-year-old Israeli born in Brazil, told The Circuit.

When FIFA finally announced the agreement for direct charter flights on Nov. 10, Israeli Prime Minister Yair Lapid hailed the move as “great news for football fans and for all Israelis,” adding that it was the result of “hard work over the course of many months.” Israel will also be allowed to open a temporary consular office to assist fans with lost passports and medical emergencies.

In expressing his “delight” at solving the visa problem, FIFA President Gianni Infantino also announced that the deal meant “Israelis and Palestinians will be able to fly together and enjoy football together.” Given the tight security protocols that Israel has practiced for decades in restricting Palestinian travelers through Ben Gurion International Airport, it’s unclear whether such joint flights will materialize. Like the Israelis, though, most Palestinians didn’t wait to book their flights.

Walid Jouda, a resident of the Gaza Strip, was standing in line yesterday afternoon at the heavily guarded southern border of the coastal enclave, waiting for permission to enter Egypt and fly to Doha through Cairo.

“I’m a football addict so seeing the matches live in Qatar is going to be amazing,” said Jouda, 35, an information technology administrator for a United Nations agency in Gaza City,  who is rooting for Argentina. “Maybe one day Palestine will qualify for the World Cup, but that’s still a dream.”

Though Israel and Qatar have never established full diplomatic ties, they have worked together publicly for more than two decades. In the late 1990s, Israel operated a trade liaison office in Doha until tensions between Israelis and Palestinians led Qatar to shut it down. Israel allows Qatari officials to travel through its territory and enter the Gaza Strip, where they have for years mediated between Israel and Hamas, the militant Islamist group that governs the territory.

Tickets to the matches and accommodation in Qatar or neighboring countries don’t come cheap. Matan Peled, a manager at Israel’s ISSTA travel agency, said three-night packages that include two soccer matches were selling for $2,000 to $3,500 a person, depending on the hotel. One advantage to Qatar’s small size, he said, is the close proximity of all the new stadiums that were built for the World Cup.

“It’s like having eight stadiums in Tel Aviv,” Peled told The Circuit. “All the teams are in the same area, all the fan zones are close to one another.”

With no Israeli team in the tournament, 42-year-old Ronen Rotem said he doesn’t care much who wins. “I’ve never been to a football match in my life,” he said. “I’m only going because it’s a unique opportunity to visit Qatar.”

From lab-cultured milk to hydrogen-based energy generation, Israelis sought to share expertise in desert agriculture, desalination and food security with new Arab partners at the United Nations climate change summit and establish alliances across the Middle East and North Africa.

The campaign was led by Israeli President Isaac Herzog, who said cooperation would lead to “regional climate resilience,” in a Nov. 7 address to the COP27 conference in Sharm el-Sheikh, Egypt. A nonprofit industry group, Start-Up Nation Central, sought to foster connections with Bahrain, the United Arab Emirates, Morocco and other countries that have signed peace agreements or normalized relations with Israel through an initiative it dubbed the MENA Alliance for Climate Innovation.

“We want to create a business-focused framework with partners from the region to connect startups with investors and corporations, and to work together to develop solutions addressing shared climate challenges,” Yariv Becher, Start-Up Nation Central’s vice president for innovation diplomacy, told The Circuit from Sharm el-Sheikh. “We came to COP27 to move things forward.”

Israel, which has the third-largest number of startups per capita in the world, has developed an international reputation for the quality of its research in desalination and desert agriculture. That has created natural linkages with its new allies in the world’s driest region, which extends from the Arabian desert to the Sahara. Israeli companies have developed partnerships in the UAE and Bahrain that enable them to do business in Saudi Arabia and other countries that don’t have formal diplomatic ties with the Jewish state.

Warning that the region is “on the brink of catastrophe,” Herzog laid out a framework for regional cooperation in addressing climate challenges.

“Here in Sharm el-Sheikh, I wish to reiterate the State of Israel’s solid commitments to achieving net zero carbon emissions and to transitioning from fossil fuels to renewable energy by 2050,” the president said. “But Israel is prepared to assume far greater responsibility,” he added. “Israel is prepared to lead the effort towards regional climate resilience – I intend to spearhead the development of what I term a Renewable Middle East, a regional ecosystem of sustainable peace.”

In the Israeli pavilion at the conference, 10 startups promoted their technologies: Aleph Farms, which produces meat from animal cells; Beewise, which develops robot-controlled beehives; GenCell, which generates energy from hydrogen and ammonia; Groundwork BioAg, which produces inoculants for commercial agriculture; H2Pro, which produces hydrogen-based energy; Home BioGas, which reduces cooking gas from household waste; Remilk, which produces laboratory-cultured milk; Tomorrow.io, which develops weather forecasting technology; UBQ Materials, which turns household waste into a thermoplastic product; and Wiliot, which reduces greenhouse gas emissions from production lines.

Underlining the region’s concern about climate change, next year’s conference, COP28, will be held in the United Arab Emirates, whose president, Sheikh Mohamed bin Zayed Al Nahyan, pledged the country’s dedication to renewable energy even as it stands as the world’s seventh-largest oil producer.

“Our world is facing complex challenges, most important of which is climate change, which now affects the world’s stability and security – including food security… We have only one planet, and with that in mind, it is imperative that we partner and work together in a spirit of determination and optimism to address this common challenge through climate action,” he said.

Also at the conference, cabinet ministers from Israel, Jordan and the UAE signed a memorandum of understanding that lays the groundwork for creating solar energy fields in Jordan. The three-way agreement will enable Jordan to sell solar power from the solar field built by an Emirati firm, while Israel will sell desalinated water to Jordan from a site that will be built on the Mediterranean coast. The MOU was signed on Nov. 8 by Esawi Freij, Israel’s outgoing minister for regional cooperation; Mohammad Al Najjar, Jordan’s minister of water and irrigation; and the UAE’s Climate Change and Environment Minister Mariam Al Mheiri.

RIYADH, Saudi Arabia — It sounds counterintuitive, even like the start of a gag: an Israeli tech entrepreneur comes to an Arab desert kingdom that is the largest oil producer in the Middle East, and whose entire economy runs on crude, and he’s hawking zero-emission e-trucks.

But Asher Bennett, the brother of former Israeli Prime Minister Naftali Bennett and the founder of the London-based e-truck maker Tevva Motors, may be looking down the road clear-eyed and he may just have the right vehicle, and the right technology, at the right time. Even Saudi Arabia is setting new environmental standards to reduce reliance on fossil fuels.

“There’s a lot of interest in the Gulf for our technologies, so I’m here from time to time,” Bennett told The Circuit on the second day of the Future Investment Initiative conference, often called “Davos in the Desert” because it’s patterned after the annual World Economic Forum event in Davos, Switzerland. “I was invited here last year and it was an eye-opener,” he said in an interview at the King Abdulaziz Convention Center, the site of the conference here in the Saudi capital.

Israeli companies are increasingly being allowed to operate in the Saudi kingdom despite the fact that it has not joined the 2020 Abraham Accords, which normalized diplomatic relations with the United Arab Emirates, Bahrain, Morocco and Sudan. Like Bennett, who has American parents, many Israelis are dual citizens and face few restrictions on entering the country. In other cases, Saudi officials have granted special visas to admit Israelis, particularly tech executives, without a second nationality.

At least four Israelis were invited to speak at this week’s conference, including Samer Haj Yehia, chairman of Bank Leumi and an Arab citizen of Israel; and U.S.-born Jonathan Medved, founder and CEO of the venture capital investing platform OurCrowd.

The new unofficial policy toward Israelis reflects the drive by Crown Prince Mohammed bin Salman, recently appointed prime minister, to overhaul the country’s economy and wean it off dependence on oil. Known as MBS, the prince has in the past expressed admiration for Israel’s tech industry and said he sees Israel as a “potential ally.” Still, the country adheres to the Arab League position of not establishing official ties with Israel until its conflict with the Palestinians is resolved.

Bennett, 53, said he developed an interest in e-vehicles through his service as a naval officer on an Israeli submarine, which was propelled by batteries attached to a large electric motor. Unlike other successful Israeli companies such as Mobileye, the maker of sophisticated navigation systems and software for self-driving cars that was bought by Intel for $15 billion, Tevva builds vehicles, he said.

“I’m the Israeli tech entrepreneur who figured out the one business step that we’re not good at in Israel and that’s automotive, the hardware side,” he said. “We don’t build cars in Israel, we don’t teach the engineering side in Israel, so I moved to the U.K.”

Tevva, which developed a dual-motor system that includes a hydrogen fuel cell to extend the vehicle’s range, produced a small fleet of trucks for the UPS package delivery service in London. “The average car drives one to two hours a day where the average truck goes out for eight, nine or 10 hours a day,” Bennett said. “Batteries alone don’t do it, so we mix batteries with hydrogen fuel cells. We can go much farther but also make it more economical.”

Tevva, which means nature in Hebrew, has raised more than $90 million in investment, including a $57 million funding round that closed in November 2021. Bennett declined to disclose the total amount. He said investors come from Europe, the U.S., India and the Gulf.

ZICHRON YAAKOV, Israel – Guests arriving at the Elma Arts Complex and Luxury Hotel in this hilltop town nestled into the side of Mount Carmel will likely be struck by the light-filled lobby or the striking array of artwork that fills every wall and every corner. They’ll also be taken by the sweeping views of Israel’s majestic coastline, its sharp blue skies dotted with graceful paragliders, its lush green edged with pink bougainvillea.

Yet it is the story behind the building and of how it became one of Israel’s most exquisite lodgings that is perhaps most enthralling.

And it is all those elements pulled together that make Elma such a special place.

While every building might have its own unique back story, few have a history like the Elma. Tucked up high on the side of Mount Carmel, gazing over the fisheries of Kibbutz Maayan Tzvi and the picturesque stretch of beach known as Dor, the stacked whitewashed structure not only tells the story of Israel’s socialist origins, it also spotlights the inevitable clash as the country began embracing its capitalist present.

Add to that mix an indomitable scion of a notable Zionist family and a family of prize-winning Israeli architects, and Elma captures not only hearts but also minds of hotel-goers even during the shortest of stays.

Its story begins in 1951 with Israel’s passing of a national law requiring that all workers receive a weeklong vacation once a year. Based on that law, the Histadrut Labor Federation, the General Federation of Workers in Israel, opened wellness retreats around the country affording its members a short respite from work and daily life. One of those places was the Mivtachim Sanitarium, which was dedicated in 1968 and today forms the main body of the Elma hotel.  

Designed by renowned Israeli architect Yaakov Rechter, who received the Israel Prize in architecture in 1972 for the flowing design that blends with the rolling mountaintop, the complex reflects the 1960s Brutalist style, as well as many of his other iconic structures in Israel – the Tel Aviv Museum of Art, the Cameri Theater and the Atarim Square.

Throughout the 1970s and through the 1980s, the complex housed workers for short breaks, hosting some of the country’s most iconic leaders such as former Prime Ministers David Ben-Gurion and Golda Meir. By the mid-’80s, however, Israelis had begun to seek family-style vacations and preferred resorts in more exotic places such as Eilat or Tiberias. The complex was frequently used as a convention center for large company events during the 1990s, until it was shuttered completely in the early 2000s.

In 2004, Lily Elstein, a then 75-year-old patron of Israeli arts and culture who hails from one of the country’s founding families, outbid and outmaneuvered fierce real estate developers vying for one of the country’s most picturesque spots to replace the historic compound with a luxury residential neighborhood. Incredibly, the Mivtachim Sanitarium, which had stood as an icon of Israel’s socialist days on the side of Mount Carmel, was not listed as a historical building or protected by the state.  

Determined to see the complex preserved in all its glory, Elstein, whose late husband Moshe Elstein (grandson of Yoel Moshe Solomon) founded Teva Pharmaceuticals, hired Rechter’s son Amnon Rechter, and hotel architect Rani Ziss to ensure the building was renovated to its original grandeur.

The upgrade took more than 10 years to complete, with the architects working to preserve the original design, including the floors and airy interior, while adding modern touches such as high-tech infrastructure, creating larger rooms and building a new, more accessible, wing. The team also replaced the old entertainment hall – where patrons sent by the worker’s union enjoyed watching movies – with a state-of-the-art acoustic theater replete with a 1,414-tube organ and two grand pianos.

When the new Elma hotel finally opened in 2015, Elstein, now 91, relocated to the site, bringing her personal art collection, including specially commissioned works, to the hotel.

The bright, sun-filled lobby that first greets visitors is dominated by a huge marble sculpture depicting a man and a woman pushing a rock. Created by Israeli sculptor Sigalit Landau, one of Elstein’s patrons, the artwork is a rendering of Sisyphus, the figure from Greek mythology who cheated death twice but was eventually cursed with the eternal punishment of pushing a boulder up a hill. 

More of Landau’s work, as well as installations by multiple other artists, create a vibrant art exhibition that heightens the senses and inspires. Inside, the hallways leading to the modern and well-designed rooms are filled with engaging abstract paintings and photography. Outside, the extensive gardens and terraces are also dotted with sculptures and offer glorious panoramic views of the coastal plain.

The original outdoor swimming pool has been refurbished and an adjacent café offers a range of cocktails, foods and other beverages. Beside it is a newly built indoor pool and spa facility with a variety of pampering and wellness services on offer.

And just a word about the food: Breakfast is included and, like with many other aspects of this hotel, is a carefully thought-out affair going above and beyond the standard Israeli hotel buffet – extensive salads line the counter and nearby chef stations offer cooked dishes. The kosher kitchen also caters dinner options for an additional price.

While it is the modern touches that make a stay at Elma both comfortable and luxurious, it is the unique history still lingering in the air that makes it a special experience. 

The writer was a guest of the Elma Arts Complex and Luxury Hotel.