Finance Minister Smotrich apologizes for insulting Saudi Arabia while dismissing ‘Palestine’ recognition in exchange for peace

Israeli Finance Minister Bezalel Smotrich was forced to apologize on Thursday, after he mocked Saudi Arabia while dismissing the possibility of establishing a Palestinian state in exchange for normalization with the kingdom.

Speaking at a conference, Smotrich said, “Sovereignty is the test point. If Saudi Arabia tells us normalization in exchange for a Palestinian state – friends, no thank you, keep riding camels in the Saudi desert.”

The remark drew no official response from Saudi Arabia but was sharply condemned by Israeli opposition leaders.

Israel’s Channel 12 News quoted a member of the Saudi royal family saying, “We don't care about the nonsense of Smotrich and [National Security Minister Itamar] Ben Gvir; we don't see them as normal people whose words are taken seriously. We care about facts.”

“Normalization will not happen during the period of an extreme right-wing government that does not recognize the rights of the Palestinian people. In the future, when a government is established that believes in sustainable peace, in a two-state solution, and in the rights of the Palestinian people, there will be normalization and true peace in the region,” the Saudi official said.

Following a statement of apology from Smotrich, Kan 11 News' Arab Desk chief, Roi Kais, said it was “possible that the Saudis transmitted messages about this issue via Washington to Israel, and that is what made Smotrich apologize.”

“My unplanned and unfortunate remark about Saudi Arabia was indeed out of place, and I regret it,” Smotrich said in a video statement late on Thursday before continuing. “But I will not accept hypocrisy. Just as I do not wish to offend the Saudis, I expect them not to offend me or us. Anyone who denies our deep, living connection to the homeland in Judea and Samaria harms us. Those who try to unilaterally force us to tear apart the Land of Israel, divide it, and create a terrorist state that would endanger our existence and future – harm us. All these moves that Saudi Arabia has recently been promoting are far more offensive than one unplanned and unfortunate sentence,” he added.

האמירה שלי על סעודיה היתה בהחלט לא מוצלחת ואני מיצר על העלבון שהיא גרמה.

עם זאת ובמקביל אני מצפה מהסעודים לא לפגוע בנו ולא להתכחש למורשת, למסורת ולזכויות של העם היהודי לחבלי מולדתו ההיסטוריים ביהודה ושומרון ולכונן איתנו שלום אמת. pic.twitter.com/2gHX31Gw79

— בצלאל סמוטריץ' (@bezalelsm) October 23, 2025

The Saudi Kingdom has long stated that a potential normalization of relations with Israel was dependent upon Israel’s recognition of a Palestinian state.

After the ceasefire in Gaza, reports indicated that the Trump administration was renewing its efforts to reach a Saudi-U.S. defense deal that would include the kingdom’s accession to the Abraham Accords.

Saudi Crown Prince and de facto ruler, Mohammed bin Salman (MBS), is set to visit the White House next month, and these issues are expected to be important topics of discussion.

In addition, the kingdom sharply criticized Wednesday’s Knesset vote advancing two bills calling for Israeli annexation in Judea and Samaria, despite opposition from Prime Minister Benjamin Netanyahu, who reportedly sought to avoid offending the United States – and possibly Saudi Arabia.

“The kingdom stresses its complete rejection of all settlements and expansionist violations perpetrated by the Israeli occupation authorities,” the Saudi Foreign Ministry stated on Thursday. “The kingdom reiterates its support for the inherent and historical right of the Palestinian people to establish their independent state on the 1967 borders with East Jerusalem as its capital.”

لأصدقائنا في المملكة العربية السعودية وفي الشرق الأوسط، سموتريتش لا يمثّل دولة إسرائيل

— יאיר לפיד - Yair Lapid (@yairlapid) October 23, 2025

Israeli opposition Leader Yair Lapid, who voted for the annexation bills, blasted Smotrich for his comments.

He demanded an apology, saying, “Instead of trying to promote agreements that would change the face of the Middle East, members of this government speak like the last of the trolls, with harmful statements.”

Writing in Arabic, he posted on 𝕏, “To our friends in the Kingdom of Saudi Arabia and the Middle East, Smotrich does not represent the State of Israel.”

“Instead of normalization with Saudi Arabia, Netanyahu and Smotrich’s coalition chooses Hamas and Qatar in Gaza,” said Yair Golan, leader of the far-left 'The Democrats' party.

“The people of Israel are not the government, and certainly not Smotrich, who wouldn’t even pass the electoral threshold, yet dares to threaten Saudi Arabia and declare there will be no Palestinian state – because the Palestinian Authority is a burden and Hamas is an asset – the exact same cursed policy that led to October 7,” Golan added.

Blue and White party leader Benny Gantz said that Smotrich’s remarks “indicate ignorance and a lack of internalization of his responsibility as a senior minister in the government and cabinet.”

I firmly oppose the establishment of a Palestinian State.
That said, it does not mean we should insult a potential ally🇸🇦.
Incidentally, we’re also pleased to be hosting a unique camel race in the Negev together with the Bedouin community in just a few weeks - and we warmly… pic.twitter.com/wZ0KOrC2FU

— עמיחי שיקלי - Amichai Chikli (@AmichaiChikli) October 23, 2025

Israel’s diaspora minister, Amichai Chikli, responded uniquely.

While stressing he remained opposed to a Palestinian state, Chikli noted that this “does not mean we should insult a potential ally.”

He added, “Incidentally, we’re also pleased to be hosting a unique camel race in the Negev together with the Bedouin community in just a few weeks – and we warmly invite our Saudi friends to join us.”