Israel and the United States are planning to establish a $200 million joint quantum fund. Proposed by Maj-Gen. (res.) Tamir Hayman, Director at the Institute for National Security Studies (INSS), the fund would see Israel and the US each invest $100 million between 2026 and 2030 to support collaborative quantum projects. This initiative is being considered for potential involvement from the United Arab Emirates (UAE) and Saudi Arabia.

The proposed fund is modelled on existing Israel-US joint research foundations and aims to support joint commercial ventures involving private quantum companies from both Israel and the US. The potential participation of the UAE and Saudi Arabia is noted for their energy infrastructure, which could support large-scale quantum and AI research. An example of a potential collaboration cited is Quantum Source (Israeli, developing photonic quantum computers) with PsiQuantum (US, building photonic quantum computers), for joint project funding. Offices for this project are suggested for Tel Aviv and Arlington County, Virginia, with potential access to budgets from the 2022 US Chips Act.

A primary objective of this fund is to address and limit Chinese global influence, particularly in quantum technology, and to enhance US global influence by leveraging Israel’s capabilities in quantum and AI technology. The initiative is also positioned to strengthen the Abraham Accords by integrating UAE and Saudi Arabia further into the US-Israel axis through quantum and AI innovation collaborations.

This geopolitical initiative seeks to secure US influence in technology globally, utilizing Israel’s expertise. Its scope may expand to include Central Asian countries such as Azerbaijan, Kazakhstan, and Uzbekistan, and potentially Kuwait and Qatar in the long term, depending on the evolution of the Abraham Accords. Israel is advised to implement export and IP protection laws concerning China to facilitate this proposal.

Read the full report in The Jerusalem Post here.

July 15, 2025