Symbolic announcements and actions, including: an Israeli declaration that it is committed to a two-state solution and/or the Palestinian right of self-determination; a US consulate in East Jerusalem and a Palestinian consulate in Washington; an upgraded Palestinian status at the United Nations; and removal of the PLO from the list of terrorist organizations.
Accelerated development of the Palestinian economy, including: development of the gas field off the Gaza coast, construction of a seaport and an airport in the Palestinian territories, eased restrictions on the clearance revenues held by Israel, new road infrastructure in the West Bank, joint Israeli-Palestinian industrial zones, and perhaps a revamping of the fundamental principles underlying the Palestinian economy (the Paris Protocol).
End of unilateral Israeli activity: Israel commits not to annex territory in the West Bank, to freeze settlement construction, and not to establish new outposts. Similarly, it would commit to refrain, as far as possible, from entering Area A, which is under PA control.
Transfer of territory to PA control: The PA wants part of Area C, which is under full Israeli control, transferred to Area B, where the PA has control over civilian affairs. Similarly, PA could gain full control over some territory that is currently only under its civilian authority, turning it from Area B to Area A.
A defined future political process that leads to the separation of the State of Israel from the Palestinian Authority: in other words: a new interim agreement and a new roadmap. Clearly, the first step would be limited, given the composition of the current Israeli government. Subsequent, agreed-upon measures would lead to the establishment of a politically independent Palestinian entity. As with the Oslo Accords, this will be a gradual process that entails an interim agreement. The PA has long opposed the idea, but perhaps its prior firm opposition has dissipated.

According to Riyadh and Washington, the Palestinian element in the normalization agreement comprises measures intended to advance the establishment of a Palestinian state. Unlike with the agreement between Israel and the United Arab Emirates, a promise not to annex territory will not satisfy the Kingdom or the US Congress. Under current conditions no one is talking about “a Palestinian state within the 1967 borders with East Jerusalem as its capital,” as called for by the Arab Peace Initiative. Still, all parties will likely select a mix of elements that all can accept. The more such elements there are, the easier it will be to garner approval for the deal in Saudi Arabia and the United States, compared to Israel.

The Historic Strategic Benefits, and Steep Cost, of Israel-Saudi Normalization

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