Khalid Al-Falih, Saudi Arabia’s minister of investment, said talks toward the normalization of ties with Israel remain on the table but have always been “contingent on a pathway to a peaceful resolution of the Palestinian question.”

“That was on the table — it remains on the table and obviously the setback over the last month has clarified why Saudi Arabia was so adamant that resolution of the Palestinian conflict has to be part of a broader normalization in the Middle East,” Al-Falih said on a panel moderated by Stephanie Flanders at the Bloomberg New Economy Forum in Singapore.

When asked whether Saudi Arabia would use economic tools such as the oil price to achieve a cease-fire, Al-Falih laughed and said: “That is not on the table today. Saudi Arabia is trying to find peace through peaceful discussions.”

Al-Falih noted that it’s unfortunate the New Economy Forum this year is gathering at a time of heightened crisis. He said that Saudi Arabia is pained on a human level at the loss of life in Gaza and the losses in Israel on Oct. 7.

“The Palestinian people have had their basic rights taken away and the right for statehood and peaceful existence unfulfilled, and it’s time to use this awful situation to bring that to the fore and to resolve it,” Al-Falih said.

The surprise Oct. 7 attack on Israel by militants from Hamas, which is designated a terrorist group by the US and European Union, and Israel’s response has fueled concerns of a broader conflict in the region.

In recent developments, Israel said its troops are fighting inside Gaza City as they move toward its heart from the north and south. Prime Minister Benjamin Netanyahu said his country could keep security control over Gaza for an “indefinite period,” suggesting a longer-term role in the besieged territory.

Peace Efforts

In coming days, Saudi Arabia will convene separate summits with Arab nations, African countries and Islamic nations. In the short term, the objective of these three summits and other gatherings, under the leadership of Saudi Arabia, is to drive toward peaceful resolution of the conflict, Al-Falih said.

“What’s beyond it is an imperative for countries in the Middle East to work toward prosperity of the people and the economy,” he said.

READ MORE: War Leaves Saudi Prince’s Dream of a New Mideast in Tatters (1)

Separately, Al-Falih said he sees positive signs in US-China relations as engagement between the two economic powerhouses increases.

“Pragmatism is surfacing,” Al-Falih said, noting his nation’s strong relationships with the two.

The New Economy Forum is being organized by Bloomberg Media Group, a division of Bloomberg LP, the parent company of Bloomberg News.

--With assistance from Stephanie Flanders, Rebecca Choong Wilkins and Philip J. Heijmans.