Saudi Arabia Becomes Largest Stakeholder in Israeli Autotech Firm

Saudi Arabian company Mithaq Capital, part of Riyadh-based Mithaq Holdings, has increased its small holding in Israeli autotech company Otonomo Technologies up to 20.4 percent.

Mithaq is now entitled to discuss strategy, governance and business with the Israeli company's representatives. The Saudi Arabian company said it may increase or reduce its stake in Otonomo but at this stage has no plans to raise its holding above 25%.

Mithaq is already the biggest shareholder in Israeli ad-tech company Tremor International with a 22% stake.

Otonomo was founded by CEO Ben Volkow. The company provides a platform and commercial arena for data gathered from connected cars and is currently traded on Nasdaq with a market cap of $93 million, after it began trading last August with a company valuation of $1.26 billion.

This is not the first time Arab investors buy stakes in Israeli companies. As ties between previously feuding neighbours grow, Arab funds start looking with more interest at Israeli tech companies. In May, Saudi Arabia and Israel signed an investment agreement, even though the countries still do not have diplomatic relations.

Earlier that month, Saudi Arabia allocated millions of dollars in Jared Kushner's private equity firm for investments in Israeli tech companies. Kushner previously served as Donald Trump's senior advisor and is considered to be the architect of the Abraham Accords signed between Israel and a number of Arab countries in 2020.