Prime Minister Binyamin Netanyahu spoke optimistically about Israel's future and place in the world at the Jerusalem Post Diplomatic Conference Wednesday.

"I've never been more hopeful." the Prime Minister said. "I'm hopeful about Israel. I'm hopeful about our region. I'm hopeful about peace. I'm even hopeful about the UN."

“Israel is in the midst of historic revolution in its place among the nations." he went on. "That revolution is born of a fundamental change of global economics.”

Netanyahu explained: "Ten years ago, the ten leading companies in the world were 5 energy companies, [and] one IT, Microsoft. A mere ten years later, in the fastest change in the history of the world, the picture is reversed. Five IT companies in the top ten, [and] only one energy company left."

He said that this change in the global economy is good for Israel. "Israel is right in the nexus of big data, connectivity and artificial intelligence. That affects everything. Nothing remains without technology. Nothing."

"The future belongs to those who innovate." he added. "We are the innovation nation."

Netanyahu said that Israel's strengths in the technology, information, and innovation fields create "vast opportunities" which "changes fundamentally the way that we engage with other nations and the way they engage with us."

"Our relations with the Arab world are rapidly changing." he declared. “You see it reflected in the blogosphere” and “in the Arab Internet.”

Netanyahu said that the Arab nations of the Middle East are starting to change their perception of Israel from an enemy to a partner and even an ally, and that Israel's technological and security know-how is improving Israel's relationship with other nations around the world, from Africa, to Asia, and South America.

Israel, short of mineral deposits and other geological natural resources, has often said that its most plentiful natural resource is its population's brainpower.