In an interview with Arutz Sheva-Israel National News, Minister of Economy and Industry Nir Barkat addressed the question of whether Israel has reached “the day after" the war and laid out his vision for the next stage regarding the Gaza Strip.

“I believe that there’s an alternative to a two-state solution," Barkat said. “We have to rip apart the Palestinian Authority. They have no right of existence and replace it with the model of Emirates."

He said he has worked “over the past five years with Dr. Moti Keidar on proposing an alternative framework. Rather than creating a Palestinian state and kicking the Jews out," he explained, “the plan envisions a set of autonomies that would coexist side by side with Israeli communities."

According to Barkat, “the model is supported by the right of center and by settlers.’ He pointed to Hebron as the first potential example, saying the city opposes the Palestinian Authority. Over the past year, he said, he has met numerous times with local leaders there.

“They gave us a letter saying that they want to leave the Palestinian Authority and join the Abraham Accords," he said. “They recognize Israel as the state of the Jewish people. They want to collaborate with us rather than paying a million dollars to whoever kills an Israeli. They will fight their own people if, God forbid, they use terror."

Barkat described the model as the key to coexistence in the Middle East and framed it as part of a broader concept of “peace through economy." He said he has presented the idea to Prime Minister Benjamin Netanyahu and others, noting that about a year ago 99 out of 120 Knesset members voted against a Palestinian state.

“All of them plus will support this model because we have the sheikh on the other side coming and saying, ‘Hey, we want to coexist with you,’" he said.

According to Barkat, once the arrangement is settled and Israel provides support, local leaders would appeal to the international community, saying they have lived there for 700 years and want independence from what he called “corrupt terrorists" brought from Tunisia. He said they would seek to release themselves from the Oslo agreements and redo understandings with Israel.

Asked whether any solution in Gaza would depend on success in Hebron, Barkat responded, “Yes. The Emirates model in Hebron is certainly the ripest, ready-half a million people. They’re the first to demonstrate how this could work."

He added that other Arab cities in Judea and Samaria may join, though he declined to name them. If cooperation in Hebron leads to what he described as real coexistence, Barkat said, the international community would face a clear contrast between that model and Gaza. He characterized it as self-determination for the sheikh living in Hebron, adding that the idea “makes a lot of sense to everyone, including the Americans."

Turning to the broader challenges facing Israel, Barkat said the economy and industry constitute another battlefront. As minister, he said he is responsible for commerce and international economic relations.

“The world is saying, ‘Hey, these Israelis, they’ve done something right,’" he said, arguing that Israel has crippled Iran and its proxies while extending a hand for peace. He said countries recognize Israel’s capabilities in defense, innovation and weaponry.

In regions such as India and the Far East, he said, countries deciding where to purchase defense systems are unlikely to turn to Russia, Iran, China or Europe, but rather to Israel and the US.

Addressing anti-Israel sentiment in Europe, Barkat said Europe is confused, ‘they don’t know where they’re going.’ He noted strong ties with Germany and Eastern Europe, while acknowledging that other relationships have been harmed. “Economically," he said, “Israel is shifting eastward."

“All of Europe together is 9% of the world. Asia is 59% of the world," he said, citing growing ties with India, the Philippines and Japan. Demand for Israeli products in Asia has increased dramatically, he added, encouraging Israeli entrepreneurs to focus on markets where they can succeed.

Concluding with the US, Barkat praised the relationship under President Donald Trump.

“I think we never had such a great friend in the White House like President Trump," he said, highlighting what he described as an exceptional personal relationship between Trump and Netanyahu and phenomenal collaboration between the two countries.

Barkat said Israel should use every moment of that cooperation to make major advances and expressed gratitude to the president, his administration and the American people for their support, noting that while challenges remain, they are addressed in a spirit of collaboration.