Israel is "at the cusp" of establishing formal diplomatic ties with Saudi Arabia by finalizing a US-brokered breakthrough peace agreement, Prime Minister Benjamin Netanyahu told the UN General Assembly (UNGA) in New York on Friday.

"Peace between Israel and Saudi Arabia will truly create a new Middle East," he said.

Currently, the two countries have no official bilateral relations, but the two countries have been working together covertly on security issues for some time.

On Wednesday, Saudi Crown Prince Mohammed bin Salman had also confirmed the efforts of normalizing their relations. However, he added that the progress of the agreement would depend on how Israel would deal with Palestinians.

Israel's confidence in reaching a peace accord with Saudi Arabia is notable considering Riyadh and Washington have stressed over inclusion of Palestinians in the diplomatic process.

Netanyahu objected to the push for Palestinian inclusion and said, "They [Palestine] should be part of that process, but they should not have a veto over the process."

Hurdles facing the peace accord

While Israel has maintained optimism towards the deal, there are obstacles to achieving a successful final agreement.

Saudi Arabia has demanded the creation of a Palestinian state which would contradict Netanyahu's government's current stance on the matter.

Saudis are also negotiating a defense deal with the US and are seeking development of their own nuclear program, stoking fears of an arms race with Iran.

Israel's diplomatic ties with the Arab world

But Netanyahu was optmistic, even saying the deal could happen soon. "We probably will in the end achieve it, because it makes sense, but I think that if we want to seize this opportunity, we have to do it in the next months," Netanyahu told US broadcaster Fox News.

During his address at UNGA, Netanyahu underlined his country's normalization efforts with other countries in the Middle East. He mentioned four countries that normalized relations with it in 2020 as part of the Abraham Accords.

"There's no question the Abraham Accords heralded the dawn of a new age of peace. But I believe that we are at the cusp of an even more dramatic breakthrough, an historic peace between Israel and Saudi Arabia," Netanyahu said.

mfi/jcg (Reuters, dpa, AP)