The Arab Peace Initiative (former Saudi Initiative) was officially proposed by Saudi Arabia and has been (re-)endorsed by all 22 member states of the Arab League since 2002. Israel has not officially responded to the API but rather has generally ignored and by default rejected it. This thesis examines the reasons for the Israeli rejection by analyzing the structure of the Israeli government in relation to the position of the prime minister, both normatively and descriptively, and examining public opinion as a potential enabler or constraint on policymaking. It also explores mechanisms such as threat perceptions and framing to highlight cognitive influences that negatively impacted serious consideration of the API. Qualitative interviews with expert Israelis and Arabs contribute to a deeper understanding of the Israeli perspective of the API's shortcomings. The API is unlikely to be implemented under this current government unless Israeli public opinion significantly changes in its favor.