This spyware is invaluable for the Israeli government because they have something that repressive Arab regimes want. These regimes can’t be bought with money, because some of them like Saudi Arabia and UAE have plenty of money. Israel needs friends and this is a great way to start and maintain friendships - provide a way for these tinpot dictators to cement their power. Sure, some people might be annoyed they were spied on but the news cycle will move on soon, while Saudi and UAE will remain staunch allies. MBS still loves them because Khashoggi remains dead.
Israel would have gotten away with it too, if it hadn’t been for the meddling kids at Amnesty International.