https://www.reuters.com/article/us-usa-emirates-spying-insig...
So the NSA monitors the UAE comms, but the CIA does not.
I mean, perhaps not on the ground in Israel (which amounts to a small technicality). They still keep tabs on Israel activity everywhere else.
Allies in general don't mind being spied on, as long as that intel is shared. For example, German security forces had no idea about the Hamburg cell plotting 9/11 in their country. They would very much wanted a tip off, even from an allied spy agency.
That's what SIGINT is.
> Like Merkel's phone being tapped.
Which is an example of SIGINT. And it was leaked which is why it became an issue. World leader's are always surveilled.
There's a certain level of aggression you use against acknowledged enemies that would be awkward if exposed against allies, that is not to say it doesn't still happen.
It most certainly is https://en.wikipedia.org/wiki/Jonathan_Pollard
I don't think what you are saying is even technically possible ("we spy on everyone except this small country"). Everyone spies on everyone.