"America has stood for rule of law, for justice, for respect of international agreements...and now we see all of that being pushed aside for the sake of internal political calculations," Al-Faisal, a former chief of Saudi Arabia's intelligence agency, told CNBC's Hadley Gamble on Monday.
"It's not a step that will bring peace to Palestine or the Middle East, "he said.
A delegation of senior White House advisors, including Ivanka Trump and her husband Jared Kushner, will attend Monday's ceremony of the new U.S. institution. President Donald Trump first announced the news in December when he formally recognized the holy city as Israel's capital in a move that broke decades of American policy.
Israel has long been a close American ally but Washington — until now — refrained from acknowledging Jerusalem as the country's seat of government since the city remains a central battleground in the political war between Palestine and Israel.
The new embassy has "raised the volume of anti-American rhetoric not just in Palestine but throughout the Arab and Muslim world," said Al-Faisal, who was Saudi Arabia's ambassador to the U.S. from 2005 to 2007.
"It's given impetus to the terrorist groups that have always claimed America was against Arabs and it allows Iran to capitalize on this issue by accusing America of supporting Israel," he continued.
On the topic of Tehran however, Al-Faisal appeared to side with Trump's actions.