Kushner, who is also former President Donald Trump's son-in-law, and Berkowitz were nominated by famed attorney Alan Dershowitz for their role in orchestrating the Abraham Accords, which saw the US mediate normalization agreements between Israel and four Muslim states.
Dershowitz is allowed to nominate for the prize as a professor emeritus at Harvard.
"The Nobel Peace Prize committee is not going to give the Prize to a slum lord".
Eide noted that the Nobel committee has twice awarded the peace prize to antiracist South Africans - Albert Luthuli in 1960 and Nelson Mandela in 1993.
Kushner, the former president's point-man for Middle East issues, told Reuters he was honored by the nomination.
The 2020 agreements that established diplomatic ties between the Jewish state and the United Arab Emirates, Bahrain, Sudan and Morocco stand as one of Trump's few major foreign policy successes.
Berkowitz also reacted to the nomination in a statement, which read, "I would like to thank President Trump and Jared Kushner for having me on this team, and Professor Dershowitz for the nomination".
The agreements were significant because most states in the Middle East and North Africa do not recognize Israel. "He is really producing peace in the world in a way in a which none of his predecessors did, and he fully deserves the Nobel Peace Prize".
Dershowitz lauded Kushner and his deputy Avi Berkowitz as key figures among many who helped bring about the Abraham Accords. "It is an award for fulfilling the daunting criteria set out by Alfred Nobel in his will", he wrote, according to Reuters.
"Their legacy will also tarnish the reputation of the Nobel Prize and its goal to reward good effort and peace".