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What is Paul saying here?

25 So that you may not claim to be wiser than you are, brothers and sisters, I want you to understand this mystery: a hardening has come upon part of Israel, until the full number of the Gentiles has come in.
26 And so all Israel will be saved; as it is written, “Out of Zion will come the Deliverer; he will banish ungodliness from Jacob.”
27 “And this is my covenant with them, when I take away their sins.”
28 As regards the gospel they are enemies of God for your sake; but as regards election they are beloved, for the sake of their ancestors;
29 for the gifts and the calling of God are irrevocable.
30 Just as you were once disobedient to God but have now received mercy because of their disobedience,
31 so they have now been disobedient in order that, by the mercy shown to you, they too may now receive mercy.
32 For God has imprisoned all in disobedience so that he may be merciful to all.  Romans 11:25-32 (NRSV)

Just as those who believe in Jesus as the Christ are saved despite their sin, so will “Israel”.  There’s not enough room to debate exactly what Paul means by “Israel” or whether he is really saying that “all Israel will be saved” as in every last person of the nation of Israel.  What he is saying and affirming is that Israel has and will continue to have a special place in God’s plan of rescue for the world and that God’s covenant – including the covenant as announced at Sinai – is ultimately one of mercy and grace.