The United Arab Emirates (UAE) and Israel have agreed to establish full diplomatic ties, according to a statement released by Israeli Prime Minister Benjamin Netanyahu, Abu Dhabi Crown Prince Mohammed bin Zayed Al Nahyan and US President Donald Trump.
As part of the deal, Israel will suspend its efforts to declare sovereignty over land sought by the Palestinians for their future state, the US State Department said.
The diplomatic breakthrough effectively halts Israeli plans to annex large parts of the occupied West Bank.
Tel Aviv will instead focus on "expanding ties with other countries in the Arab and Muslim world," the statement reads.
The announcement will make the UAE the first Gulf Arab country to establish diplomatic ties with Israel and only the third Arab nation to do so.
Sheikh Mohammed bin Said Al Nahjan, Crown Prince of Abu Dhabi. Photo: Gregor Fischer/dpa.
Prince Mohammed said he had agreed with Trump and Netanyahu to "stop further Israeli annexation of Palestinian territories."
"The UAE and Israel also agreed on cooperation and agreeing on a roadmap towards establishing a bilateral relationship," he said in a tweet.
Delegations from Israel and the UAE will meet over the coming weeks to sign bilateral agreements on investment, tourism, direct flights, security, the establishment of embassies and a host of other issues, the statement says.