Tel Aviv and Abu Dhabi announced their plans to normalise their ties earlier this month, with the United Arab Emirates becoming the first Gulf state to establish relations with Israel.

United Arab Emirates President Khalifa bin Zayed Al Nahyan has issued a decree allowing financial and commercial deals with Israel to be struck, the Emirates News Agency reported on Saturday. The decree is aimed at "supporting bilateral cooperation in order to arrive at (the establishment) of bilateral relations", the state-run news agency said.

The deal between Israel and the Emirates, brokered by the United States earlier in August, stipulates that the Jewish state won't extend additional sovereignty over areas of the West Bank, in exchange for establishing ties with Abu Dhabi. The agreement makes the UAE the third Arab country to have a full peace deal with Israel after Egypt in 1979 and Jordan in 1994.

The accord was harshly criticised by some Arab states, as well as by Turkey and Iran, which urged other countries to boycott Israel, while the Palestinian National Authority said it was a "betrayal of the Palestinian cause".