UAE and Israel agree on visa-free travel and $3 billion 'Abraham Fund'

Two Emirati ministers made the first official UAE visit to Tel Aviv on Tuesday

Emirati and Israeli ministers signed a series of major deals in Tel Aviv on Tuesday, covering visa-free travel and a major private sector-led investment fund.

A $3 billion 'Abraham Fund' was set up by the two countries, along with the US International Development Finance Corporation, on the first ministerial visit since the two countries normalised diplomatic ties.

Abdulla bin Touq, Minister of Economy, and Obaid Al Tayer, Minister of State for Financial Affairs, were on board an Etihad Airways plane that touched down at Ben Gurion Airport outside Tel Aviv at 1pm UAE time.

They were accompanied by US Treasury Secretary Steven Mnuchin and Middle East envoy Ari Berkowitz, who were in Abu Dhabi for talks on Monday.

The delegation was greeted on the tarmac by Israeli Prime Minister Benjamin Netanyahu.

He said the two countries would have reciprocal visa-free travel for UAE nationals, making Emirati citizens the first in the Arab world to not require Israeli entry permits.

“Today we are making history. We are making history in a way that will stand for generations,” Mr Netanyahu said at a ceremony stage in a tent on the tarmac.

“We will remember this day, a glorious day of peace.”

The $3 billion deal follows the Abraham Accord, signed in Washington DC last month, which normalised UAE's ties with Israel.

The countries will together open a development office in Israel to identify and initiate projects with a high developmental impact, including those that spark economic growth, improve standards of living and create high-value jobs, the UAE's Ministry of Foreign Affairs and International Co-operation said.

Mr Al Tayer said talks would include financial co-operation and trade to strengthen the economies of the nations. An agreement will be signed on double taxation, pointing out that the agreements with Israel carry many benefits for both sides.

"We are committed to supporting a legal framework for the movement of people and goods... between the UAE and the state of Israel, to achieve prosperity for both of our peoples and economies," he said in a televised address at the airport.

"It has been a pleasure being with you all today, we look forward to welcoming you to the UAE in the near future."

Earlier, Israeli government said that "agreements will be signed on aviation, investment protection, visa exemptions ... and science and technology".

An agreement authorising 28 commercial flights a week between the two countries is expected to be among the deals finalised.

The UAE announced its decision to normalise relations with Israel in August and signed the Abraham Accords at the White House on September 15.

Since then, the UAE and Israel have signed several commercial deals.

A key tenet of the accord was the assurance from Israel that it would suspend annexation of Palestinian territory, including the occupied West Bank and Jordan Valley.

The UAE is the third Arab country to sign a peace deal with Israel and establish diplomatic ties, after Egypt and Jordan in 1979 and 1994, respectively.

Bahrain also normalised relations with Israel, signing an official agreement in Manama on Sunday.

Most countries consider the West Bank settlements illegal under international law, a charge Israel denies.

US President Donald Trump gave US blessing to Israeli annexation of large chunks of the West Bank, including the settlements considered illegal under international law, in his controversial “peace plan” unveiled in January.

The UAE has consistently reaffirmed its commitment to the creation of a Palestinian state.