The President of the USA has announced that Israel and the United Arab Emirates (UAE) have agreed to establish full diplomatic ties as part of a deal to halt the annexation of occupied land sought by the Palestinians for their future state. Both the countries are close allies of USA.

UAE became the first Gulf Arab state to do so and the third Arab nation to have ties with Israel after Egypt and Jordan. Under the deal, Israel would suspend its plans to annex large parts of the occupied West Bank. The West Bank is sandwiched between Israel and Jordan. One of its major cities is Ramallah, the de facto administrative capital of Palestine.

President Donald Trump, accompanied by U.S. Ambassador to Israel David Friedman, second from right, and others applaud in the Oval Office at the White House, Wednesday, Aug. 12, 2020, in Washington. Trump said on Thursday that the United Arab Emirates and Israel have agreed to establish full diplomatic ties as part of a deal to halt the annexation of occupied land sought by the Palestinians for their future state. (AP Photo/Andrew Harnik)

The deal smoothens the UAE’s international campaign to be seen as a beacon of tolerance in the Middle East despite being governed by autocratic rulers. It puts the UAE out first in a regional recognition race among neighbouring Gulf Arab states.

The announcement justifies the year-long claims of Israeli Prime Minister Benjamin Netanyahu that his government enjoys closer ties to Arab nations than publicly acknowledged. The deal gives Netanyahu a domestic boost at a time when Israel’s coalition government is facing infighting and the possibility of early elections.

The recognition grants a diplomatic win to the USA President Donald Trump ahead of the November election. Neither his efforts to bring the war in Afghanistan to an end nor efforts to bring peace between Israel and the Palestinians have been successful yet.

For Palestinians, who long have relied on Arab backing in their struggle for independence, the announcement marked both a win and setback for the Israel-Palestine relations. While the deal halts Israeli annexation plans, the Palestinians have repeatedly urged Arab governments not to normalize relations with Israel until a peace agreement establishing an independent Palestinian state is reached.

President Donald Trump speaks in the Oval Office at the White House, Thursday, Aug. 13, 2020, in Washington. Trump said on Thursday that the United Arab Emirates and Israel have agreed to establish full diplomatic ties as part of a deal to halt the annexation of occupied land sought by the Palestinians for their future state. (AP Photo/Andrew Harnik)

The deal marks a historic day and a significant step forward for peace in the Middle East. Opening direct ties between two of the Middle East’s most dynamic societies and advanced economics will transform the region by spurring economic growth, enhancing technological innovation and forging closer people-to-people relations.

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