The leader of the United Arab Emirates has put an end to an economic boycott against Israel, enabling the two nations to engage in business in another major development towards the improvement of relations, the UAE's state-run news agency disclosed, Saturday.

The U.S.-brokered deal will now set the stage for trade and commerce between the oil-rich Abu Dhabi, high-rise dotted skyline Dubai, and Israel, home to biotech groups, mining, and tech startups.

Abu Dhabi and Tel Aviv officials recently announced they were considering ties tourism, defense, and medicine, among other key businesses.

WAM, the UAE state news agency, announced the move that formally terminates the boycott was made upon orders of Sheikh Khalifa bin Zayed Al Nahyan, the Emirates' leader.

According to WAM, the new law comes within UAE's efforts to broaden diplomatic and commercial partnership with Israel and establish "a roadmap toward joint cooperation" that will boost economic growth and promote technological advancement.

On Friday, the Israeli government listed its first commercial flight to Abu Dhabi, with national airline El-Al servicing the destination on August 31.

Etihad Airways sent an aircraft from Abu Dhabi to Tel Aviv last May to transport supplies to the Palestinians as part of efforts against the coronavirus, marking the first flight by UAE-operated plane to Israel.

Gabi Ashkenazi, Israel's Foreign Minister, stated that the UAE made a very important decision towards the promotion of peace, which will result in significant economic and commercial achievements for both sides while "boosting the stability in the region."

The announcement further binds the August 13 accord that opens up new ties between the two countries which mandated Israel to stop its proposal to annex an occupied West Bank area being sought by Palestine.

But, the UAE-Israel deal does not sit well with the Palestinians, who claim such pact weakens one of its leverages with the Jews in a collapsing peace negotiation.

Hamas, the Islamic militant organization ruling the Gaza Strip since taking control of the area in 2007, denounced the UAE-Israel agreement and the termination of the boycott.

For Israeli prime minister Benjamin Netanyahu, the deal with UAE is "historic" and will stimulate the two sides' economies, especially during the pandemic. The UAE is the third Arab state that has agreed to establish official relations with Israel, after Jordan and Egypt.

Meanwhile, U.S. and Israeli officials have expressed optimism that other Gulf Arab nations will follow suit, with cooperation hinged on mutual trade and security, and their shared animosity toward Iran.