The United Arab Emirates announced Saturday it had repealed legislation imposing a boycott of Israel after the two countries struck a US-brokered deal to normalise relations.
UAE President Sheikh Khalifa bin Zayed Al-Nahyan issued a federal decree "abolishing the Federal Law No. 15 of 1972 regarding boycotting Israel and the penalties thereof", the official WAM news agency reported.
"It will be permissible to enter, exchange or possess Israeli goods and products of all kinds in the UAE and trade in them."
The UAE will be the first Gulf state and only the third Arab country to establish full diplomatic ties with Israel — a move condemned by the Palestinians as a betrayal.
Companies and individuals in the UAE may now enter into agreements with firms or individuals residing in Israel, WAM reported.
Israeli Prime Minister Benjamin Netanyahu welcomed the decision in a statement later Saturday.
"This is an important move to advance prosperity and peace in the region," he said.
The UAE move comes ahead of the arrival of an Israeli-American delegation to Abu Dhabi on the first commercial flight from Israel on Monday.
The delegation, led by top aide and son-in-law to US President Donald Trump Jared Kushner and Israeli National Security Advisor Meir Ben Shabbat will seek ways to boost cooperation in areas including aviation, tourism, trade, health, energy and security, according to Netanyahu's office.
