Israel and the United Arab Emirates (UAE) will sign a free trade agreement in Dubai on Tuesday, Israel's Economy Ministry said in a statement on Monday.

Under the deal, customs duties will be eliminated on 96 percent of products, including food, agriculture, cosmetics, medical equipment and medicine, the ministry said.

The UAE and Israel formally established relations in 2020 as part of the U.S.-brokered Abraham Accords that also included Bahrain and Morocco. The trade deal is Israel's first with an Arab country.

(With input from Reuters)