Israel and the United Arab Emirates (UAE) signed a free trade agreement on Tuesday, said Israeli Ambassador to the United Arab Emirates Amir Hayek on Twitter.

The free trade agreement is the first of its kind with an Arab country, the Israeli Ministry of Economy said.

The deal was signed in Dubai. Under it, customs duties will be eliminated on 96 percent of products, such as food, agriculture, cosmetics, medical equipment and medicine, and includes regulation, customs, services and government procurement.

The UAE and Israel signed a U.S.-sponsored deal to normalize their relations in September 2020. 

Since then, the two countries have exchanged official visits by senior officials and signed dozens of bilateral agreements in various fields, including investment, banking services and tourism.

(With input from Reuters)