More than 90 percent of tariff lines will be dropped immediately, and roughly 95 percent of goods traded between the countries will qualify for preferential treatment.

'In the coming years we will increase our focus on Israel and keep this incredible momentum moving forward,' says chair of the Dubai Multi Commodities Centre.

The free trade agreement is expected to increase the flow of goods and services between Israel and the UAE.

The deal is expected to boost already increasing bilateral trade between the two countries.