Women wearing face masks against the coronavirus walk past United Arab Emirates and Israeli flags at the Peace Bridge in Netanya, Israel, Aug 16, 2020. (ARIEL SCHALIT/AP)

The United Arab Emirates has formally legalized trade and business transactions with Israeli entities as it moves to establish relations with the Jewish state.

Canceling the boycott law will allow individuals and firms in the UAE to enter into agreements with entities or individuals in Israel, "whether trade or financial transactions or any other deal," state-run news agency WAM reported 

UAE ruler Sheikh Khalifa bin Zayed issued a decree canceling an old federal law that legislated for a boycott of Israel, state-run news agency WAM reported on Saturday. The decision is part of the UAE’s efforts “to expand diplomatic and commercial cooperation with Israel,” WAM said.

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Canceling the boycott law will allow individuals and firms in the UAE to enter into agreements with entities or individuals in Israel, “whether trade or financial transactions or any other deal,” according to WAM. It will also allow Israeli products “of all types” to be imported and sold in the UAE.

The UAE earlier this month said it’s moving to normalize relations with Israel, joining Egypt and Jordan as the only Arab countries to do so.

The announcement came as El Al Airlines plans to operate Israel’s first direct flight between Tel Aviv’s Ben Gurion Airport and the UAE’s capital Abu Dhabi, carrying an Israeli delegation and top aides to US President Donald Trump, who brokered an Aug 13 accord to normalize Israel-UAE ties.

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Trump’s senior adviser Jared Kushner will be among the US officials on the El Al flight departing on Aug 31 at 10 am (0700 GMT), a US official said.

There are no official air links between Israel and the UAE, and it was unclear whether El Al would be able to fly over Saudi Arabia, which has no official ties with Israel, to cut down on flight time.