The United Arab Emirates announced Saturday it had repealed legislation imposing a boycott of Israel after the two countries struck a US-brokered deal to normalise relations.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. 

As part of the agreement announced by US President Donald Trump earlier this month, Israel agreed to suspend planned annexations in the occupied West Bank, although Prime Minister Benjamin Netanyahu quickly insisted the plans remained on the table.