WATCH | Israel, UAE diplomacy agreement a foreign policy win for Trump

Israel and the UAE agreed Thursday to normalise relations, a historic shift making the Gulf state only the third Arab country to establish full diplomatic ties with the Jewish state.

"HUGE breakthrough today! Historic Peace Agreement between our two GREAT friends, Israel and the United Arab Emirates!" US President Donald Trump said on Twitter.

"Everybody said this would be impossible ... After 49 years Israel and the United Arab Emirates will fully normalise their diplomatic relations," Trump later told reporters.

White House adviser Jared Kushner, who helped draw up Trump's controversial Middle East peace plan, described the deal as "an icebreaker" and voiced hopes of seeing "countries start to do the same".

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