For Israel, the agreement means that the country's isolation in the Middle East is broken.
Israel is now looking forward to increased trade, military cooperation and direct flights to the Gulf.
For the United Arab Emirates and Bahrain, this means that the countries get a share in Israel's tech industry, such as surveillance and security systems.
In addition, the agreement probably means that the United Arab Emirates will be allowed to buy advanced American F-35 fighter jets that are not visible on radar.
The countries will now establish diplomatic relations and embassies will be opened.
Feeling betrayed
In the Foreign Office's section Israel's New Friend, we hear, among other things, the only Jewish rabbi in the United Arab Emirates Levi Dachman happily exclaim: “This will change everything, this is good news for humanity.
The boundaries are down and now young entrepreneurs and leaders can finally come together. ”
If the agreement holds and works, it is very possible that more Arab states will follow suit.
Countries mentioned are Oman, Sudan and Morocco.
The regional superpower Saudi Arabia is also following developments closely and may be next in line, which would fundamentally change the Middle East.
For the mediator, the United States, the alliance against arch-enemy Iran is strengthened.
But above all, the agreements are a foreign policy success for President Trump, which comes at a very opportune time now ahead of the US presidential election.
The big losers are the Palestinians who feel betrayed by the United Arab Emirates and Bahrain.
The map is redrawn
According to the United Arab Emirates, the agreement is conditional on Israel stopping plans to annex parts of the Jordan Valley.
But according to Israeli Prime Minister Benjamin Netanyahu, plans are only postponed.
In 2002, the so-called "Arab Peace Initiative" was launched, in which the Arab countries agree to normalize relations with Israel if the country first withdraws from occupied Palestinian territories and recognizes a Palestinian state.
Until now, the Arab countries have stood united behind the peace proposal.
But after the Arab Spring, the political map of the region has been redrawn and the reality today looks completely different compared to when the peace plan was presented.
Other priorities
Several wars are raging in the Middle East and the Arab states have long shifted the focus from the Palestinians to internal radical Islamism and Iran's progress in the region.
Instead of seeing Israel as an enemy, Israel is now seen as an ally in the struggle to try to stop Iran's power ambitions.
The agreement barely mentions the Palestinians and the word "two-state solution" is not included at all.
For ordinary Palestinians in Gaza and the West Bank, nothing will change or improve.
They are forced to live under continued blockade and occupation.
In this week's episode of SVT's Foreign Office, the guests dig into the normalization agreement between Israel and the United Arab Emirates and Bahrain - see the episode here on SVT Play.