The United Arab Emirates (UAE) has opened an embassy in Israel.
The opening in Tel Aviv follows a few weeks after that of the Israeli embassy in the UAE.
The countries decided to establish diplomatic relations last year.
The embassy in the Tel Aviv Stock Exchange was officially inaugurated after a ceremony in which the UAE Ambassador to Israel hoisted his country's flag.
The ceremony was attended by, among others, Isaac Herzog, the new president of Israel.
"Seeing the UAE flag in Tel Aviv was a distant dream a year ago," the president said, according to Israeli media.
Ambassador Mohamed Al Khaja spoke of an important milestone and called the opening of the embassy "just the beginning" of the new relationship with Israel.
The UAE and Israel signed the so-called Abraham Accords in September.
Bahrain also signed it.
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The agreements were drawn up by the United States and intended to normalize relations between the countries, which came together because of their concerns about Iran.
Until then, only two Arab countries maintained political relations with Israel: Egypt and Jordan.
After the UAE and Bahrain, Sudan and Morocco also decided to strengthen ties with Israel.
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