In a nationwide televised address, Israeli Prime Minister Benjamin Netanyahu said the peace deal would lead to "full and formal peace" with the Gulf Arab state and voiced hope that other countries in the region would follow the UAE's example.
The normalization of relations between the two countries is a victory and a setback for the Palestinians, who have depended on Arab support in their quest for independence. It also gives Mr Trump a foreign policy success as he seeks re-election on 3 November.
Israel's opposition leader Yair Lapid congratulated Netanyahu, adding, "This step is proof that negotiations and agreements, not unilateral steps like annexation, which would harm Israel's security, are the way forward for our diplomatic relations".
In their joint statement Thursday, Trump, Netanyahu and Prince Mohammed said Israel and the UAE would "immediately expand and accelerate cooperation regarding the treatment of and the development of a vaccine for the coronavirus".
Israel and the United Arab Emirates have reached an historic peace agreement, the first such event to take place since Israel and Jordan signed their peace treaty in 1994.
Mr Netanyahu has sought to build settlements on lands sought by the Palestinians and embraced a United States proposal that would allow him to annex large parts of the occupied West Bank while granting Palestinians limited autonomy in other areas.
Israel and the United Arab Emirates announced on Thursday that they will normalise diplomatic ties and forge a broad new relationship, a move that reshapes the order of Middle East politics from the Palestinian issue to Iran.
Shooting outside White House as Trump escorted abruptly from briefing
The incident happened on the corner of 17th Street and Pennsylvania Ave, which is outside the perimeter of the White House. A law enforcement source told Fox News that the suspect's wounds in the incident do not appear to be fatal.
Trump said his adviser and son-in-law Jared Kushner has done a "great thing" and "people don't always understand what he's able to do".
The agreement, Pompeo said, "reflects their shared regional vision of an economically integrated region".
Israel's failure to do this would only deepen the decades long Arab-Israeli conflict and threaten the security of the region as a whole, Safadi said.
It remains unclear what prompted Israel and the UAE to make the announcement now.
The UAE peace deal with Israel is a "treacherous stab in the back of the Palestinian people", Hamas said in a statement.
He predicted "other Arab and Muslim countries will join our circle of peace".
"The Palestinian leadership rejects and denounces the UAE, Israeli and USA trilateral, surprising, announcement", said Nabil Abu Rudeineh, a senior adviser to Abbas.
Guterres had urged Israel in June to abandon plans to annex settlements in the West Bank, warning that this threatened prospects for peace with the Palestinians.