Iran has strongly condemned the normalization agreements, saying such moves have sacrificed the Palestinian cause against the occupation for the upcoming USA presidential election.
He was joined by Israeli Prime Minister Benjamin Netanyahu and Bahrain Foreign Minister Abdullatif bin Rashid Zayani.
The normalisation moves by the UAE and Bahrain with Israel prompted demonstrations in the Palestinian territories on Tuesday. "After decades of division and conflict we mark the dawn of a new Middle East", Trump said, moments before the accord was signed at the South Lawns of the White House. He added that this new vision "is not a slogan that we raise for political gains" and that "peace is our guiding principle".
"We've already begun to cooperate on combating coronavirus and I am sure that together we can find solutions to numerous problems that afflict our region and beyond", he said.
Egypt was the first Arab State to sign a peace deal with Israel in 1979.
"They're very wealthy countries for the most part, like the UAE, and they would like to buy the fighter jets, and I personally would have no problem with it", Mr Trump said. "You could say it's a back door, but I call it a smart door".
The Trump administration also sees an emerging alliance between Israel and some gulf countries as a bulwark against Iran.
The flags of the United Arab Emirates, Israel and Bahrain flutter along a road in Netanya, Israel, September 14, 2020. "I think that's an important geopolitical shift".
As per the agreements, the UAE and Bahrain will establish embassies, exchange ambassadors, cooperate and work together with Israel across a range of sectors, including tourism, trade, healthcare and security.
Bucks won't trade Giannis if he doesn't sign extension
Giannis Antetokounmpo said he wouldn't force a trade from the Bucks. "I've got confidence in my teammates". That's not happening ", Antetokounmpo told Yahoo Sports .
Israeli Prime Minister Netanyahu thanked the Trump administration for brokering the accords.
The agreements won't end active wars, but supporters believe they could pave the way for a broader Arab-Israeli rapprochement after decades of enmity and only two previous peace deals.
No representatives from the Kingdom of Saudi Arabia or any other Gulf Arab states were present at the signing ceremony.
The historic step in Arab-Israeli relations was orchestrated by the Trump administration, which dangled US arms sales as an incentive for the UAE.
"For years, standard operating procedure in terms of Israeli-Arab relations in general and for the Palestinians in particular has been rooted in rejectionism and anti-normalization", he said.
Noura Erakat, an American-Palestinian human rights lawyer, accused Mr Trump of "simply providing the military, financial and diplomatic infrastructure to further repress popular struggles for democracy and freedom in the Middle East". And then Israel said it was going to go ahead and annex land that Palestinians claim in the occupied West Bank. But El Kurd said the annexation suspension means nothing on the ground.
Trump predicted that Iran, under heavy USA sanctions, would want to reach a deal with Washington, which has been trying to get it to renegotiate an global nuclear accord.
While foreign policy has not been a major election issue, the future of Israel matters to a key group of Trump supporters - Evangelical Christians, who made up about a third of his supporters in 2016.
"All attempts to bypass the Palestinian people and their leadership will have serious consequences", the statement explained, stressing that the US administration and the Israeli authorities will bear the responsibility.
A cabinet statement on Tuesday read, "The cabinet notes that the kingdom stands by the Palestinian people and supports all efforts aimed at reaching a just and comprehensive solution to the Palestinian issue that enables the Palestinian people to establish their independent Palestinian state on the 1967 borders, with East Jerusalem as its capital, in accordance with worldwide legitimacy decisions and the Arab Peace Initiative".