Israel and U.A.E. Get Down to Business

Israel and the United Arab Emirates agreed to establish formal diplomatic ties in a dramatic U.S.-backed shift that signaled Tel Aviv’s warming ties with Gulf Arab states. The breakthrough gives each country and the U.S. a chance to reshape the region. Photo: Sean Gallup/Getty Images; Michael Reynolds/Pool/Getty Images and Emirates News Agency via AP

Investors in Israel and the United Arab Emirates are moving to strike deals in a business environment transformed by a diplomatic breakthrough between the two countries.

Last week’s surprise move by the U.A.E. to normalize relations with Israel in a U.S.-backed shift paves the way for establishing direct flights, opening telecommunications links, exploring joint ventures and, in some cases, bringing commerce that has long been underground into the open. The change has the potential to warm ties between Israel and the Arab…