Abu Dhabi Investment Office, which is responsible for bringing foreign investment into the emirate, is to set up the first of a series of representative offices in Israel.
The office in Tel Aviv will focus on "facilitating connections between innovation-focused companies" and other organisations in Abu Dhabi and Israel, Adio said.
It will be the first of an international network of offices in Europe, North America and Asia.
"Abu Dhabi is outward-looking, forward-thinking and committed to global co-operation and mutually beneficial trade,” said the chairman of the emirate's Department of Economic Development, Mohammed Al Shorafa.
"The opening of an international network of investment offices will create new opportunities to connect with innovators from around the world."
The announcement comes after the UAE and Israel on Tuesday signed the Abraham Accord at the White House to normalise relations.
The deal with Israel allows for investments and the growth of the tourism, aviation, security, telecoms, technology, financial services, energy and healthcare sectors in both countries.
Agreements have already been announced between Israeli lenders and Abu Dhabi Investment Bank and Emirates NBD, and between Dubai-based ports operator DP World and the co-owner of the Port of Eilat and Israel Shipyards.
Adio has already identified potential areas of co-operation, particularly in areas of advanced technology such as AgTech, biomedicine and advanced manufacturing.
It is already in talks with Invest in Israel, the Ministry of Economy and Industry and other Israeli entities about potential investments and partnerships.
“The ministry … is delighted to support the opening of Adio’s office in Israel, and is sure that this move will contribute to the strengthening of the economic dialogue between Israel and Abu Dhabi to promote collaboration between the nations,” said Israel's Minister of Economy and Industry, Amir Peretz.
The Tel Aviv office is expected to be operational "in the coming months", Adio said.