The UAE expressed "grave concern" over the violence in East Jerusalem after far-right groups attacked Arabs and clashes injured more than 100 Palestinians.
There have been nightly disturbances since the start of Ramadan, amid Palestinian anger over police blocking access to the promenade around the walls of the Old City and a ban on gatherings.
On Thursday, far-right Israeli demonstrators marched through central Jerusalem towards the Damascus Gate where there were crowds of Palestinians. Police had barricaded the area as a precaution.
As they marched, many Israelis chanted "Death to Arabs" and some waved banners reading: "Death to terrorists".
With police trying to keep both sides apart, at least 100 Palestinians were injured.
East Jerusalem protests intensified after a march on Thursday by far-right Israelis.
The UAE's Ministry of Foreign Affairs and International Co-operation said it permanently rejected and condemned "all forms of violence and hatred that are inconsistent with humanitarian values and principles", state news agency Wam reported.
The ministry also called on the Israeli authorities "to assume responsibility for reducing the escalation and putting an end to all attacks and practices that lead to a continuing state of tensions".
It stressed the need "to preserve the historical identity of occupied Jerusalem, to restore calm and to exercise maximum restraint to avoid the region drifting to new levels of instability and threatening peace".