Emiratis will be allowed to travel to Israel for up to 90 days without a visa, officials said on Thursday evening.
The Ministry of Foreign Affairs and International Co-operation said the exemption was part of a mutual visa waiver deal reached by the UAE and Israel.
The agreement was signed by Omar Ghobash, UAE Assistant Minister for Culture and Public Diplomacy, and Shlomo Mor-Yosef, director general of the Population and Immigration Authority in Israel's Ministry of Interior.
"The entry into force of the memorandum will allow UAE passport holders to enter ... Israel without a visa," Mr Ghobash said.
He said the move reflected the desire of both nations to strengthen relations.
Mr Ghobash stressed that the deal would have a positive effect on tourism, trade, investment and other sectors of mutual interest to the two countries.
The UAE and Israel formally agreed to allow visa-free travel during talks in Tel Aviv on Tuesday.
The UAE announced its decision to normalise relations with Israel in August. Known as the Abraham Accord, the agreement was signed at a White House event last month.
Since then, the two countries have struck several commercial deals.