She tweeted: "We made history. The people of Israel live!”
Knesset speaker Yuli Edelstein called Mr Muki a "champion", adding: "It is a great feeling to hear our national anthem... played for the first time in Abu Dhabi."
There was double joy for Israel when Peter Paltchik added a second gold medal to their haul at the competition.
In the past, Israelis were only allowed to compete at the event if they were the only athletes not to wear their national flag.
In 2015, Ms Regev called this “infuriating and outrageous”.