The United Arab Emirates has said it will establish a 10 billion dollar fund (£7b) to invest in Israel as the two countries seek to foster stronger ties.

 The UAE became the third Arab state to forge diplomatic relations with Israel in a landmark US-brokered deal last year. 

The fund set to support projects across sectors such as manufacturing and healthcare was announced by official Emirati news agency WAM on Thursday.

Israeli PM Benjamin Netanyahu said the fund would “boost” Israel's economy and also revealed plans to “promote a green passport agreement”.

He also said he and Emirati crown prince Mohamed bin Zayed agreed they would “meet very soon” during a recent call.

The Israeli PM was due to visit the UAE on Thursday but postponed the historic trip citing since-resolved “difficulties” in coordinating flights over Jordan. 

The trip would have come just days before Israel’s general election later this month.