I heard that the reason for the normalization and establishment of diplomatic ties between Israel and UAE/Bahrain is so that the US could sell exports-controlled military goods to UAE and Bahrain. What I don't understand is what establishing diplomatic ties with Israel has to do with it?
US arms sales are limited by
- international agreements which the United States has signed,
- national law passed by the US Congress (notably the S.2673 - United States-Israel Strategic Partnership Act of 2014), and
- policy decisions made by the US administration.
Obviously, changing policy is easier than changing laws, and domestic law requires the US administration to take the military situation for Israel into account for their arms deals. Among other things, the law requires
(B) a detailed evaluation of—
(i) how such sale or export alters the strategic and tactical balance in the region, including relative capabilities; and
If various Arab states are no longer official enemies of Israel, then arming them affects the strategic balance in a different way.
Israel is a strong US ally in the region. The ties between the two countries have become ever more important as the Trump administration works closely with the Israeli government to achieve a variety of policy objectives.
As discussed on Aljazeera in August
Under understandings dating back decades, Washington has refrained from Middle East arms sales that could blunt Israel's "qualitative military edge". This has applied to the F-35, denied to Arab states, while Israel has bought and deployed it.
However that same article makes clear that Israel's stance on this matter has not changed. Despite Trump's recent statements it is not clear that such changes were part of the UAE/Israel negotiations, nor that such sales will actually go ahead.
“They’re very wealthy countries for the most part, like the UAE, and they would like to buy the fighter jets, and I personally would have no problem with it,” Trump said. “Some people do, they say maybe they go to war.”
It could be assumed that establishing UAE/Israel diplomatic relations is a first step to changing this stance. But at the moment I don't believe there is solid evidence of this as a process or stepping stone.