Apparently UAE and Israel have signed a free trade agreement. Don't ask me how much this is worth, but it definitely would not have been possible without establishing diplomatic relations first.
According to the Economist, even before the FTA iself was inked, trade between the two countries had taken off (although after 2020, when the diplomatic relations were established)
And they offer this commentary:
Arab countries trade little with the world besides energy. Excluding oil and gas, the 22-strong League of Arab States accounts for only 2.7% of the world’s flow, despite having 5.6% of its population. Trade within the group is particularly sluggish. Just 18% of it is conducted within the region, compared with 34% in East Asia and 69% in Europe. This stifles development and keeps many Arab countries dependent on fossil fuels.
One reason is that there is no effective rules-based common market along the lines of the EU. Although the pan-Arab Free Trade Area (PAFTA), signed in 1997, lowered tariffs on goods within the region, it still has some of the world’s highest trading costs. By contrast, many exports from the EU into the region face fewer non-tariff barriers, according to a UN study. Many of the region’s economies are natural competitors, seeking greater market share for their energy exports, rather than producing different goods and services that can be traded between them. Israel, with its tech-focused, service-based economy and large defence manufacturers, offers new products and markets.