Emirates, Etihad tap Israel for growth as new business ties deepen

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Etihad Airways is set to launch daily scheduled flights to Tel Aviv, in another sign that Emirati business is actively tapping Israeli markets for reciprocal growth opportunities.

"Following the signing of the new bilateral agreement, Etihad is delighted to announce a direct link between these important cities," said Mohammad Al Bulooki, Etihad's chief operating officer, in a statement.

"The commencement of scheduled flights is a historic moment and as an airline, cements Etihad's commitment to growing opportunities for trade and tourism not just between the two countries but also within the region and beyond," Al Bulooki added."Everybody's expecting quite a lot of business activity or tourist activity as the two countries mesh the new relationship," Emirates President Tim Clark told CNBC in an exclusive interview on Sunday.

Israeli flagship El Al, as well as Israir and Arkia, have plans to launch Tel Aviv-to-Dubai services in December.

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