Dubai, Jan 24 (IANS): The Israeli Cabinet has approved the launching of an Israeli-Emirati industrial research and development fund (R&D), the Foreign Ministry said.

Foreign Minister Yair Lapid tweeted that the cabinet decided to "establish a joint Israeli-Emirati fund for mutual investments in hi-tech," adding that both countries "share a passion for the development of advanced technologies that will improve quality of life". reports Xinhua news agency.

The Foreign Ministry said in a statement that Israel and the United Arab Emirates (UAE) will respectively allocate 15 million shekels ($4 million) annually for 10 years.

The fund will focus on industrial research and development, and support innovative technology companies of the two countries, it added.

Israel's Minister of Innovation, Science and Technology Orit Farkash HaCohen said she sees "great importance" in establishing a mutual investment fund in high-tech fields.

"The UAE has historically invested in energy, infrastructure and other fields, and that is why the new fund will create a bridge of facilitating the UAE's investment in Israeli technology," she said.

Israel and the UAE signed the so-called Abraham Accord, a US-brokered normalisation agreement, in September 2020.

The UAE was the first Gulf state to agree to normalise ties with Israel, followed by Bahrain, Sudan and Morocco.