The city hall in Tel Aviv was lit up with the flags of Israel and the United Arab Emirates on Thursday, after the two countries declared they would be establishing full diplomatic ties.
The gesture comes as the UAE on Thursday became only the third Arab country to agree to have full ties with Israel, after Egypt and Jordan.
U.S. President Donald Trump first announced the major development on Thursday, saying the United Arab Emirates and Israel have agreed to establish full diplomatic ties as part of a deal to halt the annexation of West Bank land sought by the Palestinians for their future state.
Tel Aviv Mayor Ron Huldai, a member of the dovish Labor party, congratulated Prime Minister Benjamin Netanyahu on the "double achievement" of peace with the UAE and shelving of plans to annex parts of the West Bank.
Tel Aviv city hall often lights up to show national flags in a sign of solidarity in times of strife. Following terror attacks in the UK and U.S., for example, it has displayed the Union Jack and Stars and Stripes.
Last week, a decision to light up the building with the Lebanese flag following the devastating explosion at Beirut port won both praise and criticism.