The embassy was inaugurated by Israel's Foreign Minister Yair Lapid in the presence of Noura Al Kaabi, Emirati Minister of Culture and Youth in Abu Dhabi.
Lapid is on a two-day visit to the UAE, the first-ever by an Israeli cabinet minister.
During the ribbon-cutting ceremony, Lapid said Israel is interested in peace with all its neighbours. "We are not going anywhere. The Middle East is our home. We are here to stay and we call on all countries in the region to realise this."
"This is a historic moment. And it is a reminder that history is created by people. People, who understand history but are willing to change it. People who prefer the future to the past," Lipid said later at the press conference.
The high-rise office in Abu Dhabi will serve as a temporary embassy. In Tel Aviv, the Gulf country officially inaugurated its embassy, located in the Israeli stock exchange, reported Gulf Today.
The new Israel's foreign minister said the Abraham Accords will bring peace to the region.
The Israel-UAE normalisation agreement is officially called the Abraham Accords Peace Agreement.
It was initially agreed to in a joint statement by the United States, Israel and the United Arab Emirates (UAE) on August 13, 2020.
The UAE became the third Arab country, after Egypt in 1979 and Jordan in 1994, to agree to formally normalise its relationship with Israel as well as the first Persian Gulf country to do so.
Ever since establishing ties, the two countries have expanded their business relations.
After opening flight services, over 200,000 Israelis have visited the UAE, Lipid told media in Abu Dhabi. Most of the tourists made trips to Dubai, reported Gulf Today.