Dubai conglomerate Al Habtoor Group is to open a representative office in Israel, it said on Sunday.

The United Arab Emirates and Israel last week agreed to establish bilateral diplomatic and trade ties, which officials have said would create significant economic opportunities.

The family-owned conglomerate portfolio covers the hospitality, construction, education and automotive sectors.

Habtoor Group, headed by prominent Emirati businessman Khalaf Ahmad al-Habtoor, is in talks with Israeli airline Israir to launch direct commercial flights to the UAE.

"We are preparing to reveal a few collaborations in the coming days," he said in a statement.