The war in Gaza has cooled Israeli business activity with the United Arab Emirates, with the once-celebrated relationship now conducted away from public scrutiny amid anger in the Arab world over the conflict.

The UAE became the most prominent Arab state in 30 years to establish formal ties with Israel under a U.S.-brokered agreement in 2020, dubbed the Abraham Accords. It has maintained the relationship throughout Israel's more than six-month war in Gaza.

In the wake of the accords, Israeli entrepreneurs began flocking to the Gulf state on direct flights from Tel Aviv, establishing new business ties and expanding existing relationships that were once kept a secret. Deals announced before the war included investments in cyber security, fintech, energy and agri-tech.

Ten Israeli officials, executives and entrepreneurs told Reuters that business ties with the influential Gulf state remain intact but, in a sign of how the conflict has dented enthusiasm, they declined to discuss any recent deals.

"It's still happening. It's happening less; it's less in your face," said Raphael Nagel, a German Jewish entrepreneur living in the UAE who heads a private business group that promotes business ties between Israel and the Gulf Arab state.

Six bankers and lawyers in the UAE also said that business ties between Israeli and Emirati companies have endured the war but that few new deals were happening.

The UAE government was wary about promoting relations with Israel, they said. In Israel, meanwhile, many businesses have had staff called up for military service, impacting operations.

A UAE official did not directly respond to Reuters' questions about how the economic relationship with Israel had been affected by the war. The official said, however, the UAE's diplomatic and political dialogue with Israel had facilitated humanitarian efforts to assist the people of Gaza.

The UAE is the only Arab state still hosting an Israeli ambassador. Tel Aviv recalled its diplomats from other Arab states it has ties with following the Oct. 7 attack by Hamas that prompted its invasion of Gaza.

Israel's foreign ministry did not respond to a request for comment.

After establishing formal diplomatic ties in 2020, Israel and the UAE rapidly built a close economic partnership, unlike the decades-long peace deals with Egypt and Jordan that have failed to establish significant business relations. A trade deal was signed in 2022.

Last year, trade grew 17% to reach $2.95 billion, according to data from the Israel Central Bureau of Statistics. Despite cooling in the wake of the war, trade remained 7% higher year-on-year in the first quarter of 2024, the bureau said.