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On Sunday, a senior Palestinian official said that the Palestinian government may face a severe financial crisis for the next six months due to the lack of international aid and Israel's withholding of tax revenue.
Almost one year after the UAE formally recognised Israel, the Gulf state said it is looking to expand trade with the Jewish state to more than $1 trillion over the next decade.
Rights groups have called on PayPal to stop denying its services to Palestinians in the West Bank and Gaza, saying that it was engaging in 'digital discrimination' and entrenching Israeli occupation.
The UAE-South Korea agreement seeks to be a "mutually beneficial liberalization of trade in goods, services and investment", according to a joint statement.