Palestinians (Muslims) aside, regardless of what deal is brokered with the UAE or any other Islamic nation, the main problem remains, ultimately they still want Islam to rule what we call Israel, as all Israelis are considered "occupiers" of Islamic land. The reason:
Once Muslims conquer a territory that was held by "infidels," that territory they conquered from its original inhabitants, is "forever" considered Islamic land and should the people they conquered it from, happen to get their land back, they are considered "occupiers" of Islamic land. Islamists considers Islam and its followers to to be superior to all other peoples and must be converted, ruled over, or killed and those ruled over, are considered "second-class" peoples who must obey Sharia Law, or suffer the consequences. It is a religion that is completely incompatible with the concept of freedom and free will and any Muslim who denies this it asked by an infidel is allowed to and will use taqiyya (deception) to protect the religion.