The UAE - like many Arab states before it - is using the Palestinians (we stopped the annexation!) as a fig leaf for a relationship it has had with Israel for years. It will portray itself as a pan-Arab hero that made a bold move for the sake of the region.
Israel will continue to demolish, confiscate and annex - without having to announce it on a megaphone. The UAE merely normalizes the status quo.
Abbas is probably throwing things around his office at the Muqata at the moment, swearing at his arch nemesis Mohd Dahlan, who most probably had a hand in this.
In the meantime, Netanyahu gets a way out of the whole annexation quagmire he threw himself into - while Trump pats himself on the back for getting at least one peace deal right.
Palestinians on social media are already wondering how long it will take Saudi to follow suit?
So the UAE will have to open an embassy now in Israel. Will it open one in Jerusalem (the “eternal capital”?) Will cars with Emirati license plates become a mainstay of Tel Aviv’s streets?
Annnndddd of course Egypt’s Sisi lauds the UAE-Israel normalization deal
Like so many moves on the ground, this makes the Arab Peace Initiative moot and the two-state solution more irrelevant and unattainable as ever. A Palestinian state is not even mentioned. The charade is over.
I simply must add that my phone autocorrected “charade” to “shatafeh” and I am dead.
Notice that the statement says that Muslims “who come in peace” can visit Al Aqsa. Islamophobic innuendo aside, the UAE is asserting Israel’s sovereignty over Islamic holy places. Also and related: What does Jordan make of this? 
The Emiratis are spinning this as a historic tit-for-tat that is beneficial to the Palestinians
