Israel and Bahrain cemented a deal officially establishing relations and signed seven memorandums of understanding Sunday, further opening up the wealthy Gulf region to the Jewish state.

The documentation was signed at a ceremony in the presence of other international dignitaries and reporters, an AFP correspondent said, fleshing out a US-brokered deal the two nations had agreed to at the White House on September 15.

The Israeli delegation, led by National Security Council chief Meir Ben Shabbat, had travelled to Manama from Tel Aviv on the first direct flight between the two countries.

US Treasury Secretary Steven Mnuchin and President Donald Trump's special assistant for international negotiations, Avi Berkowitz, had travelled to Tel Aviv before joining the Israeli delegation's flight to Manama.

But Bahrain's King Hamad bin Isa Al Khalifa, as well as the crown prince and prime minister, were absent from the ceremony, the AFP correspondent said.

On Sunday, the two nations' officials agreed to establish peaceful diplomatic relations and cooperate in the fields of the economy, civil aviation, finance, communications and agriculture, Israel's foreign ministry said in a statement.

It also said it would cooperate with Bahrain's foreign ministry and noted that the two nations had agreed Sunday on the exemption of visa requirements for diplomats.

Bahrain's foreign minister, Abdullatif al-Zayani, said that the decision to normalise ties comes from the "belief in the values of tolerance... in a region whose people have suffered from wars and conflicts".

The two sides will be free to open embassies in each other's countries after the ceremony, Berkowitz said, adding that an Israeli embassy in Manama could open within months.

The flurry of diplomacy between some of Washington's key regional allies has handed Trump a key foreign policy win as he campaigns for re-election ahead of polls in November.

‘Great day’

Upon arrival in Manama, Israel's Shabbat said in Arabic it was a "great day", adding these relations will "most likely benefit both sides".

Zayani, on Sunday stressed that Bahrain calls for direct negotiations between Israel and the Palestinians to end the conflict based on a two-state solution.

Like Israel, both Manama and Abu Dhabi have vehemently anti-Iran foreign policies and Tehran has slammed the normalisation.

The Gulf monarchies have broken decades of Arab consensus that there would be no relations with the Jewish state until it had made peace with the Palestinians.

Security talks

Israel's Prime Minister Benjamin Netanyahu addressed his cabinet on Sunday, lauding what he called the "historic peace agreement" with Bahrain, and saying: "I hope that soon I'll be able to tell you about more countries."

The premier insists more Middle East states want ties with Israel as priorities have shifted.

Countries now value lucrative trade opportunities above positioning on the Palestinian conflict, he has argued.

The US and Israeli delegations are expected to head to Abu Dhabi from Manama to take part in a business meeting, according to the US Department of State.

Security cooperation is also likely to feature prominently in bilateral relations, with Israel's Mossad spy agency chief Yossi Cohen visiting Manama earlier this month to meet Bahrain's security brass.

Regional heavyweight Saudi Arabia has said it will not normalise ties without a resolution to the Palestinian issue despite signs of rapprochement.

But analysts have said Bahrain, heavily linked to Saudi Arabia, would not have agreed to normalise ties with Israel without Riyadh's blessing.

Israel agreed to suspend annexation plans in the occupied West Bank in exchange for normalisation with the UAE, but has expanded settlement activity since the deal was announced.

Israel's parliament on Thursday ratified the agreement with the UAE, and a separate vote on the Bahrain pact is expected once the details are finalised.