This has got to be crushing for Palestinian morale, that despite making no real concessions at all the UAE and likely Oman & Bahrain are normalising ties with Israel. The unified Arab anti-Israel front is clearly gone forever.
Of course, this latest news just formally confirms a reality that has been the case for a while now.
But the fact that the UAE feel confident enough to do it openly (ie they don’t fear a large backlash from their own citizens or other Arab states) demonstrates how precarious - almost hopeless- the Palestinians position is.