Israel and Bahrain hope to seal a free trade agreement before the end of the year, officials from both countries said on Monday.

Israel normalized diplomatic relations with Bahrain and its Gulf neighbor the United Arab Emirates (UAE) two years ago under U.S. sponsorship. While economic ties with the UAE have since taken off, Israel’s trade with Bahrain has lagged far behind.

“We’re optimistic and hopeful that we will close the deal by the end of the year,” Bahraini Minister of Industry and Commerce Zayed Alzayani said during a visit to a leading Israeli venture capital firm, Jerusalem Venture Partners (JVP).