JERUSALEM - Bank Leumi said it had issued a dollar-denominated bank guarantee to First Abu Dhabi Bank (FAB), its first to a United Arab Emirates bank, after Israel and the UAE signed a normalisation deal last month.

Leumi, Israel's second-biggest bank, last month signed memorandums of understanding with FAB as well as Emirates NBD, saying the agreements would help enable the countries to implement economic relations.

It said on Wednesday the guarantee came at the request of Tal Aviation, which represents several international airlines in Israel. Tal signed a cooperation deal with Etihad Airlines that will enable Israelis to fly on Etihad with connections in Jordan, Turkey or Greece.

The bank guarantee to FAB -- one of the largest banks in the Middle East -- would ensure payments for flight tickets purchased by Tal Aviation on Etihad, Leumi said.

(Reporting by Steven Scheer; Editing by Tova Cohen) ((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.thomsonreuters.com@reuters.net; Twitter: @StevenMScheer))