In January 2021 it was announced that the Israel-UAE visa-free policy will become operational in July 2021:
The United Arab Emirates on Monday informed the Foreign Ministry that it was pushing off the implementation of a visa waiver agreement with Israel until July 1 due to the coronavirus pandemic.
However Timatic is still saying that a visa is required for UAE nationals visiting Israel and Israeli nationals visiting the UAE. The only updates from July I can find relate to UAE opening a consulate in Tel Aviv. The UAE consulate has a page on visas that confirms a visa is required for Israeli citizens.
So... what happened to the agreement? Is it now cancelled permanently?