No, it's not on target, it's absolutely false. UAE realized that after severing ties with the Taliban in September 2001, forging pathways with countries like Israel and the United States will open up doors of investment and business opportunities. It's how democracy and freedom is allowed to flourish, and ways in which to liberate nations without firing a single shot.
You are wrong. The article you posted is from 2004 and it never came to fruition. Here is the current UAE position on Israel courtesy of Al Jazeera:
UAE denies Israeli mission in Dubai
Sunday 04 September 2005, 19:33 Makka Time, 16:33 GMT
The UAE "is fully committed to the Arab peace initiative announced at the Beirut and Algiers summits (in 2002 and March this year) which links any normalisation of ties with Israel with recognition of the Palestinian people's legitimate rights, including their right to the establishment of an independent state with holy Jerusalem as its capital", the source said.