The MEA spokesperson was keen to assert that welcoming the deal would not have any impact on India's "traditional support for the Palestinian cause".
Tel Aviv said it has agreed to "delay" the annexation of Palestinian lands in the occupied West Bank, but the plan "remains on the table".
British Prime Minister Boris Johnson welcomed the normalization of relations between the two states, as well as Israel's decision not to annex parts of the West Bank.
"The Palestinian leadership rejects and denounces the UAE, Israeli and USA trilateral, surprising, announcement", said Abbas's spokesman Nabil Abu Rudeineh in the West Bank city of Ramallah.
"It was my profound hope that annexation did not go ahead in the West Bank and today's agreement to suspend those plans is a welcome step on the road to a more peaceful Middle East", Johnson said on Twitter.
The trilateral declaration, which was announced by US President Donald Trump on Thursday, proclaims the establishment of diplomatic ties between Israel and the UAE, making the Emirates the first Gulf state to do so.
Hundreds of Emiratis are calling for the prosecution of foreign residents who expressed disagreement with the UAE-Israel normalization deal.
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U.S. President Donald Trump on Thursday announced a "historic" deal between Israel and the United Arab Emirates to establish diplomatic relations that will pause Israel's efforts to annex parts of the West Bank claimed by Palestinians.
Palestinian President Mahmoud Abbas recalled the Authority's envoy from Abu Dhabi and demanded that the Arab League address the issue of the agreement in an emergency meeting.
Senior White House officials on Friday sought to use the momentum from a historic deal between Israel and the United Arab Emirates to appeal to more Arab and Muslim countries to set aside long-standing tensions and make similar agreements.
Bahrain hosted a US -led Middle East conference a year ago aimed at raising money for the Palestinians and Jordan as part of Trump's Middle East peace initiative.
The new deal is a significant shift in relations between the UAE and Israel.
The UAE has grown to become a key military ally to the USA and has looked to Israel in its efforts to bolster Gulf relations amid increasing concerns of Iran.
"While betraying the Palestinian cause to serve its narrow interests, the UAE is trying to present this as a kind of act of self-sacrifice for Palestine", the Turkish Foreign Ministry said, according to DW. Tehran said that the Palestinians have been stabbed in the back with this accord.
"The Secretary-General welcomes this agreement, hoping it will create an opportunity for Israeli and Palestinian leaders to re-engage in meaningful negotiations that will realise a two State-solution in line with relevant United Nations resolutions, global laws and bilateral agreements", the statement said on Thursday.