JERUSALEM (Reuters) - The United States, Israel and the United Arab Emirates will set up a fund to encourage private-sector investment and regional cooperation, U.S. International Development Finance Corporation head Adam Boehler said on Tuesday.

Speaking at a ceremony to mark the arrival of the first official UAE delegation in Israel, Boehler envisaged funding to enable the modernisation of Israeli-operated checkpoints for Palestinians.

(Writing by Dan Williams; Editing by Catherine Evans)