Turkish President Recep Tayyip Erdogan said the country is considering withdrawing its ambassador and suspending diplomatic ties with Abu Dhabi.
The joint press conference has been spurred by common opposition against US President Trump's controversial peace plan, which paves the way for Israel to annex territory in the occupied West Bank.
The top Palestinian diplomat says any Israeli annexation of occupied Palestinian territories will be a "crime" in his speech at a meeting of the UN Security Council.
The plan offered up to the United States, Russia, the United Nations and the European Union includes a "sovereign Palestinian state, independent, and demilitarised" with "minor modifications of borders where necessary".
Demonstrators waved Israeli and Palestinians flags and held placards against the occupation of the West Bank and the possible annexation of parts of it.
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