The deal was signed on Sunday by Ethiopia’s Prime Minister Abiy Ahmed and Eritrean President Isaias Afwerki in Saudi Arabia's Jeddah; it is the second peace deal signed between the two states since July. 
The deal was signed in the presence of the United Nations Secretary-General Antonio Guterres, King Salman, and Crown Prince Mohammed bin Salman. 
The Foreign Ministry said that the deal reached between the two countries represents a significant progress to the Horn of Africa region and to the whole continent, as it contributes to ending the old dispute between the two countries. 
The leaders of Ethiopia and Eritrea re-opened crossing points on their shared border for the first time in 20 years, Asmara said, clearing the way for trade between the former foes after a stunning reconciliation. 
Ahmed and Afwerki opened the frontier at Bure, a region that saw some of the fiercest fighting during their 1998-2000 war. 
In July, the two leaders signed a joint declaration of peace and friendship, a day after a historic summit marked a start to the normalization of ties between the longtime foes. 
In a statement, the Foreign Ministry praised the “historic visit” of Ethiopian Prime Minister Ahmed to Eritrea’s capital of Asmara, affirming that the outcome of this visit will certainly contribute to turning the page and starting a new era between the two countries. 
The nations went to war and cut ties in 1998, but in June, Ahmed offered an olive branch to Eritrea, kicking off a rapid rapprochement that has stunned the region and delighted the citizens in both states. 
Ethiopia and Eritrea also agreed to re-open embassies in each other's capitals, Ahmed said in July, after a day of talks with Eritrea's President Afwerki, The New York Times reported. 
The two nations were engaged in a war that took place between 1998 and 2000 over the border town of Badme. The war resulted in tens of thousands of casualties. Although a peace deal has been signed by both countries in 2002, none of them complied with it.