The United Arab Emirates has agreed to resume funding some Yemeni government forces fighting Iran-aligned Houthi rebels in southern Yemen, while Saudi Arabia has agreed to provide air cover for the forces, according to sources in Yemen.

The agreement marks the first tangible sign that the deep rift between the two Gulf powers over Yemen’s future may be easing, as Houthi advances raise concerns across the region, according to a report by The Guardian.

Saudi Arabia has faced daily drone and missile attacks and struggled to maintain normal operations as Houthi strikes disrupt airports and damage energy infrastructure.

Southern Yemeni forces, particularly the Giant Brigades, were previously trained and funded by the UAE and are considered among the most effective units in the fragmented anti-Houthi coalition.

But the UAE withdrew its forces from Yemen in January, cutting off its funding to the groups.

Neither Saudi Arabia nor the UAE has responded to a demand by southern Yemeni separatists for a referendum on independence. The proposed vote would seek to restore the borders that existed between 1967 and 1990, when Yemen was divided into two states.

The separatist Southern Transitional Council (STC) has also yet to agree to allow its forces to fight beyond the boundaries of the former South Yemen. An explicit Saudi agreement to permit a referendum could help lift that restriction.

Yemen’s internationally recognised government, based in Aden, announced a counteroffensive last week to drive Houthi forces out of the capital, Sana’a. However, the campaign has so far made limited progress around Majzar, near Marib, and the Bab al-Mandab Strait.

There has been no direct contact between STC leader Aidarous al-Zubaidi and Saudi officials. Zubaidi fled to Abu Dhabi in January after a failed STC attempt to seize control across southern Yemen and announce plans for a referendum on independence within two years.

Saudi Arabia responded by bombing shipments of weapons allegedly destined for STC forces. The UAE subsequently announced its withdrawal from the conflict, while the Saudi-backed Yemeni government said it would seek to prosecute Zubaidi for treason.

UAE officials are increasingly concerned about the course of the conflict. Despite suffering heavy losses, the Houthis remain determined to capture Taiz and Marib, two major cities outside the territory of the former South Yemen.

On Friday, two Houthi missiles struck Aden airport as a passenger aircraft was preparing for take-off. No casualties were reported.

The missiles landed about 500 metres from the Yemenia Airways aircraft and around 100 metres from the middle of the runway, Yemen’s information minister, Moammar al-Eryani, said.

The strike came a day after a Houthi attack on a presidential palace in Aden killed at least five people and injured 16.

Egyptian President Abdel Fattah al-Sisi said he would convene an emergency parliamentary session to seek authorisation for the country’s military to act in defence of Saudi Arabia. He stressed that Egypt would take no offensive action and would limit its role to defending the kingdom.

Meanwhile, discussions are continuing in the United Kingdom over a Saudi request for additional military assistance. Britain has sent an RAF Voyager air-to-air refuelling aircraft, but regional diplomats are pressing London to provide further support. Some have also questioned whether Riyadh should coordinate more closely with other Gulf states, including Oman and Qatar.

The legal implications of broader British backing for the Saudi-led air campaign are also under consideration. In 2019, the UK Court of Appeal ruled that the government had acted unlawfully by issuing arms export licences for use in Saudi Arabia’s 2015–16 bombing campaign in Yemen.

The Campaign Against Arms Trade argued that the UK had failed to properly assess potential Saudi violations of international humanitarian law, forcing the government to revise its procedures.

Saudi Arabia says it has substantially changed its methods since then and maintains that its current actions constitute self-defence under the United Nations Charter.

On 15 October, the UN Security Council adopted a presidential statement affirming Saudi Arabia’s right to act in self-defence in accordance with international law.

The death toll from the war since August remains unclear. More than 200,000 people have been displaced, according to the UN, placing growing pressure on humanitarian organisations operating from Aden.