The UAE has signed a deal to build a $100 million power plant in Yemen's southern city of Aden.
The agreement was signed at the headquarters of the Khalifa bin Zayed Al Nahyan Foundation for Humanitarian Works with Yemen's Ministry of Electricity.
Ahmed Juma Al Zaabi, Minister of Federal Supreme Council at the Ministry of Presidential Affairs, and Vice President of the Khalifa Humanitarian Foundation, said the project reflects the historic ties between the two countries and the UAE's intent to stand by Yemen.
The UAE and Yemen face a shared challenge to "rebuild state institutions and face catastrophic economic and humanitarian consequences," he said.
The deal was agreed during Yemeni Prime Minister Dr Maeen Abdulmalik's visit to Abu Dhabi as a part of the UAE's efforts to support Yemen's energy infrastructure. The power station has a planned capacity of 120MW. The scheme is set to provide electricity to meet the demands of around 2.5 million Yemenis.
It is one of the largest projects planned by the Khalifa Humanitarian Foundation in Yemen, whose work also includes building schools and hospitals in liberated parts of the war-torn country.
The announcement comes amid an uptick in violence in the country as a UN-led peace push falters despite the rebels' unilateral withdrawal from the lifeline Red Sea port of Hodeidah last month.
The Yemeni government has accused UN envoy Martin Griffiths of bias towards the rebels despite the Security Council's expression of renewed support in him on Monday.
The coalition intervened in support of the Yemeni government in 2015 when President Abdrabu Mansur Hadi fled into Saudi exile as the rebels closed in on his last remaining territory in and around second city Aden.
Mr Abdulmalik visited Wahat Al Karama, Abu Dhabi's monument to fallen soldiers, on Tuesday, in which he wrote in the visitor's log of his respect for Emiratis who gave their lives for the country.