The Arab Coalition, handed over management of ports and coastal security in Hadramout on Wednesday.
It also supplied Yemeni forces with boats equipped with weapons, communication devices and advanced radars.
The handover took place with an official ceremony in Mukalla involving key figures including Yemeni Deputy Prime Minister Salem Ahmed Al Khanbashi, Mohammed Saeed Al Jaber, the Saudi ambassador to Yemen and Matthew Toller, the United States ambassador to Yemen.
The coast of Hadramout stretches over 350 kilometres and has seven major ports and dozens of small harbours.
Lt. Colonel Al Zuwaidi, Joint Task Force Commander of the Arab coalition, said as well as the coalition handing over its responsibilities for Yemen’s coast, it had also trained 26 coastguard officers and 398 recruits and had supplied the service with 32 boats.
He added that the coalition had restored coastguard boats damaged by Al Qaeda and constructed coastal radar stations equipped with AIS devices and ship identification systems. He said a mechanism had also been established to issue licences for commercial ships.
"Today, we are celebrating the readiness of the coastguard forces in Hadramout," Mr Al Juwaidi stated.
The Saudi Ambassador to Yemen said that upgrading capabilities of the Yemeni Coast Guard comes as part of the Coalition's efforts to restore security and stability in the entire Yemeni territories.
Major General Al Bahsani said the Saudi-led Arab Coalition had made great efforts to prevent any terrorist threats in the coasts of Hadramout.
The UAE also recently delivered patrol vehicles to the Coast Guard in Hadramout.