In a stunning escalation of tensions within the Saudi-led coalition, the United Arab Emirates announced Wednesday it will withdraw its remaining counterterrorism forces from Yemen following a Saudi airstrike on the strategic port city of Mukalla. The move signals deepening rifts between the two Gulf allies, who have jointly battled Houthi rebels for over a decade.

The incident unfolded when Saudi warplanes targeted Mukalla's port on December 29, alleging the strikes hit a UAE-linked weapons shipment bound for southern separatists backed by the Southern Transitional Council (STC). UAE officials rejected the claims, stating the docked vessels from Fujairah carried only military vehicles for their own units.

Yemen's presidential council, aligned with Saudi Arabia, responded swiftly by canceling a defense agreement with the UAE and issuing a 24-hour ultimatum for Emirati troops to depart. Council head Rashad al-Alimi declared a 90-day emergency to address what he called "internal threats" from Abu Dhabi-supported factions.

This clash stems from diverging goals in Yemen's civil war, which erupted in 2015. While Saudi Arabia seeks a unified government under its influence, the UAE has pivoted toward STC separatists to secure the south against terrorism and Iranian proxies. The UAE largely exited combat roles in 2019 but maintained specialized units—now all are leaving amid accusations of arming advances into Saudi-border regions like Hadramout. Riyadh has massed 15,000 troops along the frontier, warning of further action if separatists encroach, while the UAE insists its pullout protects ongoing anti-terror efforts without abandoning Gulf security ties.

The withdrawal could embolden Houthis in the north and stall fragile peace efforts, exacerbating Yemen's humanitarian catastrophe. U.S. officials called for restraint, and analysts predict urgent backchannel diplomacy to salvage the coalition before oil shipping lanes face new risks. As GCC unity frays, this rare public spat raises questions about proxy wars reshaping the Middle East.