The United Arab Emirates (UAE) announced it would withdraw its remaining forces from Yemen following an ultimatum.

The country’s Defense Ministry, in a statement via its state-run WAM news agency, cited "recent developments and their potential repercussions on the safety and effectiveness of counter-terrorism operations." 

However, it did not say when the withdrawal would occur.

Earlier on Tuesday, the leader of Yemen's presidential council announced a state of emergency after a Saudi Arabia-led strike on the southern port of Mukalla.

Saudi Arabia said the strike targeted an arms shipment from the United Arab Emirates meant to reach Yemeni separatists.

In response, the UAE Foreign Ministry called for "restraint and wisdom," and denied that it shipped weapons to separatists.

UAE forces asked to leave Yemen

The Saudi-backed presidential council issued a 72-hour ban on all border crossings in its territory except those allowed by patron Riyadh, while also calling for UAE forces to leave its territory in 24 hours.

The security pact between Yemen and Abu Dhabi has also been canceled by the council.

The Saudi military announced the strike in a statement published by the state-run Saudi Press Agency, saying it targeted a shipment that arrived to Yemen from the Fujairah, a city located on the UAE's eastern coast.

According to the statement, the ships' crew "had disabled tracking devices" on them and unloaded "large amount" of weapons and vehicles for the STC's armed forces.

The UAE denied that the shipment targeted in the Saudi attack included weapons, but acknowledged transferring vehicles. It did not say it would withdraw from Yemen as demanded.

Why did Saudi Arabia strike Yemen?

The statement labeled the weapon shipment an "imminent threat and an escalation that threatens peace and stability," also adding the military had carried out the attack during the night to reduce collateral damage.

The Saudi Foreign Ministry said its "sisterly state" UAE's actions in Yemen were "extremely dangerous."

It wasn't immediately clear whether other armies took part in the attack other than the Saudi military.

Separatist group Southern Transitional Council (STC) are backed by the UAE, while Yemen's presidential council are backed by Riyadh.

UAE government spokesperson Afra Al Hameli said Tuesday that Abu Dhabi "affirms its total rejection of the allegations related to fuelling the Yemeni conflict." 

The attack signals the escalation of tensions between Saudi Arabia and the UAE, with the two countries backing competing sides in the war against the Iranian-backed Houthis.

Edited by: Farah Bahgat, Saim Dušan Inayatullah