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Protesters demonstrate against terrorism in southern Yemen across from the United Nations building, in New York City, yesterday. Leaders and diplomats from around the world are in New York City for the United Nations yearly General Assembly. Image Credit: AFP

United Nations:  Nations concerned about the growing strength of Al Qaida and other extremists in Yemen on Saturday called for economic, social and political reforms to stabilise the country.

The so-called Friends of Yemen group, which met on the edge of the UN General Assembly, called for creation of a development fund for Yemen and better coordination of foreign aid.

A key aim will be supporting the recently adopted International Monetary Fund programme to restructure Yemen's economy, it said in a communique.

The ministers also backed the opening of an office of the Gulf Cooperation Council in the Yemen capital Sana'a, saying it would "help all donors to plan, coordinate and deliver assistance to Yemen more efficiently."

The GCC groups most of Yemen's neighbours — Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE and Oman.

The terror threat from Yemen has escalated in the past year, with estimates that some 300 Al Qaida members or cells are operating there. Al Qaida in the Arabian Peninsula, which is based in Yemen, is believed to have been behind the failed terrorist attempt on Christmas Day to take down a passenger jet.

Alan Duncan, Britain's minister of state for international development, told reporters after the meeting that Yemen-based terrorism was a growing concern.

"If you're looking at a fragmented and weak government with Al Qaida presence inside the country, this is a very potent cocktail for danger," Duncan said.

While a number of countries, including the United States and Britain, are providing security assistance, the "friends" meeting of ministers focused on development aid, he said.

"The focus today was primarily on the economic, social and governmental improvements we need to see," Duncan said.

He said that the ministers want to see donors better coordinate their aid to Yemen. He noted that some $3 billion (Dh11 billion) pledged at a 2006 donors' conference has not yet been spent in Yemen "because the country has not been able to snow the capacity to use the funds."

William J. Burns, undersecretary for political affairs at the US State Department who attended the meeting, said there was "strong cohesion" among the "friends" countries.

He cited "a real sense of urgency in providing assistance, both in the sense of meeting security needs but also in terms of long-term development needs."

Duncan said the session in New York was the second ministerial-level meeting of the "friends," following January's meeting in London, and that a third was to be held in Riyadh, Saudi Arabia, probably next February.