ADEN, Yemen - Yemen's internationally-recognized government on Tuesday signed a power-sharing deal with the Southern Transitional Council (STC) in Saudi capital of Riyadh.

According to the Saudi-owned Arabiya television, Saudi Crown Prince Mohammed bin Salman Al Saud chaired the signing ceremony between the two political rivals in Riyadh.

"This agreement will open a new period of stability in Yemen and pave the way for a big political deal. The kingdom of Saudi Arabia will continue its efforts to meet the aspirations of the Yemeni people," said the Saudi crown prince during the ceremony aired live.

A representative of Yemen's President Abdu-Rabbu Mansour Hadi signed the deal with the STC's political representative in Riyadh.

Several high-ranking Yemeni officials and Arab leaders were present and witnessed the signing ceremony of the deal aimed at ending the conflict over power in the impoverished Arab country.

The head of the Aden-based STC Aidarous Zubaidi said on his official Twitter account that "the Riyadh deal opens a new phase of cooperation and partnership with the Saudi-led Arab coalition."

Martin Griffiths, the United Nations special envoy to Yemen, dispatched his congratulation message to the government of Yemen and the STC on reaching the agreement on the way forward.

"The signing of this agreement is an important step for our collective efforts to advance a peaceful settlement to the conflict in Yemen. Listening to southern stakeholders is important to the political efforts to achieve peace in the country," Griffiths said.

The UN envoy thanked Saudi Arabia for mediating successfully this agreement and for their strenuous diplomatic efforts.

He hoped that this agreement will strengthen stability in Aden and the surrounding governorates and improve the lives of the citizens.

The deal stipulated that a new power-sharing government will operate from the southern port city of Aden, the country's interim capital, and exercise all its tasks in serving the people from there.

The STC is considered as a significant part of the Saudi-led Arab coalition to fight Iran-backed Houthi militias in Yemen.

The impoverished Arab country has been locked in a civil war since late 2014, when the Houthis overran much of the country and seized all northern areas including the capital Sanaa.