ANKARA, Dec 30 (Reuters) - Turkish President Tayyip Erdogan said on Tuesday that Israel's decision to formally recognise of the self-declared Republic of Somaliland was an illegal and unacceptable step, adding that it was trying to drag the horn of Africa into destabilisation.

Speaking at a press conference alongside Somali counterpart Hassan Sheikh Mohamud in Istanbul, Erdogan also said Turkey was planning on starting offshore energy drilling off the coast of Somalia in 2026 as per a bilateral agreement, adding that it was adding two new drilling vessels to its fleet.

CAIRO, Dec 30 (Reuters) - The United Arab Emirates' defence ministry said on Monday it has ended the mission of its counterterrorism units in Yemen voluntarily, state news agency WAM reported.

It said the decision came after a comprehensive assessment following recent developments.

(Reporting by Menna Alaa El-Din and Muhammad Al Gebaly; Editing by Andrew Heavens)

Yemen has been at war since Iran-backed Houthi rebels ousted the government in 2014, triggering a Saudi-led military intervention, but a new internal conflict has been brewing in recent weeks.

The face-off involves rival armed factions loosely grouped under the government but separately backed by the United Arab Emirates and Saudi Arabia.

The UAE on Tuesday said it was pulling its remaining forces out of Yemen, following a Saudi demand to withdraw within 24 hours as tensions escalate over a sweeping offensive by Abu Dhabi-backed separatists, who have refused to pull back.

MADRID, Dec 30 (Reuters) - Spain has granted Airbus exceptional permission to produce aircraft and drones using Israeli technology at its Spanish plants even though it banned military and dual-use products from Israel two months ago over its war in Gaza.

Approved last Tuesday by the cabinet and defended by several ministers this week, the exemption reflects the pressure from companies and domestic interests that some of Europe's toughest critics of Israel's recent war have faced as they attempt to impose trade sanctions.

Dec 30 (Reuters) - The United States and its partner forces killed or captured nearly 25 Islamic State operatives since it launched retaliatory strikes in Syria earlier this month, the U.S. military said on Tuesday.

The U.S. carried out large-scale strikes against dozens of Islamic State targets in Syria on Dec. 19 in retaliation for an attack on American personnel.

Dec 30 (Reuters) - Syrian security forces imposed a curfew on Latakia city, a bastion of the country's Alawite minority, state media reported on Tuesday, days after four people were killed in protests that spiralled into violence.

Syria has been rocked by several episodes of sectarian bloodshed since longtime leader Bashar al-Assad, who hails from the Muslim Alawite community, was ousted by a rebel offensive last year and replaced by a Sunni-led government.

State media said the curfew was set to last from 5 p.m. (1400 GMT) on Tuesday until 6 a.m. (0300 GMT) on Wednesday.

By Elwely Elwelly

DUBAI, Dec 30 (Reuters) - Iran's government said on Tuesday it would seek dialogue with protest leaders after demonstrations in Tehran and other cities over a plunge in the currency's value that has accelerated inflation, with the central bank chief resigning.

Protests, which included shopkeepers in Tehran's Grand Bazaar, were held on Sunday and Monday according to Iranian state media, the latest demonstrations in the Islamic Republic where bouts of unrest have repeatedly erupted in recent years.

By Yousef Saba

DUBAI, Dec 30 - A Saudi airstrike on what it said was a UAE-linked weapons shipment in Yemen on Tuesday marked the most significant escalation between Riyadh and Abu Dhabi to date. Once the twin pillars of regional security, the two Gulf heavyweights have seen their interests diverge on everything from oil quotas to geopolitical influence.

Here is a timeline of how the relationship has evolved:

By Yomna Ehab, Nayera Abdallah and Maha El Dahan

Dec 30 (Reuters) - Saudi Arabia said on Tuesday its national security was a red line and backed a call for UAE forces to leave Yemen within 24 hours, hours after a Saudi-led coalition carried out an airstrike on the southern Yemeni port of Mukalla.

By Yomna Ehab and Nayera Abdallah

Dec 30 (Reuters) - The head of Yemen's presidential council called on Tuesday for all United Arab Emirates forces to leave the country within 24 hours, shortly after an air strike by the Saudi-led coalition at the southern port of Mukalla.

The coalition said the strike targeted foreign military support for the UAE-backed southern separatists, whose offensive this month pitted the Southern Transitional Council (STC) against Saudi-supported Yemeni government troops, bringing the two Gulf allies closer than ever to an all-out conflict.