The appointment of Khaled Bahah yesterday, Yemen's ambassador to the United Nations, is part of a peace deal brokered by the United Nations after Shiite Houthi rebels swept through the capital Sanaa and took over army barracks, ministries and vital state institutions last month.
Their takeover came amid increasing terrorist attacks carried out by al-Qaida in the Arabian Peninsula, which the Security Council condemned.
Under terms of the UN deal, Hadi was to appoint a new prime minister after securing consensus of various political factions.
Houthis, the rival Islah party, and representatives of a southern movement signed the deal.
Also Read
Yemen, the Arab world's poorest and perhaps most chronically unstable nation, has faced a troubled transition after long-ruling President Ali Abdullah Saleh agreed to step down after a 2011 uprising inspired by the Arab Spring.
He has also previously served as oil minister and ambassador to Canada.
Unlike most Arab Spring countries, Yemen embarked on a national dialogue and all political parties agreed on a road map for a political transition after months of talks that ended on Jan. 25.
Hadi pledged to follow up by establishing commissions to draft a constitution and work out details of a new federation for the country, but the road map remains stalled and under threat.
The Security Council, after an emergency meeting that ended late yesterday, expressed deep concern at developments in Yemen, urged the new government to expedite reforms especially in the army and security forces, and said it is prepared to impose sanctions on "spoilers" threatening the country's peace, security and stability.