A deal reached in Switzerland last month to exchange 181 government forces for 706 rebels, just before the major Muslim holiday of Eid al Fitr.
Recent diplomatic rapprochement between Riyadh and Tehran has paved the way for the swap of nearly 900 detainees held by rival forces in war-torn Yemen.
More than 300 prisoners scheduled to fly between Sanaa and Aden on Friday, while detainees will also be released in Marib and Mokha, as well as in Riyadh and Abha in neighbouring Saudi Arabia.
Saudi delegation's arrival comes roughly a month after China helped broker a surprise rapprochement between Saudi Arabia and Iran.
Rebel officials say 13 prisoners were released in exchange for a Saudi prisoner, and meanwhile, delegation from Oman arrives in Sanaa to hold talks with Houthi leaders about peace process.
The move signals that regional rifts are easing after rivals Saudi Arabia and Iran agreed to restore relations last month following years of hostility and backing opposite sides in Middle Eastern conflicts, including Yemen.
Two former German soldiers attempted to set up a paramilitary unit of 100 to 150 people in order to take control of an area held by the Houthi rebels in Yemen.
UN special Yemeni envoy said warring sides failed to agree on an extension to a ceasefire in the Middle Eastern country.
Two separate attacks on Yemen's Zinjibar and Ataq leave nine soldiers dead while three other militants were also killed in the gunfire.
The International Committee of the Red Cross has facilitated the release and repatriation of nearly 100 Yemeni prisoners.
Riyadh cut ties with Tehran in 2016 after Iranian protesters attacked Saudi diplomatic missions in Iran after the kingdom executed Shia cleric Nimr al Nimr.
Hans Grundberg is scheduled to meet Houthi rebel officials during his first Sanaa visit since taking office in September.
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