Sources at the British Embassy told Yemen Post that the embassy will remain closed for an undisclosed period.
The Yemen Interior Ministry for its part said that the attack holds the fingerprints of Al-Qaeda.
No side has yet announced its responsibility for the attack.
One local was reported injured. The injuries were light according to Yemen Post sources.
The attack was aimed at the British Ambassador.
The Ambassador, Tim Torlot, 52, became UK Ambassador to Yemen in 2007. His previous postings include deputy head of mission at the British Embassy in Baghdad, Iraq.