Yemen-based al-Qaeda branch has claimed its responsibility for the car bombing blast that claimed the lives of 28 soldiers in the southern Yemeni province of Hadramout.

A source in the al-Qaeda has confirmed that it's responsible for the suicidal attack that targeted military personnel mostly belonging to the elite Republican Guards which is commanded by the former President Ali Abdullah Saleh's elder son, Ahmed, Reuters has reported.

"The attack is a retaliation of the continued crimes of the Republican Guards, Reuters quoted al-Qaeda source as saying.

The attack in front of the Presidential Palace in al-Mokala, Hadramout provincial capital has overshadowed the swearing in ceremony of the new Yemeni president Abdu Rabu Mansour Hadi.

The assault came only a few hours after the new President has vowed in the Yemeni Parliament that there would be no letup in the fight against al-Qaeda terrorists, who took advantage of the unrest that wracked the country for the past year, in the south of the country.

Al-Qaeda has strengthened its foothold in the southern and east southern provinces of the poor, fragmented state as it has seized control of some areas.

Yemen is an ally of western nations in their war against the terror network, however cooperation on fighting terrorism has been disrupted due to the political turmoil that dragged for over a year.

Saleh has returned to the Yemeni capital of Sana'a early on Saturday's morning to attend the official power handover ceremony on Monday.