DUBAI/SANAA (Reuters) - Yemen's dominant Houthi group and its army allies fired a Scud missile at Saudi Arabia which the kingdom said it shot down on Saturday, in a major escalation of two months of war.

Arab air strikes and shelling after the attack killed 38 Yemenis in provinces near Saudi Arabia, according to reports in the Houthi-controled state news agency Saba which could not be immediately confirmed.

In the first reported use of a ballistic missile in the conflict, the Scud was fired on Saturday morning at the city of Khamees Mushait in the kingdom's southwest and was intercepted by two Patriot missiles, a statement by the Saudi military said.

The Yemeni forces fired at least 80 missiles against the Saudi army's positions in Jizan region.

There are still no reports on the extent of the Saudi casualties in the border areas.

The attack came after Saudi warplanes pounded the areas of Bani Sayah and Sahar in Sa'ada province and claimed the lives of more than 70 civilians.

Earlier today, the Yemeni army fired a Scud missile into Saudi Arabia, forcing the monarchy's officials to cancel all Jizan and Abha flights.

According to media reports, the missile was fired early Saturday morning at the Saudi regime's largest air force base located in the city of Khamees al-Mushait in the kingdom's Southwest.

Saudi Arabia claimed that it had intercepted the Scud by two Patriot missiles. This is while the airport terminals of Jizan and Abha were evacuated and flights cancelled following the attack.