Agencies | Abu Dhabi:
In a landmark development for the global energy sector, the United Arab Emirates (UAE) on Tuesday announced its formal withdrawal from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, ending nearly six decades of membership. The decision will come into effect from May 1, 2026, and is expected to significantly alter the balance of power in global oil markets.
In an official statement issued through state news agency WAM, the UAE’s Energy Ministry said the move followed a “comprehensive review” of its production strategy. Abu Dhabi has long expressed concerns that OPEC+ production quotas were constraining its ambitious plans to expand output capacity to 5 million barrels per day by 2027.
By exiting the cartel, the UAE regains full control over its oil production policies, enabling it to respond more flexibly to global demand. The ministry emphasised that the decision was taken in the “national interest,” allowing the country to better monetise its vast hydrocarbon reserves while supporting its long-term economic diversification goals.
The timing of the exit is particularly significant, coming amid heightened geopolitical tensions in the Middle East, including ongoing instability involving Iran and disruptions in key maritime routes such as the Strait of Hormuz. Analysts point to growing friction between the UAE and Saudi Arabia—OPEC’s de facto leader—over security concerns and differing energy strategies.
The move is also being viewed as a strategic alignment with Western market-driven energy policies, and could be seen as a diplomatic boost for the United States, whose leadership has often criticised OPEC for influencing oil prices.
Experts warn that the departure of the UAE—one of OPEC’s key producers with substantial spare capacity—could weaken the cartel’s ability to regulate supply and stabilise prices. There are also concerns that it may trigger competitive overproduction among remaining members, potentially leading to market volatility.
As the UAE charts an independent course in energy policy, the future of OPEC+ now faces renewed uncertainty, with its cohesion and global influence under increasing strain.
