The United Arab Emirates, of one the oil-rich Gulf State, has announced its decision to exit the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance, effective May 1, 2026.
The move represents a major shift in the country’s oil production policy and its approach to engaging with the global energy market.
In an official statement on Tuesday, the UAE government said the move followed a comprehensive review of its production strategy, current capacity, and long-term economic priorities.
The government added that the exit aligns with the country’s national interest and evolving energy profile, including increased investment in domestic oil production and broader energy diversification.
UAE’s reasons for the exit
The UAE said its withdrawal is aimed at improving its ability to respond to changing global energy demand without being bound by group production quotas.
“This decision reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner,” the statement read.
The country added that it will continue to act as a “reliable and responsible energy partner,” noting that it plans to bring additional oil supply to the market gradually, in line with demand conditions.
While reaffirming its commitment to market stability, the UAE said it would now focus on balancing oil production with investments across gas, renewables, and low-carbon energy.
Background: UAE’s membership in OPEC
The UAE joined OPEC in 1967 through Abu Dhabi and remained a member after the country’s formation in 1971. Over the decades, it played a role in collective production decisions aimed at stabilising global oil prices.
However, OPEC’s framework requires members to adhere to agreed output limits, a structure designed to manage supply and influence prices in international markets.
In recent years, the UAE has expanded its production capacity significantly, positioning itself among the few producers capable of increasing output quickly when needed. This has placed it at times at odds with group quotas.
The country acknowledged its long-standing relationship with the organisation, stating, “We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success.”
More insights
The announcement also comes at a time of heightened uncertainty in global oil markets, including supply disruptions linked to tensions around the Strait of Hormuz, a key shipping route for crude exports.
The UAE noted that “near-term volatility” continues to affect supply dynamics, although it expects global energy demand to grow over the medium to long term.
It added that a stable energy system requires “flexible, reliable, and affordable supply,” which it said has guided its recent investments in production capacity.
Meanwhile, OPEC+ which includes major producers such as Saudi Arabia and Russia has relied on coordinated output cuts in recent years to manage price fluctuations.
The UAE’s departure removes one of the group’s key producers at a time when supply coordination remains central to its strategy.
What you should know
OPEC and the wider OPEC+ alliance coordinate oil production among member countries to influence global supply and maintain price stability. Members agree on output targets, which are periodically adjusted based on market conditions.
The UAE is considered one of the world’s lower-cost oil producers, with significant reserves and the capacity to scale production. Its exit means it will no longer be bound by OPEC production quotas, allowing it to determine output independently.
The country has also increased investments across the energy value chain, including natural gas and renewable energy projects, as part of its long-term economic strategy.
“We made significant contributions and even greater sacrifices for the benefit of all. However, the time has come to focus our efforts on what our national interest dictates,” the statement read in part.
Despite its exit, the UAE said it will continue to engage with global energy markets and work with both producers and consumers to support stability.
