- UAE exits OPEC+ effective May 1, ending decades-long membership.
- Decision driven by production limits and strategic regional divergence.
- Country seeks greater autonomy in energy output and investment.
The United Arab Emirates has announced it will exit OPEC and the wider OPEC+ grouping from May 1, ending nearly six decades of membership. The decision, confirmed via its state-run news agency, comes amid growing friction with Saudi Arabia over oil production limits and broader regional strategy. Abu Dhabi said the move reflects its long-term economic vision and evolving energy profile, signalling a shift towards greater autonomy in managing output and investments.
Exit Signals Strategic Shift
The UAE said its withdrawal reflects a recalibration of its economic priorities, including increased investment in domestic energy production and a more flexible approach to output. It emphasised that it would continue to act as a responsible player in global energy markets, pledging to raise production gradually in line with demand.
The country has long been frustrated by production caps within OPEC, arguing they restrict its ability to fully utilise its expanded capacity. The decision formalises a divergence that had been building for several years.
Rift With Saudi Arabia Deepens
Relations with Saudi Arabia have become increasingly strained, particularly as both countries compete for foreign investment and regional influence. Riyadh’s aggressive economic reforms under Crown Prince Mohammed bin Salman have intensified competition with Abu Dhabi.
Differences have also emerged in regional security matters, including the conflict in Yemen, where the two nations were once aligned but later drifted apart. Recent tensions have underscored the growing gap in their strategic priorities.
Long OPEC Association Ends
The UAE first joined OPEC in 1967 through Abu Dhabi and became a full member after its formation in 1971. Over time, the cartel’s influence has evolved, particularly as non-OPEC producers such as the United States expanded output.
Despite leaving the alliance, the UAE remains among the world’s top oil producers and is expected to retain a significant role in shaping global energy supply dynamics.
