UAE Announces Decision to Exit OPEC and OPEC+

SadaNews Economy - The United Arab Emirates announced on Tuesday its decision to exit the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, effective from May 1, 2026, according to the official UAE News Agency (WAM).

This decision aligns with the UAE's long-term strategic and economic vision and the development of its energy sector, including accelerating investment in local energy production, reinforcing its commitment to being a responsible and reliable producer that anticipates the future of global energy markets.

This decision came after a thorough review of the UAE's production policy and its current and future capacities, considering the national interest and the country's commitment to actively contribute to meeting the urgent needs of the market, amid ongoing geopolitical fluctuations over the short term due to disruptions in the Arabian Gulf and the Strait of Hormuz that affect supply dynamics, with fundamental trends indicating continued global demand growth for energy in the medium and long term.

The stability of the global energy system relies on flexible, reliable, and affordable supply availability, and the UAE has invested to meet demand fluctuations efficiently and responsibly, prioritizing supply stability, cost, and sustainability.

This decision follows decades of constructive cooperation, as the UAE joined OPEC in 1967 through the Emirate of Abu Dhabi, and its membership continued after the establishment of the UAE in 1971. During this time, the nation played an effective role in supporting the stability of the global oil market and enhancing dialogue among producing countries.

The decision emphasizes the evolution of sector policies to enhance flexibility in responding to market dynamics, while continuing to contribute to its stability in a considered and responsible manner.

The UAE is a reliable oil producer that is cost-competitive and has the lowest carbon intensity globally, contributing to global growth and emission reductions.

Following its exit from OPEC, the UAE will continue to fulfill its responsible role by gradually and thoughtfully increasing production in line with demand and market conditions.

With a substantial and competitive resource base, the UAE will continue to work with partners to develop resources that support growth and economic diversification.

It is worth noting that this decision does not change the UAE's commitment to global market stability or its collaborative approach with producers and consumers; rather, it enhances its ability to respond to changing market requirements.

The UAE emphasizes its appreciation for the efforts of both OPEC and the OPEC+ alliance, as the nation's presence in the organization has made significant contributions and even greater sacrifices for the benefit of all. However, it is time to focus efforts on what serves the national interest of the UAE and its commitments to its investor and importer partners and market requirements, which will be the focus moving forward.

The UAE also reaffirms its commitment to production policies based on responsibility and focuses on market stability, taking into account global supply and demand.

The country will continue to invest across the energy sector value chain, including oil, gas, renewable energy, and low-carbon solutions, to support resilience and long-term transformation in the energy system.

The UAE values more than five decades of cooperation with partners, continuing its active participation in supporting the stability of global energy markets.

For his part, Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure of the UAE, stated on his personal account on the "X" platform: "The UAE's decision to exit OPEC aligns with the development based on sector policies consistent with long-term market fundamentals. We express our appreciation to OPEC and its member countries for decades of constructive cooperation. We reaffirm our continued commitment to energy security by providing reliable, responsible, and low-emission supplies that support global market stability."