The United Arab Emirates has announced its exit from the Organization of the Petroleum Exporting Countries and its allied bloc OPEC+, effective May 1, 2026, in a move set to reshape the global energy landscape.
The decision, disclosed by the UAE Ministry of Energy and Infrastructure on Tuesday, signals a strategic shift aimed at expanding production capacity to five million barrels per day and unlocking an estimated $50 billion in additional revenue.
According to the ministry, the exit follows a comprehensive review of the country’s production policy, current capacity, and long-term energy outlook. It said the move aligns with the UAE’s national interest and its commitment to meeting rising global demand with a flexible, reliable, and forward-looking approach.
“While short-term volatility—including disruptions in the Arabian Gulf and the Strait of Hormuz—continues to shape supply dynamics, long-term trends indicate sustained growth in global energy demand,” the ministry stated.
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The UAE, which joined OPEC in 1967 through Abu Dhabi and maintained membership after its formation in 1971, said it had played a key role in promoting oil market stability and cooperation among producers for over five decades.
Despite its departure, the government reaffirmed its commitment to market stability, noting that production increases would be gradual and aligned with global demand conditions. It added that the country would continue investing across the energy value chain, including oil, gas, renewables, and low-carbon technologies.
The ministry emphasised that the move enhances the UAE’s ability to respond swiftly to market dynamics while maintaining strong partnerships with producers and consumers.
Commenting on the development, Dubai-based entrepreneur Mario Nawfal described the exit as a logical step driven by geopolitical tensions and policy divergence within OPEC. He cited friction with Iran and differences with Saudi Arabia, alongside dissatisfaction with production quotas despite heavy investment in expanding output capacity.
He added that the decision mirrors earlier exits by countries such as Qatar, Ecuador, and Angola, and could signal a broader shift in the balance of power within global oil alliances.
Analysts say the move underscores the UAE’s ambition to maximise its resource base, boost revenues, and assert greater independence in shaping its energy future.
