The United Arab Emirates has formally announced its decision to withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, marking a major shift in global oil dynamics amid rising tensions in the Middle East.
The decision, which will take effect from May 1, 2026, was contained in a statement issued on Tuesday by the UAE Ministry of Energy and Infrastructure, following what it described as a comprehensive review of its production strategy and long-term energy outlook.
Announcing the development, the ministry said the exit reflects the country’s evolving energy priorities and long-term economic vision.
“The United Arab Emirates today announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+), effective 1 May 2026. This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the statement read.
The UAE noted that the move followed a detailed review of its production policy, capacity, and national economic interests.
“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” it added.
As one of OPEC’s key producers, the UAE said the decision was driven by its desire to respond more flexibly to changing global market conditions.
The ministry further stated that the move is part of a broader strategy to strengthen domestic energy investment and reinforce the country’s global energy role.
The announcement comes amid escalating geopolitical tensions in the Middle East, particularly the ongoing Iran-related conflict, which has disrupted oil routes and heightened uncertainty in global energy markets.
Of major concern is the Strait of Hormuz, a key passage for global crude shipments, where recent threats and incidents have raised fears of supply disruptions and price volatility.
While acknowledging short-term market disruptions, the UAE maintained that long-term global energy demand remains strong.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the statement said.
The exit effectively ends nearly six decades of UAE membership in OPEC, which it joined in 1967 through Abu Dhabi, before the formation of the federation in 1971.
The UAE has historically played a key role in shaping production policies alongside major producers such as Saudi Arabia.
Despite exiting the bloc, the country expressed appreciation for its years of participation.
“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it stated.
“However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets.”
The UAE stressed that it remains committed to responsible oil supply, but with greater flexibility in output decisions.
“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” it added.
It also highlighted its competitive advantage in producing lower-carbon crude, positioning itself as a key supplier in the evolving energy transition.
“The UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction,” the ministry said.
The decision is expected to have significant implications for global oil supply coordination, potentially weakening OPEC cohesion at a time of heightened geopolitical pressure. OPEC+ which includes non-OPEC producers led by Russia has been central to stabilising oil prices since 2016.
For oil-dependent economies such as Nigeria, the development could influence crude prices, government revenue, and foreign exchange earnings, presenting both opportunities and risks depending on market reactions.
The UAE also reaffirmed its long-term diversification strategy, stating it will continue investing across oil, gas, renewables, and low-carbon technologies.
“It will continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions, to support resilience and long-term energy system transformation,” it said.
OPEC, founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, coordinates oil policies among producing nations to stabilise global markets and regulate prices. OPEC+ expanded the bloc in 2016 to include non-OPEC producers such as Russia, Kazakhstan, Mexico, and Oman following the 2014–2016 oil price crash.
Elijah Adeyemi
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