UAE Announces Exit From OPEC After Six Decades, Cites National Interest

The country emphasised that the move aligns squarely with its national interest and broader strategy to expand domestic energy output.

The United Arab Emirates on Tuesday announced it will exit the Organisation of the Petroleum Exporting Countries and its extended alliance, effective May 1, 2026.

The decision, coming after nearly six decades of membership, signals a major policy shift by one of the world’s most influential oil producers amid rising global energy uncertainty and shifting market dynamics.

GulfNews reports that the UAE government said the withdrawal followed a comprehensive review of its production policies, current capacity, and long-term economic priorities.

The country emphasised that the move aligns squarely with its national interest and broader strategy to expand domestic energy output.

The Gulf nation pointed to ongoing volatility in global oil markets, including disruptions in the Arabian Gulf and the strategic Strait of Hormuz, as part of the backdrop to its decision.

Despite these near-term uncertainties, the UAE maintained that global energy demand is expected to grow steadily over the coming decades.

Officials stressed that a stable energy system requires flexible, reliable, and affordable supply — areas the country says it is increasingly well-positioned to deliver independently.

“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers. Rather, it enhances the UAE’s ability to respond to evolving market needs.”

The UAE joined OPEC in 1967 — years before its formal formation as a nation in 1971 —and has since played a central role in coordinating oil production policies and supporting price stability among member states.

However, the government described its departure as a policy-driven evolution, aimed at giving it greater autonomy to respond swiftly to market conditions while still acting responsibly within the global energy ecosystem.

Abu Dhabi also highlighted its position as a producer of some of the world’s most cost-competitive and lower-carbon oil, noting that such resources will remain critical to global economic growth and emissions reduction efforts.

Following its exit, the UAE pledged to increase production cautiously, aligning supply with market demand to avoid shocks.

While expressing appreciation for OPEC and its allies, the country made clear that future decisions will prioritize domestic economic interests and commitments to investors and partners.

“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organization, 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 and our commitment to our investors, customers, partners and global energy markets. This is what we will focus on going forward.”

The UAE further disclosed plans to deepen investments across the energy value chain, including oil, gas, renewables, and low-carbon technologies, in a bid to strengthen long-term resilience and support the global transition to cleaner energy.

Despite the exit, the UAE insisted it would remain actively engaged with global producers and consumers, reaffirming its commitment to ensuring a stable and balanced energy market.