UAE announces decision to exit Opec & Opec+

The United Arab Emirates on Tuesday 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. 

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. 

Sovereign Responsibility in a New Energy Age 

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. 

A stable global energy system depends on flexible, reliable, and affordable supply. The UAE has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability. 

This decision follows decades of constructive cooperation. The UAE joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership following the formation of the United Arab Emirates in 1971. Throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations. 

The decision reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner. 

A Reliable and Responsible Energy Partner 

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. 

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. 

With a large and competitive resource base, the UAE will continue working with partners to develop resources, supporting economic growth and diversification. 

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. 

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. 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. 

A Balanced and Forward-Looking Approach 

The UAE reaffirmed that its production policies will be guided by responsibility and market stability, taking into account global supply and demand. 

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. 

The UAE values more than five decades of cooperation with partners and will continue active engagement in support of stable global energy markets. 

Ole Hansen, Head of Commodity Strategy, Saxo Bank told Gulf Today that the UAE has decided to leave Opec, effective May 1, as it pursues a strategic realignment in the wake of the Iran war.

In the short- to medium term, Hansen said the market should be able to absorb additional UAE barrels given depleted global inventories and the need to rebuild reserves. Over time, however, the departure raises a broader strategic question: if other producers begin prioritising market share over quota discipline, Opec’s ability to manage orderly markets through coordinated supply adjustments may increasingly be called into question.

Madhur Kakkar, Founder & CEO, Elevate Financial Services, said that the UAE’s decision marking a significant shift in global oil dynamics amid high prices and supply disruptions linked to the US-Iran war and tensions in the Strait of Hormuz.

Kakkar said that the decision reflects alignment with the UAE’s long-term strategic vision, continued development of its energy sector, and investments aimed at boosting domestic production capacity. The move also reflects national interests amid heightened geopolitical volatility, alongside quota constraints that have limited output.