The UAE has announced it will withdraw from the Organization of the Petroleum Exporting Countries and the wider OPEC+ alliance, ending nearly six decades of membership, with the decision taking effect on May 1, 2026.
The move marks one of the most significant shifts in the country’s energy policy since it first joined OPEC in 1967 through Abu Dhabi, before continuing membership following the formation of the United Arab Emirates in 1971.
Officials said the decision follows a comprehensive review of the UAE’s production capacity and long-term energy strategy, signalling a shift towards greater independence in how output is managed.
While the UAE has historically played a central role in coordinating supply cuts and supporting price stability within OPEC+, the exit suggests a growing preference for flexibility, particularly at a time when global energy markets remain highly sensitive to geopolitical developments and supply disruptions.
In a statement, Energy Minister Suhail Al Mazrouei described the move as a “policy-driven evolution aligned with long-term market fundamentals,” pointing to the country’s expanding production capabilities and changing energy mix.
The UAE’s departure from the OPEC oil cartel is not without precedent. Previous member countries like Qatar, Ecuador and Angola left the group in past years, citing frustration with quotas or evolving national priorities. Qatar terminated its membership in 2019, while Angola left the group in 2024.
“While the UAE has left OPEC, they were not the first and may not be the last,” commented Andy Lipow, president of Lipow Oil Associates.
Despite the departure, the UAE emphasised it will continue to act in a way that supports global oil market stability. Officials indicated that any increase in production will be gradual and aligned with demand conditions, rather than a rapid shift that could destabilise prices.
The country also reiterated its intention to maintain close coordination with international energy partners, even outside the formal OPEC+ framework.
Dr Sultan Al Jaber, managing director and group chief executive of the Abu Dhabi National Oil Company, described the decision as sovereign and consistent with the UAE’s long-term energy priorities, including its actual production capacity and commitments to global markets.
The exit reflects a broader shift in the UAE’s energy strategy, which has increasingly focused on diversification across oil, gas, renewables, and lower-carbon solutions.
While oil remains a core pillar of the economy, the country has significantly expanded investment across the wider energy value chain, positioning itself for a more balanced and flexible role in global energy markets.
The UAE currently accounts for roughly 4% of global oil production, giving it meaningful influence even outside coordinated frameworks like OPEC+.
With greater autonomy over production decisions, the UAE is expected to respond more directly to market conditions, particularly as volatility persists across global energy markets.
Recent geopolitical tensions, including disruptions linked to the Iran war, have reshaped supply dynamics, increasing the importance of responsive and adaptive production strategies.
For markets, the key question will be how the UAE calibrates its output in the months ahead, and whether its independent approach introduces more flexibility, or more uncertainty, into global oil supply.
For now, officials have signalled continuity in one key area. That is a commitment to measured production and stable market conditions, even as the country steps away from one of the most influential oil alliances in history.
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