UAE announces exit from OPEC

After more than 60 years of membership, the United Arab Emirates (UAE) has declared that it is leaving the Petroleum Exporting Countries (OPEC).

In a statement by the United Emirates Ministry of Energy & Infrastructure sighted by BusinessDay, the Middle East nation is also exiting OPEC+, a wider alliance of the oil cartel.

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According to the statement, the decision reflects the UAE’s “long-term strategic and economic vision” as well as its evolving energy profile, including accelerated investment in domestic oil production. It also 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 this is based on our national interest and commitment to contributing effectively to meeting the market’s pressing needs,” the statement read in part.

The ministry noted that while near-term volatility, including disruption in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, “the decision follows decades of constructive cooperation.”

It is worth noting that the UAE joined OPEC in 1967, more than 60 years ago, through the Emirate of Abu Dhabi and continued its membership following the formation of the UAE in 1971.

And “throughout this period, the UAE has played an active role in supporting global oil market stability and strengthening dialogue among producing nations.”

The statement noted that the exit signals a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute in a measured and responsible manner.

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“Following the 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,” the UAE wrote, noting that it will continue working with partners to develop resources and diversification.