The United Arab Emirates (UAE) declared on April 28, 2026, that it will permanently leave the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ group effective May 1. The decision marks the end of over 50 years of UAE membership in the oil cartel that began in 1967 with the Emirate of Abu Dhabi and continued after the UAE’s formation in 1971.
According to an official statement, the UAE’s departure follows an “extensive review” of its oil production policy and future capacity. The country cited “geopolitical fluctuations” affecting short-term oil supplies as a factor, referencing the ongoing war involving Iran and the resulting blockage of the Strait of Hormuz, a critical route for approximately 20% of the world’s daily oil shipment.
The UAE stressed that its exit reflects a long-term strategic and economic vision oriented toward an evolving energy profile. This includes accelerated investment in domestic energy production and a commitment to being a “responsible, reliable, and forward-looking” participant in global energy markets. The statement also assured that the UAE would continue to bring additional oil supply to market gradually and in alignment with demand and market conditions.
UAE’s Desire to Increase Oil Production
Analysts have speculated that the UAE’s decision stems partly from its ambition to increase oil output, which some sources say has been constrained by OPEC quotas. Capital Economics noted that the UAE has sought more flexibility in production, with previous periods of overproduction being tacitly tolerated by other OPEC members alongside quota adjustments.
Tensions have grown between the UAE and Saudi Arabia, OPEC’s largest producer, over political and economic disagreements in the Middle East in recent years. Experts, including Michael Brown of brokerage firm Pepperstone, have pointed out the UAE’s dissatisfaction with OPEC’s production limits, which the country views as unfair constraints on its significant infrastructure investments.
Why it matters
The UAE’s exit from OPEC and OPEC+ comes amid a volatile geopolitical landscape driven by the Iran war, which has heightened concerns over oil supply stability. Given the UAE’s critical role in global energy markets as a major producer, its move could alter the dynamics within OPEC and affect global oil prices. The UAE’s stated intent to increase production outside OPEC constraints may influence both market supply and geopolitical calculations in the energy sector.
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Sources
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