UAE exits OPEC, OPEC+ in major market shift
Outside the group, the UAE would have both the incentive and the ability to increase production, says Jorge Leon, analyst at Rystad
28 April, 2026
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The UAE has announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance, effective May 1, 2026, marking a significant shift in the country’s energy policy as it seeks greater flexibility in managing production and long-term growth.
The decision follows a comprehensive review of the UAE’s production strategy, current capacity and future energy outlook, and is aligned with the country’s broader economic and industrial ambitions, WAM reported.
In a statement, the UAE said the move reflects its “long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production,” while reinforcing its commitment to remaining a responsible and reliable participant in global energy markets.
The exit comes at a time of continued volatility in global energy markets, including disruptions in the Arabian Gulf and the Strait of Hormuz. However, the UAE noted that underlying demand trends remain strong over the medium to long term, requiring flexible and reliable supply.
The country emphasised that its decision is rooted in national interest, while maintaining its commitment to supporting global market stability. The UAE has been a member of OPEC since 1967, initially through Abu Dhabi, and continued its participation following the formation of the federation in 1971.
Despite exiting the alliance, the UAE signalled it will continue to engage constructively with global energy stakeholders and bring additional production to market in a measured and demand-aligned manner.
“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 statement said.
The move underscores a broader evolution in the UAE’s energy strategy, which is increasingly focused on balancing hydrocarbons with investments in renewables, low-carbon technologies and energy transition initiatives.
The UAE also highlighted its position as a producer of cost-competitive and lower-carbon oil, noting that such resources will continue to play a role in supporting global economic growth while contributing to emissions reduction goals.
While stepping away from formal coordination under OPEC and OPEC+, the UAE reaffirmed its commitment to cooperation with both producers and consumers to ensure stability in global markets.
“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success,” the statement added. “During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all.”
Looking ahead, the UAE said it will continue investing across the full energy value chain, including oil, gas, renewables and low-carbon solutions, positioning itself to respond to evolving market dynamics while supporting long-term energy system transformation.
























