UAE Exits OPEC, Citing Focus on National Interests

The United Arab Emirates left OPEC effective May 1, 2026, becoming the biggest producer to exit the cartel. The UAE was OPEC's fourth-largest producer and had been frustrated with quotas capping production at 3.4 million barrels a day. Abu Dhabi seeks to expand capacity to five million barrels a day by 2027, with Abu Dhabi National Oil Company pledging $55 billion on new projects over the next two years on May 3, 2026.

UAE OPEC exit

• ▪The United Arab Emirates' exit from OPEC dealt a blow to the cartel's ability to control oil prices.
• ▪Sultan Al Jaber stated the United Arab Emirates' decision to exit OPEC was not directed against anyone.
• ▪The United Arab Emirates left OPEC, with the decision taking effect on May 1, 2026.
• ▪The United Arab Emirates was OPEC's fourth-largest producer before leaving the cartel.
• ▪The United Arab Emirates is the biggest producer by far to leave OPEC.

UAE-Saudi tensions

• ▪The United Arab Emirates and Saudi Arabia have long been at odds over OPEC production quotas.
• ▪The United Arab Emirates' decision to leave OPEC followed months of tensions with Saudi Arabia over foreign policy, oil output, and the Middle East war.
• ▪A close partnership between the United Arab Emirates and Saudi Arabia turned into an open rivalry since a public falling out in December 2025 over Yemen.

National economic strategy

• ▪Sultan Al Jaber stated the United Arab Emirates' decision to exit OPEC serves the country's national interests and long-term strategic objectives.
• ▪Sultan Al Jaber stated the United Arab Emirates' exit from OPEC is part of a broader effort to reshape the country's economy and industrial base through a vision that connects energy, technology, and industry.
• ▪Sultan Al Jaber is CEO of Abu Dhabi National Oil Company and the United Arab Emirates' industry and advanced technology minister.
• ▪The added revenue from oil sales would allow the United Arab Emirates to step up investments in artificial intelligence and other high-tech sectors.

Oil production expansion plans

• ▪Abu Dhabi National Oil Company pledged to spend $55 billion on new projects over the next two years on May 3, 2026.
• ▪The United Arab Emirates has long been frustrated with OPEC's quotas, which sought to cap Emirati production at 3.4 million barrels a day.
• ▪Abu Dhabi seeks to expand the United Arab Emirates' production capacity to five million barrels a day by 2027.

Perspective of Saudi Arabia and OPEC

• ▪A close partnership between the United Arab Emirates and Saudi Arabia turned into an open rivalry since a public falling out in December 2025 over Yemen.
• ▪The United Arab Emirates' exit from OPEC dealt a blow to the cartel's ability to control oil prices.

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