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
Story comments
Loading comments…