UAE to Exit OPEC, Citing Strategic Shift in Energy Policy

The United Arab Emirates said on Tuesday it will exit the Organization of the Petroleum Exporting Countries and its allied grouping, effective May 1, marking a significant recalibration of its energy strategy as it pivots towards greater production flexibility and long-term diversification, the country's state media reported.

The decision followed a comprehensive review of the UAE’s production policy and future capacity, and was guided by national interest and the need to respond more effectively to evolving global energy demand, the Ministry of Energy and Infrastructure said in a statement, acccording to a statement on X.

The UAE, a member of OPEC since 1967, said the move reflects its “long-term strategic and economic vision” and its expanding energy profile, including increased investment in domestic output as well as renewables and low-carbon solutions.

The ministry emphasised that the exit does not signal a retreat from global energy cooperation. The UAE reiterated its commitment to market stability and said its production policies would continue to be guided by supply-demand dynamics and responsible market participation.

“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner,” the statement said, adding that the country would remain engaged with partners to support stable global energy markets.

The UAE also underscored its intention to continue investing across the energy value chain, spanning oil, gas, renewables, and emerging low-carbon technologies, to strengthen resilience and support long-term energy system transformation.

The move comes at a time of heightened volatility in global energy markets, including disruptions in the Arabian Gulf and the Strait of Hormuz, though the UAE noted that underlying demand trends remain robust over the medium to long term.

While stepping away from OPEC’s coordinated production framework, the UAE signalled that it would maintain a cooperative stance with producers and consumers, and continue to contribute to global energy security through reliable and competitively priced supply.

The statement described the decision as a “policy-driven evolution” that enhances the UAE’s ability to respond to market dynamics while preserving its role as a stable and responsible energy partner.

Separately, Reuters reported that the UAE did not consult Saudi Arabia or other OPEC members before announcing its exit. The news agency also cited Energy Minister Suhail al-Mazrouei as saying the decision followed a careful review of current and future production policy, and noted that leaving OPEC would allow the UAE to fully utilise its production capacity.

Reuters added that the move comes amid ongoing regional tensions linked to Iran and at a time of limited global spare oil production capacity.