By Seun Ibiyemi
The United Arab Emirates (UAE) has formally announced its decision to withdraw from the Organisation of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, marking a major shift in global oil politics amid rising tensions across the Middle East.
The decision, which will take effect from May 1, 2026, was disclosed in a statement issued on Tuesday by the UAE Ministry of Energy and Infrastructure following what it described as a comprehensive review of its production strategy and future energy outlook.
The ministry said the move reflects the country’s evolving energy priorities, long-term economic vision, and growing investments in domestic energy production.
“The United Arab Emirates today announced its decision to exit the Organisation of the Petroleum Exporting Countries (OPEC and OPEC+), effective 1 May 2026.
This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the statement read.
According to the ministry, the withdrawal followed a detailed review of the UAE’s production policy and future capacity expansion plans.
“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” it added.
The UAE, one of OPEC’s major producers, said the decision was anchored on national interest and the need for greater flexibility in responding to changing market realities.
The announcement comes amid escalating geopolitical tensions in the region, particularly the ongoing Iran conflict, which has disrupted oil supply routes and heightened uncertainty in global energy markets.
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Of particular concern is the Strait of Hormuz, a critical oil transit corridor through which a large share of the world’s crude oil supply passes. Recent threats and attacks linked to the regional crisis have raised fears of supply disruptions and increased price volatility.
The UAE acknowledged the near-term volatility but maintained that long-term global energy demand remains strong.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” the ministry stated.
The decision effectively ends nearly six decades of UAE participation in OPEC. The country joined the organisation in 1967 through Abu Dhabi, years before the federation was officially formed in 1971.
Over the years, the UAE played a major role in shaping production policies and stabilising oil markets alongside key producers such as Saudi Arabia.
Despite the withdrawal, the country expressed appreciation to OPEC and the OPEC+ alliance for years of collaboration.
“We reaffirm our appreciation for the efforts of both OPEC and the OPEC+ alliance and wish them success. During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” the ministry said.
“However, the time has come to focus our efforts on what our national interest dictates and our commitment to our investors, customers, partners and global energy markets.”
The UAE stressed that its exit does not signal a retreat from international energy cooperation, but rather a strategic shift toward greater independence in managing oil output.
It pledged to continue supplying the market responsibly and in line with global demand.
“Following its exit, 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 country also highlighted its advantage in producing lower-carbon crude, positioning itself as a reliable supplier in the evolving global energy transition.
“The UAE is a trusted producer of some of the world’s most cost-competitive and lower-carbon barrels, which will play an important role in supporting global growth and emissions reduction,” it added.
The move could weaken OPEC’s internal cohesion and complicate efforts to manage global oil supply, especially at a time when geopolitical risks are already straining the system.
The OPEC+ alliance, which includes major non-OPEC producers such as Russia, has been central to stabilising oil prices since its formation in 2016.
However, shifting national priorities and regional tensions are increasingly testing the bloc’s unity.
For oil-dependent economies such as Nigeria, the development presents mixed implications, with the possibility of higher crude revenues on one hand and increased costs for refined petroleum imports on the other.
The UAE said it would continue investing across the energy value chain, including oil, gas, renewables, and low-carbon technologies, as part of a broader diversification strategy.
As the Middle East crisis continues to unfold, attention will now shift to how OPEC responds to the exit and whether the alliance can maintain unity amid mounting geopolitical and economic pressures.
