UAE announces decision to withdraw from Opec, Opec+ from May 1
Earlier on April 28, the UAE announced it would withdraw from Opec (and Opec+) effective May 1, 2026.
This decision, taken after over six decades of being a part of the organisation, was made post an assessment of the country's production policy and its capabilities.
The UAE is a reliable supplier of some of the world’s most competitively priced and low carbon barrels and is key in underpinning global growth and emissions abatement.
Long-term growth despite volatility
The UAE said in its announcement that near-term volatility — including disruptions in the Arabian Gulf and Strait of Hormuz — affect the supply dynamics but also cited long-term trends pointing to continued global energy demand growth.
The country has stated that it has made investments to efficiently and responsibly meet changing demand, guided by the principles of stability, affordability, and sustainability – the foundations on which a global energy system is built.
Why it left Opec
The UAE, which became part of Opec in 1967 through Abu Dhabi, maintained its membership after the United Arab Emirates was established in 1971.
It has been at the forefront of dealing with and ensuring global oil market stability throughout this time & strengthening dialogue among producing nations.
But the choice to exit, on the other hand, shows how policy will steer away from a "Whatever it takes" mode anchored by the nation's open and relatively liquid funds while remaining involved in an orderly fashion.
It similarly showcases the UAE's long-term strategic and economic aspirations, alongside an evolving energy profile that encompasses increased expenditure on domestic energy generation.
'Significant contributions, greater sacrifices'
UAE remains committed to the global stabilisation of markets and will continue to be able to deliver what is required for all regions as market trends change.
Though the nation touted its respect for Opec and the Opec+ alliance, it stated it "has already made major contributions -- huge sacrifices in fact -- for the sake of all".
The time has come to concentrate resources on what's dictated by national interest and "our commitment toward our investors, customers, partners and global energy markets," it said.
"And so this is what we are going to do next."
What's next?
The UAE said after it departed that it would act in a responsible manner, bringing more supply to market at or near the level 'required by demand and market fundamentals.
The nation will continue its partnerships ensuring the development of resources, which in turn bolsters economic growth and diversification.
It will also persist with partners to develop assets supporting economic growth and diversification — and support steady global power markets.
It also said production policies would be driven by responsibility and stability of the market, with global supply and demand figures taken into account.
Investment along the energy chain — oil, gas, renewables and low-carbon solutions — will thus remain a priority for the UAE.
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