UAE announces exit from OPEC and OPEC+ effective May 1

The United Arab Emirates on April 28 announced its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the OPEC+ alliance after nearly six decades of membership.

The move will take effect on May 1, 2026, following a review of the country’s production policy and capacity.

In a statement, the UAE said the decision reflects its long-term strategic and economic vision, as well as a shifting energy profile. This includes accelerated investment in domestic energy production and a commitment to maintaining a responsible, reliable, and forward-looking role in global energy markets.

Long-term growth amid short-term volatility

The UAE noted that while short-term volatility including supply disruptions in the Arabian Gulf and the Strait of Hormuz continues to impact markets, underlying trends point to sustained long-term growth in global energy demand.

The country said it has invested to meet evolving demand efficiently and responsibly, prioritising stability, affordability, and sustainability — key pillars of the global energy system.

Why the UAE is leaving OPEC

The UAE joined OPEC in 1967 through Abu Dhabi and maintained its membership after the formation of the federation in 1971.

Over the decades, it has played an active role in supporting oil market stability and fostering cooperation among producing nations.

However, the decision to exit reflects a policy shift aimed at increasing flexibility in responding to market dynamics, while continuing to contribute to stability in a measured and responsible manner.

The UAE remains a producer of some of the world’s most cost-competitive and relatively low-carbon barrels, which it says will support global economic growth and emissions reduction efforts.

Following its exit, the country said it will gradually increase production in line with market demand and conditions.

The UAE reaffirmed its commitment to global market stability while enhancing its ability to respond to changing market needs.

While expressing appreciation for both OPEC and the OPEC+ alliance, the statement noted that the UAE has “made significant contributions and even greater sacrifices for the benefit of all.”

It added that the time has come to focus on national priorities, as well as commitments to investors, customers, partners, and global energy markets.

Future production policy

The UAE said its production policy will continue to be guided by responsibility and market stability, taking into account global supply and demand dynamics.

The country will also continue investing across the energy value chain, including oil, gas, renewables, and low-carbon solutions.

It added that it will maintain engagement with international partners to support stable global energy markets.