UAE to exit OPEC+ from May 1 in blow to Saudi-led oil bloc

The United Arab Emirates said Tuesday it will exit the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ group effective May 1.

The announcement, reported by the state-run WAM news agency, said the decision reflects the UAE’s “long-term strategic and economic vision” and its evolving energy profile, including increased investment in domestic production capacity.

“This decision reflects the UAE's long-term strategic and economic vision and evolving energy profile … and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the country said, according to WAM.

The UAE assured it would continue to supply oil “in a gradual and measured manner,” in line with global demand and market conditions, even after leaving the alliance.

The move follows a comprehensive review of the country’s production policy and comes as the UAE seeks greater flexibility outside OPEC-led quotas, which it has long chafed under.

A longtime member, the UAE joined OPEC in 1967 through its emirate of Abu Dhabi and remained after the federation’s formation in 1971.

However, relations within the alliance, particularly with regional heavyweight Saudi Arabia, have grown increasingly strained in recent years.

Saudi Arabia, traditionally the dominant force within OPEC, has pushed to maintain production discipline, while the UAE has sought to expand its output capacity and capitalise on its relatively low-cost crude.

Both countries have also been competing to attract foreign investment, especially after Saudi Arabia opened up its economy under Crown Prince Mohammed bin Salman, challenging the UAE’s status as a regional business hub.