The United Arab Emirates will officially leave the Organization of the Petroleum Exporting Countries (OPEC) beginning May 1, according to a statement on Tuesday published in the UAE’s official state news agency WAM.
The announcement states that the move supports the country’s broader strategic goals for its economy and energy sector.
“This decision aligns with the United Arab Emirates’ long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production," the statement said.
OPEC functions as a cartel comprising leading oil-producing nations that work together to set production levels aimed at influencing worldwide oil supply and prices. The UAE is also departing from the wider OPEC+ alliance, which includes Russia and other non-OPEC producers.
Analysts view the departure as a substantial setback for OPEC and particularly for its dominant member, Saudi Arabia. Together, OPEC nations produce about 36 percent of the world’s oil and hold nearly 80 percent of global proven oil reserves.
UAE Energy Minister Suhail Al Mazrouie addressed the decision directly. “The UAE’s decision to exit from OPEC reflects a policy-driven evolution aligned with long-term market fundamentals," he said in a statement on social media. “We remain committed to energy security, providing reliable, responsible, and lower-carbon supply while supporting stable global markets."
OPEC was founded in 1960 by Saudi Arabia, Iran, Iraq, Venezuela and Kuwait. The UAE became a member seven years later, in 1967.
Today, the UAE ranks among the top ten oil producers globally, contributing approximately 3 to 4 percent of total world oil production.