Why the UAE really left Opec?

Leaving OPEC

 

?Why the UAE really left Opec

The Financial Times published an opinion article by H.E. Yousef Al Otaiba titled: "Why the UAE really left Opec", in which he discussed the strategic, economic, and geopolitical factors behind the United Arab Emirates’ decision to leave OPEC after nearly 60 years of membership.

▪️ He explained that the decision to withdraw is not solely related to production quotas or disruptions caused by war, but reflects “structural changes in global energy markets and fundamental shifts in the global economy.”

▪️ He noted that the UAE is no longer as dependent on oil as it was when it first joined OPEC, pointing out that less than a quarter of the country’s GDP is currently tied to energy.

▪️ He highlighted that the fastest-growing sectors in the UAE include aviation, logistics, advanced manufacturing, artificial intelligence, tourism, and life sciences.

▪️ He confirmed that over the past four years, the UAE has signed 35 Comprehensive Economic Partnership Agreements, 15 of which are already in force, with countries including India, South Korea, Indonesia, Israel, Kenya, Malaysia, Vietnam, Jordan, and others.

▪️ He added that the UAE is also moving toward a bilateral trade agreement with the European Union, in addition to a $1.4 trillion investment and technology partnership with the United States.

▪️ He emphasized that the world needs “reliable and affordable” energy, and that the UAE has surplus production capacity and infrastructure that allow it to expand supply further.

▪️ He stated that the UAE plans to invest tens of billions of dollars in new pipelines, port upgrades, and strengthening logistics infrastructure, aiming to increase production capacity to 5 million barrels per day by 2027.

▪️ He pointed out that remaining within a collective production framework leaves part of this capacity “idle,” arguing that leaving OPEC is not just a “commercial calculation,” but a “responsibility” linked to global energy security and economic stability.

▪️ He added that revenues from expanded production will be reinvested in infrastructure and energy projects worldwide, highlighting the role of Masdar in developing renewable energy projects in more than 40 countries, as well as the Barakah nuclear power plant.

▪️ He also noted that Iran’s continued membership in OPEC, while enjoying a “privileged position” despite its attacks on oil tankers and energy infrastructure in the Gulf, was one of the factors that reinforced the UAE’s decision to withdraw.

▪️ He concluded by emphasizing that the UAE’s goal has never been to remain “just an oil state,” but to build a diversified economy, a knowledge-based society, and a global network of partnerships capable of adapting to the future.