Why the UAE really left OPEC?

leaving OPEC

 

?Why the UAE really left OPEC

The article examines the strategic, economic, and geopolitical background behind the UAE’s decision to leave OPEC after nearly 60 years of membership.

▪ The UAE Ambassador to the United States, Yousef Al Otaiba, explained that the decision is not driven solely by production quotas or wartime disruptions, but reflects “structural changes in global energy markets and fundamental shifts in the global economy.”

▪ He noted that the UAE is no longer as oil-dependent as it was when it first joined OPEC, with less than a quarter of GDP now linked to the energy sector.

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

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

▪ The country is also advancing toward a bilateral trade agreement with the European Union, alongside a $1.4 trillion investment and technology partnership with the United States.

▪ The article highlights that the world needs “reliable and affordable energy,” and that the UAE has surplus production capacity and strong infrastructure to expand global supply.

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

▪ Remaining within a collective production framework leaves part of this capacity “idle,” with the UAE viewing its exit from OPEC not merely as a commercial decision, but as a responsibility tied to global energy security and economic stability.

▪ Revenues from expanded production will be reinvested in global infrastructure and energy projects. The article highlights the role of Masdar in developing renewable energy projects in over 40 countries, as well as the importance of Barakah Nuclear Power Plant.

▪ It also notes that Iran’s continued “favorable status” within OPEC, despite attacks on oil tankers and energy infrastructure in the Gulf, was among the factors influencing the UAE’s decision.

▪ The article concludes that the UAE’s goal has never been to remain solely an oil-dependent state, but to build a diversified economy, a knowledge-based society, and a globally connected network of partnerships capable of adapting to the future.