The United Arab Emirates (UAE) announced it will withdraw from OPEC and the broader OPEC+ alliance starting May 1st. The departure had been anticipated for a while, as the UAE had grown increasingly frustrated with output limits and its relationship with Saudi Arabia had become more strained.
The UAE originally joined OPEC through Abu Dhabi in 1967, and continued as a member after becoming a sovereign nation in 1971. Over time, however, the country began pursuing a more independent foreign policy that at times clashed with Riyadh’s positions.
Tensions were compounded as Saudi Arabia, energized by Crown Prince Mohammed bin Salman’s ambitious reforms, began actively competing with the UAE to attract international investment.
The UAE’s official statement, released through its state news agency WAM, framed the exit as a reflection of its long-term economic strategy and evolving energy priorities. The country also pledged to gradually increase oil production in a measured way that responds to market demand.
OPEC, headquartered in Vienna, has seen its global influence erode in recent years as U.S. crude production has surged. Within that backdrop, Saudi Arabia and the UAE have been increasingly at odds over both economic competition and regional politics, particularly around the Red Sea.
Though the two nations had been partners in the military coalition against Yemen’s Houthi rebels since 2015, that alliance frayed sharply in late December when Saudi Arabia struck what it claimed was a weapons shipment destined for UAE-backed Yemeni separatists. More recently, Saudi-owned media outlets that had operated out of Dubai began relocating back to the kingdom as relations continued to deteriorate.
