The UAE’s decision to leave OPEC was the result of a strategic review that began three years ago, according to a senior presidential adviser. Moreover, the move reflects the country’s view that the global energy landscape is approaching what officials described as the “autumn of the hydrocarbon age.”
The UAE formally ended its nearly six-decade membership in OPEC on May 1. Additionally, officials indicated that the decision was primarily linked to production constraints that limited output below national capacity.
Anwar Gargash, adviser to UAE President Sheikh Mohamed bin Zayed Al Nahyan, said the country’s production quotas under OPEC restricted its ability to maximise oil output. Furthermore, he stressed the importance of leveraging current hydrocarbon revenues to support broader investment ambitions.
“We see that we are close to the sort of autumn of the hydrocarbon age,” he added. “And as a result, if you have the ability to produce and generate income and use that income in other investments, that’s what you should do.”
Production Expansion and Revenue Priorities
The UAE currently holds production capacity of approximately 4.85 million barrels per day. Moreover, the country plans to increase capacity to 5 million barrels per day by 2027 as part of its long-term energy strategy.
Before exiting OPEC and the wider OPEC+ alliance, the UAE’s production target stood closer to 3.5 million barrels per day. Therefore, the policy shift is expected to provide greater flexibility to align production with national economic priorities.
However, analysts expect limited immediate market impact due to ongoing disruption in regional energy flows. Additionally, the effective closure of the Strait of Hormuz has continued to dominate short-term supply dynamics across global oil markets.
UAE Signals Continued Commitment to Market Stability
Despite leaving OPEC, the UAE has reiterated its commitment to maintaining stability in global energy markets. Moreover, officials have emphasised that the decision reflects long-term economic strategy rather than a departure from cooperative energy engagement.
ADNOC Chief Executive Officer Dr. Sultan Al Jaber said this week that the UAE would continue acting as a responsible and stabilising force within the global energy sector. Furthermore, the country continues to position itself as a reliable supplier while accelerating broader economic diversification initiatives.
