UAE Abandons OPEC Amid Tensions with Saudi Arabia

The United Arab Emirates (UAE) is set to leave OPEC and its broader OPEC+ alliance on May 1st, a move that has been anticipated for some time. The UAE's frustration with output limits and strained relations with Saudi Arabia have contributed to this decision.

Originally joining OPEC through Abu Dhabi in 1967, the UAE continued as a member after becoming a sovereign nation in 1971. However, over time, it pursued an increasingly independent foreign policy that sometimes clashed with Riyadh's positions.

Tensions escalated as Saudi Arabia, driven by Crown Prince Mohammed bin Salman's ambitious reforms, began actively competing with the UAE to attract international investment. The UAE has pledged to gradually increase oil production in response to market demand, framing its exit as a reflection of its long-term economic strategy and evolving energy priorities.