DUBAI, United Arab Emirates (AP) — The United Arab Emirates declared Tuesday its intention to withdraw from the OPEC oil cartel and the broader OPEC+ alliance, with the departure taking effect May 1. Industry observers had speculated about this possibility as the Emirates grew frustrated with output limitations and experienced deteriorating ties with Saudi Arabia.
The Emirates had maintained OPEC membership for decades, initially joining through Abu Dhabi in 1967 before continuing as a unified nation following the UAE’s formation in 1971.
However, the UAE has pursued an independent Middle Eastern foreign policy approach that has sometimes conflicted with Saudi positions, especially as the kingdom under Crown Prince Mohammed bin Salman has aggressively competed with the Emirates for international investment opportunities.
The Emirates disclosed its decision through the official WAM news service.
“This decision reflects the UAE’s long-term strategic and economic vision and evolving energy profile, including accelerated investment in domestic energy production, and reinforces its commitment to a responsible, reliable, and forward-looking role in global energy markets,” the UAE said.
“Following its exit, the UAE will continue to act responsibly, bringing additional production to market in a gradual and measured manner, aligned with demand and market conditions,” the country added.
Saudi Arabia has traditionally dominated OPEC, the Vienna-headquartered oil organization that has experienced diminished influence as American crude production has expanded in recent years.
Competition between Saudi Arabia and the UAE has intensified across economic and regional political matters, especially concerning Red Sea affairs. Both nations initially collaborated in a military alliance against Yemen’s Iranian-supported Houthi forces starting in 2015. However, this partnership deteriorated into mutual accusations by late December, when Saudi forces struck what they claimed was an arms shipment destined for UAE-supported Yemeni separatists.
Saudi media companies that had operated from Dubai, the UAE’s commercial center, have also relocated back to the kingdom recently as bilateral relations have soured.
