UAE exits Opec in major shift to focus on national energy strategy

The United Arab Emirates’ OPEC departure is not directed at any country, according to the UAE minister heading the state oil giant, who clarified the move on Monday.

Sultan Al Jaber, who serves as chief executive of the Abu Dhabi National Oil Company (Adnoc) and the UAE’s minister for industry and advanced technology, said the decision is aimed at strengthening national priorities and supporting long-term economic goals.

The UAE formally exited OPEC and OPEC+ on Friday after months of reported tensions with Saudi Arabia, the bloc’s largest oil producer and de facto leader. Disagreements had reportedly centered on oil production quotas, regional policy differences, and the ongoing Middle East conflict, which has placed pressure on Gulf economies.

Speaking at the “Make It In The Emirates” conference in Abu Dhabi, Al Jaber stressed that the decision was sovereign and strategic. He said it was not targeted at any nation and forms part of a broader effort to reshape the UAE’s economic and industrial future.

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The UAE has long expressed dissatisfaction with OPEC production limits, which capped its output at around 3.4 million barrels per day. The country now aims to expand production capacity to 5 million barrels per day by 2027.

Adnoc has also announced plans to invest $55 billion in new energy projects over the next two years, with revenues expected to support expansion in artificial intelligence, technology, and advanced industries.

Analysts say the move could further strain relations between the UAE and Saudi Arabia, which have already experienced friction over Yemen policy and oil market strategy. The UAE, however, insists the exit will allow greater flexibility to align energy policy with national development goals.

Al Jaber said the UAE is focused on transforming challenges into opportunities, emphasizing that the country aims to build a stronger and more resilient economy through integration of energy, industry, and technology.