
DUBAI,— The United Arab Emirates spent three years planning its departure from OPEC, driven by a belief that the world is approaching the final chapter of the oil era, a senior presidential adviser said Thursday.
The UAE formally ended its almost 60-year membership in OPEC on May 1, 2026.
In the short term, officials do not expect the departure to move oil markets, citing Iran’s effective closure of the Strait of Hormuz.
However, the decision could later alter OPEC’s ability to manage global supply once normal shipping routes resume.
Anwar Gargash, adviser to UAE President Sheikh Mohamed bin Zayed Al Nahyan, said OPEC output limits had prevented the country from producing at full capacity, which played a key role in the decision to exit.
He said the country views the current energy era as nearing its later stage, adding: “We see that we are close to the sort of autumn of the hydrocarbon age,” and that nations able to produce oil and generate revenue should deploy those earnings into other investments.
The UAE has production capacity of 4.85 million barrels per day and plans to expand this to 5 million bpd by 2027.
Immediately prior to leaving OPEC and the wider OPEC+ alliance led by Russia, its output target was about 3.5 million bpd.
ADNOC chief executive Sultan al-Jaber said on Wednesday that the UAE would continue to act as a responsible and stabilizing force in energy markets.
Saudi Arabia and the UAE, once close partners, have increasingly diverged in recent years on oil policy, regional geopolitics, and competition for foreign investment and skilled labor.
Tensions became public at the start of the year when fighting in Yemen broke out between rival factions supported by each side.
A “50-50 chance” of United States-Iran peace agreement, Gargash said on Friday, any settlement must address underlying causes of regional instability prevent renewed conflict.
(With files from Reuters)
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