Liputan6.com, Jakarta - The United Arab Emirates (UAE) has made a historic decision that will change the landscape of the global energy market.
The oil-rich nation officially announced its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance.
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This decision will take effect on May 1, 2026.This significant announcement, made on Tuesday, April 28, 2026, via the UAE's state news agency, WAM, marks the end of the UAE's nearly six-decade membership in OPEC.
So, what are the driving factors behind this decision, and how will it impact the global oil market?
Reasons Behind the UAE's Decision
The UAE plans to accelerate investment in domestic energy production, in line with its growing energy profile.
The UAE has long expressed discontent with OPEC-mandated production restrictions, which it believes unfairly limit its ability to utilize its growing production capacity.
The country has invested approximately $150 billion to increase its production capacity from 3 million barrels per day (bpd) to a target of 5 million bpd by 2027.
By not being bound by OPEC quotas, the UAE will have the flexibility to respond to market dynamics and increase oil production as needed.
The UAE's national oil company, Abu Dhabi National Oil Company (ADNOC), has set an ambitious target of increasing its crude oil production capacity to 5 million barrels per day by 2027, a significant increase from 2.94 million barrels in 2023.
Under the OPEC+ arrangement, the UAE is producing approximately 30% below its current capacity of 4.85 million barrels per day, a limit it is eager to lift.
Implications and Impact of UAE Withdrawal
The UAE's withdrawal from OPEC, as the group's third-largest oil producer after Saudi Arabia and Iraq, is expected to weaken the organization.
It will also reduce OPEC's control over global oil supply and prices.
OPEC's share of global crude oil production has declined from around 40% in February 2006 to 36% in February 2026, and the UAE's withdrawal will further depress that figure.
This withdrawal is a significant blow to Saudi Arabia, which has long been the de facto leader of OPEC.
Furthermore, there are long-standing tensions between the UAE and Saudi Arabia over the group's approach to oil production limits and geopolitics.
After leaving, the UAE has the ability to increase production by around 1.5 million barrels per day, which was previously capped by the OPEC+ agreement.
This increase in supply could exert significant downward pressure on oil prices in the medium term, particularly after the Strait of Hormuz reopens.
However, the immediate market impact is expected to be limited, as global oil supplies are currently severely constrained by the conflict in Iran, which has closed the Strait of Hormuz.
UAE History as OPEC Membership
The United Arab Emirates joined OPEC in 1967 through the Emirate of Abu Dhabi and continued its membership after the formation of the United Arab Emirates in 1971.
Throughout this period, the UAE has played an active role in supporting the stability of the global oil market and strengthening dialogue between producing countries.
However, the UAE is not the first country to leave OPEC in recent years.
Qatar withdrew from the organization in 2019, followed by Ecuador in 2020.