Why the UAE is quitting OPEC Opinion by The Financial Times

The United Arab Emirates has announced it is exiting OPEC after nearly six decades of membership, arguing that structural changes in global energy markets and its own economic transformation have made the oil producers’ group “no longer aligned” with its national interests.

In an opinion piece, Yousef Al Otaiba, the UAE’s ambassador to the United States, said the country had “outgrown OPEC” and was no longer dependent on oil revenues, which now account for less than a quarter of GDP, according to The Financial Times.

He said the UAE’s economy had diversified into sectors including aviation, logistics, artificial intelligence, tourism and advanced manufacturing, reducing the strategic importance of coordinated oil production management within OPEC.

“The UAE hasn’t been an oil-dependent state for a long time,” Al Otaiba wrote, adding that the organisation was “built for oil-dependent states” and no longer reflected the country’s economic reality.

The ambassador said the UAE planned to expand its oil production capacity to 5 million barrels per day by 2027, supported by major investments in pipelines, ports and logistics infrastructure.

He argued that remaining within OPEC would limit the country’s ability to deploy its spare capacity, which he said was increasingly important for global energy security amid volatile supply conditions.

“The UAE has the capacity to contribute to global energy security at a moment when that security is genuinely at risk,” he said.

Al Otaiba also said revenues from expanded production would be channelled into overseas infrastructure and energy transition investments, including renewable energy projects through Masdar and low-carbon initiatives led by ADNOC’s investment arm, XRG.

He added that the UAE’s departure also reflected geopolitical concerns, citing regional instability and criticising Iran’s continued membership in OPEC despite what he described as violations of the group’s stated objectives.

By Aghakazim Guliyev