Market AnalysisApr 30, 20262 Min
UAE Exits OPEC In Major Policy Shift Amid Iran Tensions: Reasons For The Split And What Comes Next
The United Arab Emirates has said it will quit the Organization of the Petroleum Exporting Countries (OPEC) and the wider OPEC+ framework. The decision was taken by the UAE amid tensions in the Middle East, including disruptions in the Strait of Hormuz.
Who is involved?
The move centres on the UAE and OPEC. It also affects the broader OPEC+ alliance of oil-producing nations.
What happened?
The UAE has announced that it will exit OPEC and the wider OPEC+ framework. This is a major blow to the oil producers’ group as the energy crisis caused by the Iran war exposes discord among Gulf nations. The departure of the UAE, one of the group’s biggest producers, is set to weaken OPEC’s control over global oil supplies and deepen a growing rift with Saudi Arabia, the cartel’s de facto leader.
When did it happen?
The UAE made the announcement on April 28, and its exit will take effect on May 1.
Why did it happen?
The UAE said the decision followed a complete review of its production policy and capacity, and added that leaving the group was in its national interest.
At the same time, other factors could have also contributed to the move:
Weeks of missile and drone attacks by Iran targeting the UAE
Disruptions to shipping in the Strait of Hormuz, affecting oil exports
The UAE’s ambition to expand capacity to 5 million barrels per day by 2027
Broader geopolitical differences, including tensions with Saudi Arabia.
How did it unfold?
The UAE’s Energy Ministry Suhail Al Mazrouei confirmed the decision in a written statement. Mazrouei said the timing was chosen to be the least disruptive for other producers.
The exit comes after nearly six decades of involvement. The UAE’s membership dates back to 1967, when Abu Dhabi joined the organisation before the country was formally established in 1971.
Why the UAE’s Exit Matters
The UAE is not the first country to leave OPEC. In the past, Indonesia, Qatar, Ecuador, Angola and Gabon have also withdrawn, over disagreements on output quotas. But the UAE’s exit matters because it is not a marginal producer. It has been one of the most influential members of OPEC.
In February 2026, it was the group’s third-largest oil producer, behind only Saudi Arabia and Iraq. Crucially, it was among the few members, alongside Saudi Arabia, with meaningful spare production capacity, allowing it to influence prices and respond to supply shocks.
Apart from the UAE, OPEC currently has 11 other members, and collectively controls about 30% of global oil supply. The members include Algeria, Republic of the Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia and Venezuela.
The Future
Much will depend on how things settle once the tensions in the Gulf ease and normal shipping resumes. The UAE’s exit from OPEC could also set off a chain reaction, putting more pressure on Saudi Arabia to respond.
Once tankers start moving freely again through the Strait of Hormuz, or if the UAE pushes ahead with new pipeline routes, Emirati oil could flow in much larger volumes without OPEC restrictions. It may not change the current disruptions on the ground, but it could reshape how the oil market looks in the period that follows.
