The United Arab Emirates announced on Tuesday that it will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and the broader OPEC+ alliance, effective Friday, citing the need to prioritize its national interests and evolving energy strategy. The UAE, one of the world’s top oil producers and the fourth-largest exporter globally, has been a member of OPEC for nearly five decades.

In an official statement, the UAE emphasized that the decision aligns with its long-term strategic and economic vision. It noted that during its membership, the country made significant contributions and sacrifices for the collective benefit of the group. However, it added that the time has come to focus on the country’s individual priorities.

Observers point to a widening rift between the UAE and Saudi Arabia, OPEC’s largest member and de facto leader, as a key factor behind the move. Disagreements over production quotas have become increasingly pronounced in recent years. In 2022, tensions surfaced publicly when then-US President Joe Biden urged Saudi Arabia and OPEC to boost production to lower fuel prices ahead of mid-term congressional elections. The UAE was reportedly frustrated by production cuts led by Saudi Arabia intended to prop up oil prices, which compelled the Emirates to limit its output despite having spare capacity.

The discord intensified after a faction backed by the UAE took control of parts of southern Yemen in late 2025, displacing the Saudi-supported government there, which further strained relations between the two Gulf partners. Additionally, the UAE has expressed dissatisfaction with what it perceives as limited support from other Gulf states during its ongoing conflict with Iran.

Analysts suggest that the UAE’s withdrawal offers the country greater flexibility to increase oil production, particularly as global supply uncertainty persists amid ongoing regional conflicts and the stalled resumption of Iranian oil shipments. Some experts regard this exit as one of the most significant disruptions in OPEC’s 66-year history, potentially reshaping the dynamics of the global oil market and Gulf cooperation.

The move also hints at a broader shift in the UAE’s geopolitical alignments. The Emirates has signaled intentions to strengthen ties with the United States and Israel and may consider distancing itself from other regional organizations perceived as dominated by Saudi Arabia, such as the Arab League.

Neither Saudi Arabia nor OPEC’s Vienna headquarters released an official response immediately following the announcement. Market analysts suggest the withdrawal may have limited short-term effects on global energy markets but could signal greater fracturing within the cartel and the Gulf’s traditionally cohesive energy diplomacy.