UAE quits OPEC, OPEC+ in blow to Saudi-led bloc
The Cradle, April 28, 2026 —
The move follows an announcement by ADNOC to invest billions in US gas production, expanding the UAE’s global energy reach.
On 28 April, the UAE announced its withdrawal from OPEC and the wider OPEC+ alliance effective 1 May, in a move officials described as in the country’s “national interest” and a push for greater flexibility.
“This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs,” the Emirates News Agency (WAM) reported.
“While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term,” WAM added, stressing that the move marks a “policy-driven evolution” aimed at boosting flexibility to respond to market shifts.
The move comes as the UAE pursues a broader strategy to expand its global energy footprint beyond OPEC frameworks, including major investments in overseas gas markets.
Hours before the UAE announced its withdrawal from OPEC, the Abu Dhabi National Oil Company (ADNOC) revealed it plans to invest tens of billions of dollars to build a natural gas business in the US, according to the Financial Times (FT).
ADNOC’s overseas investment arm, XRG, is reportedly reviewing 29 potential deals as part of a strategy to build a vertically integrated global gas business and diversify across the value chain, according to chief investment officer Nameer Siddiqui.
He said the company is “exploring” investments spanning extraction, infrastructure, liquefaction, and distribution, while reaffirming its commitment to deploy significant capital into the US energy market.
According to Rystad Energy analyst Jorge Leon, the UAE’s OPEC exit is a meaningful blow to the oil cartel’s ability to influence markets, since the UAE was one of the few members with significant spare production capacity.
Over the longer term, a free-acting UAE would likely ramp up its own output, which could undermine Saudi Arabia’s traditional role as the stabilizing force in global oil supply.
The move also reflects deepening tensions between Abu Dhabi and Riyadh, with analysts pointing to a broader power struggle reshaping Gulf dynamics.
Journalist and researcher Mawadda Iskandar recently reported in The Cradle that the previously close relationship between Saudi Arabia and the UAE has deteriorated into a growing rivalry, with both countries now involved in a “zero-sum contest for regional primacy” across various fields.
She described a “breakdown” in coordination that has regressed into open political, military, and media confrontation.
The UAE has moved closer to US positions during the war on Iran, analysts argue, avoiding criticism of Washington and Tel Aviv while backing more hardline stances, including calls to defeat Iran “by any means necessary.”
This alignment has widened a divide with Pakistan, with Abu Dhabi opposing efforts to end the US-Israeli war on Iran and seeking to “punish” Islamabad for its role as mediator.