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Economy
The United Arab Emirates announced on Tuesday its decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+, effective from the first of May.
According to the official WAM news agency, the decision aligns with the UAE's long-term strategic and economic vision and the development of its energy sector, including accelerating investment in domestic energy production, and reinforces its commitment to its role as a responsible and reliable producer that looks toward the future of global energy markets.
The decision comes after an extensive review of the UAE's production policy and its current and future capacity, given what national interest requires and the country's commitment to contributing effectively to meeting urgent market needs, while geopolitical volatility continues in the near term through disruptions in the Arabian Gulf and the Strait of Hormuz affecting supply dynamics, as fundamental trends indicate continued growth of global energy demand in the medium and long term.
Global energy system stability depends on flexible, reliable, and reasonably priced supplies, and the UAE has invested to efficiently and responsibly meet demand variables, while prioritizing supply stability, cost, and sustainability.
The decision also comes after decades of constructive cooperation, where the UAE joined OPEC in 1967 through the Emirate of Abu Dhabi, and its membership continued after the establishment of the UAE in 1971. During this period, the country played an active role in supporting the stability of the global oil market and enhancing dialogue among producing countries.
According to WAM, the decision confirms the evolution of sector policies to enhance flexibility in responding to market dynamics, while continuing to contribute to its stability in a considered and responsible manner.
The UAE is considered a reliable producer of the most cost-competitive and globally lowest-carbon-intensity oil, contributing to enhancing global growth and reducing emissions.
After withdrawing from OPEC, the UAE will continue its responsible role by gradually and carefully increasing production, in line with demand and market conditions.
With a large and competitive resource base, the UAE will continue to work with partners to develop resources, supporting growth and economic diversification.
This decision does not change the UAE's commitment to the stability of global markets or its cooperative approach with producers and consumers, but rather enhances its ability to respond to changing market requirements.
The UAE affirmed its appreciation for the efforts of both OPEC and the OPEC+ alliance, as the country's membership in the organization made significant contributions and greater sacrifices for the benefit of all, but the time has come to focus efforts on what the UAE's national interest requires and its commitment to its partner investors, importers, and market needs — and this is what it will focus on in the future.
The UAE also stressed the continuation of its production policies' commitment to responsibility and focus on market stability, taking into account global supply and demand.
It also indicated that it will continue to invest across the energy sector value chain, including oil, gas, renewable energy, and low-carbon solutions, to support flexibility and long-term transformation of the energy system.
The UAE valued more than five decades of cooperation with partners, while continuing its active participation to support the stability of global energy markets.
