The United Arab Emirates has officially withdrawn from the Organization of Arab Petroleum Exporting Countries (OAPEC), a move that removes the country from a regional framework it no longer views as necessary while it expands its oil output. This step follows the UAE's earlier decision to leave OPEC and the broader OPEC+ alliance, allowing it to control production and export policy on its own terms.
OAPEC, which does not impose production quotas, stated via its X account that it remains committed to enhancing cooperation among member states. The exit is not about immediate supply limits but about the UAE's desire to increase output capacity and manage its own export strategy.
Under the new strategy, ADNOC is targeting a capacity of 5 million barrels per day, with a goal to reach that level by 2027. The government's $150 billion capital-expenditure plan through ADNOC is designed to accelerate this growth, a plan that would have been constrained by OPEC quotas. The UAE's economy is increasingly diversified, with non-oil sectors accounting for over 70% of its GDP, and its sovereign wealth funds collectively manage nearly $3 trillion in assets.
In a telephone interview, UAE Energy Minister Suhail Mohamed al-Mazrouei explained that the decision was made in the national economic interest, noting that it was a policy decision after a careful look at current and future production levels. Chief economist Monica Malik of ADCB said the exit would benefit consumers and open the door for the UAE to gain global market share when geopolitical conditions normalize.
OAPEC stated via its X account: "While it appreciates the role played by the UAE throughout its membership period and its active contribution to supporting joint Arab action in the petroleum and energy sector, the General Secretariat of OAPEC affirms at the same time its commitment to continuing its efforts to enhance co-operation and integration among member states in a way that serves common interests through the implementation of its strategic programmes and initiatives."
The break follows tensions with Saudi Arabia and dissatisfaction with how the group handled Iranian attacks during the conflict. Abu Dhabi faced direct security risks while still operating under cartel policies outside its control.
With global oil demand expected to peak, the UAE aims to monetize its reserves as quickly as possible before the world transitions further toward renewables. The country's ability to leverage its substantial financial cushion allows it to prioritize global economic growth over high oil prices, positioning it to capitalize on market opportunities as supply disruptions ease.
