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UAE Exits OPEC, Betting on Diversification and Energy Security

Financial Times Companies •
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The UAE has formally exited OPEC after nearly six decades, a move that signals a shift from oil quota management to independent market strategy. Ambassador Mana Al Otaiba, whose father once steered the UAE’s oil policy, framed the decision as a natural evolution for a nation that now derives less than a quarter of its GDP from hydrocarbons.

OPEC was born to serve oil‑dependent states, offering collective pricing and stability. Today, the UAE’s economy is diversified: aviation, logistics, manufacturing, tourism drive growth. In the last four years the country signed 35 economic partnership agreements, 15 already active, and pledged a $1.4 trillion investment in technology and trade, opening markets across five continents globally today.

With less than 25 % of its output tied to oil, the UAE now pursues a 5 million‑barrel‑per‑day capacity target by 2027, a figure that would sit idle under OPEC’s quota system. The decision frees up tens of billions for new pipelines, port upgrades and logistics to secure reliable supply amid regional volatility for the world economy.

Beyond oil, the UAE channels surplus revenues into global infrastructure: Masdar powers 40 countries, ADNOC’s XRG arm invests in low‑carbon projects, and the Barakah nuclear plant supplies clean baseload power. By exiting OPEC, the UAE signals its intent to contribute to global energy security while funding the transition, ensuring both profit and sustainability coexist today.