ABU DHABI: The UAE’s departure from OPEC, dominated by ally-turned-rival Saudi Arabia, was not targeted at anyone but is part of a broader plan to future-proof its economy, the country’s oil chief said Monday (May 4).
The move was part of the long-term project to diversify beyond fossil fuels, said Sultan Al Jaber, CEO of state oil giant ADNOC and the UAE’s industry and advanced technology minister.
The shock decision, which took effect on Friday, followed months of tensions with Saudi Arabia, the world’s top oil exporter and OPEC’s de facto leader, over foreign policy, oil output and the Middle East war, which has strained Gulf economies.
The once close partnership between the Gulf neighbours has turned into a simmering rivalry since a public falling-out in December over Yemen, where they back rival militias.
The UAE has long chafed at OPEC production limits championed by Saudi Arabia. But Jaber said the decision to withdraw had purely national considerations in mind.
“The United Arab Emirates’ sovereign decision to reposition itself within the global energy landscape, and to exit OPEC and OPEC+, is not a decision directed against anyone,” he told a conference in Abu Dhabi.
The exit of the UAE, which was OPEC’s fourth-largest producer, dealt a blow to the cartel’s ability to control oil prices.
It also further strained UAE-Saudi ties, which plunged after their row over Yemen in December, according to analysts. The two sides have long been at odds over OPEC production quotas.
Leaving OPEC “serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value”, Jaber said.
“This move was not done in isolation,” he said at the Make It In The Emirates conference on UAE industry.
“It is part of a broader effort to reshape our economy and industrial base through a vision that connects energy, technology, and industry, aligning our resources with national priorities to build a stronger, more resilient economy.”