UAE Gains Production Flexibility After OPEC Exit

May 4, 2026

93 min

May 4, 2026 09:31

UAE gains freedom to produce what industries need after OPEC exit, says Al Mazrouei

## UAE's New Energy Strategy

The UAE's departure from OPEC and OPEC+ has granted the country greater autonomy in its oil production strategy. According to Suhail Mohamed Al Mazrouei, the Minister of Energy and Infrastructure, this move allows the UAE to better align its output with both domestic industrial needs and global market demands. The decision was announced at the Make it in the Emirates summit in Abu Dhabi.

## Industrial and Global Market Alignment

Al Mazrouei emphasized that the exit provides the UAE with the freedom to produce what its industries require without the constraints of being part of a producer group. This flexibility is expected to enhance the country's industrial planning and support partners who have invested in the UAE.

## Role of ADNOC

The Abu Dhabi National Oil Company (ADNOC) and its affiliates have been pivotal in supporting the UAE's industrial sector. Their role is expected to grow as the country expands its manufacturing base, leveraging its energy capacity to foster industrial growth while remaining responsive to global demand.

## Maintaining Good Relations

Despite leaving OPEC, the UAE aims to maintain good relations with other energy-producing nations. Al Mazrouei assured that the UAE remains a responsible energy producer and will continue to engage with countries both within and outside the former alliance.

## Strategic Concerns

Al Mazrouei highlighted the importance of keeping the Strait of Hormuz open, warning against any attempts to control this critical waterway. He stressed that disruptions could have far-reaching impacts on global energy markets, particularly affecting poorer nations.

## Future Production Plans

The UAE plans to increase its oil production capacity to 5 million barrels per day by 2027. This goal is part of a broader strategy to meet rising global demand and replenish strategic reserves depleted by recent disruptions. The UAE's approach aims to balance increased production with market stability.

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