The United Arab Emirates has officially exited OPEC, a move described by its oil chief as a strategic decision for economic diversification.
Sultan Al Jaber, CEO of ADNOC and UAE's industry minister, stated that the departure is not directed against any particular country.
The decision took effect on Friday, amid rising tensions with Saudi Arabia regarding oil production and foreign policy.
Relations between the UAE and Saudi Arabia have soured recently, especially following a public disagreement over their involvement in Yemen.
The UAE has long expressed dissatisfaction with OPEC's production limits, which have capped its oil output.
Economic Goals Drive OPEC Exit
Al Jaber emphasized that the UAE's exit aligns with its long-term economic and developmental ambitions.
Leaving OPEC serves our national interests and long-term strategic objectives, aligning with our industrial, economic, and developmental ambitions.
Sultan Al Jaber
He noted that the withdrawal is part of a larger strategy to reshape the UAE's economy by connecting energy with technology and industry.
The UAE aims to increase its oil production capacity to five million barrels per day by 2027, up from the current cap of 3.4 million.
Future Investments and Military Innovations
In light of its OPEC exit, the UAE is focusing on investments in non-oil sectors, including artificial intelligence and military capabilities.
ADNOC plans to invest $55 billion in new projects over the next two years to support this shift.
Additionally, the UAE is developing its own military technologies, aiming to produce locally made air defense systems.
Eighty-five percent of the drones were tackled through jammers developed and produced in the UAE.
Faisal Al Bannai
The UAE's move away from OPEC signifies a pivotal moment as it seeks to bolster its economy and national security.