UAE Leaving OPEC

May 18, 2026

This article is translated and excerpted from the May 5 issue, #230 of Lutte Ouvrière / Arbeidersstrijd (Workers Struggle), the paper of the Trotskyist group of that name active in Belgium.

The United Arab Emirates (UAE) was formed by the union of six emirates (small kingdoms) in the oil-rich Persian Gulf region, with guidance by England. They joined OPEC in 1967.

OPEC was founded in the 1960s by countries which were poor at the time. Oil was one of their main resources. Their aim was to keep a larger share of oil wealth, since big American and European oil companies took most of the profits. OPEC member countries try to coordinate how much oil they produce, in order to keep prices high. [ …]

In the last few years of wars in the Middle East, the UAE adopted a more directly hostile posture toward Iran, including militarily, while other Gulf states sought a middle ground.

By leaving OPEC, the UAE’s main goal is to make more money by making more oil. Its production—a quarter of Saudi Arabia’s—has been held down by OPEC quotas.

But this decision also reflects a distancing from Saudi Arabia and a rapprochement with Israel and the U.S. The UAE continued its partnership with Israel, while Saudi Arabia stepped back after October 7, 2023. This rapprochement allowed the UAE to receive Israeli anti-missile weapons, for example.

More broadly, the UAE aims to pursue a policy independent from other Gulf states, particularly Saudi Arabia. In the wars in Yemen and Sudan, the two countries have supported opposing sides.

The UAE’s exit from OPEC is motivated by the desire to produce more oil, and to assert its own policy in the region: more independence from Saudi Arabia; closer ties with Israel and the U.S.; and more direct opposition to Iran.