Why Has the UAE Left OPEC?
The United Arab Emirates has left OPEC, citing significant economic losses due to production quotas that limit its oil output despite its low production costs. The decision reflects both economic incentives—estimated at $50 billion to $70 billion in annual forgone revenue—and shifting geopolitical alignments, particularly with Saudi Arabia. Advances in global oil production technologies and the rise of non-OPEC producers like the United States have weakened OPEC's influence, reducing its share of global oil output to about 36% in 2025.
- ▪The UAE left OPEC because membership cost it an estimated $50 billion to $70 billion annually in lost revenue due to production restrictions.
- ▪The UAE is one of the most efficient oil producers, able to extract oil at a lower cost than many OPEC members, including Saudi Arabia.
- ▪OPEC's global oil production share dropped to about 36% in 2025, down from a majority in the 1970s, due to the rise of non-OPEC producers.
- ▪Technological advances such as hydraulic fracturing and horizontal drilling in the U.S. and North Sea have reduced OPEC’s market dominance.
- ▪The UAE’s decision was influenced by both economic factors and a growing geopolitical divergence from Saudi Arabia.
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Kevin D. Williamson / May 1, 2026 Why Has the UAE Left OPEC? Because cartels don’t work. Economics The Crown Prince of Abu Dhabi, United Arab Emirates, attends a meeting with China's President Xi Jinping at the Great Hall of the People on April 14, 2026, in Beijing, China. (Photo by Haruna Furuhashi/Getty Images) The Crown Prince of Abu Dhabi, United Arab Emirates, attends a meeting with China's President Xi Jinping at the Great Hall of the People on April 14, 2026, in Beijing, China. (Photo by Haruna Furuhashi/Getty Images) Audio Audio Turn any article into a podcast. Upgrade now to start listening. Text Size Members can share articles with friends & family to bypass the paywall.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Dispatch.
