The United Arab Emirates, a major oil exporter to India, declared its departure from the Organization of Petroleum Exporting Countries (OPEC) due to fallout from the Iran conflict. This move, announced through the Emirates News Agency, WAM, aligns with the UAE’s long-term strategic vision and evolving energy stance. Effective Friday, the UAE’s exit signifies its commitment to a responsible and forward-looking role in global energy markets.
Following its withdrawal, the UAE plans to responsibly increase production in line with market demand and conditions. Known for producing cost-competitive and lower-carbon oil, the UAE aims to support global growth and emissions reduction. Last year, the UAE ranked among the top oil suppliers to India, with a trade value of $13.5 billion in 2024, according to UN data.
The UAE, positioned as the fifth-largest petroleum producer within OPEC, is focusing on diversifying its economy away from oil dependency. Initiatives like “Operation 300bn” aim to boost manufacturing, expand exports, and attract foreign investments. OPEC, established in 1967, historically influenced global oil prices but has seen its dominance challenged by other major exporters like the US, Russia, and Canada.
