Tuesday, 02 January 2024 12:17 GMT

UAE Withdraws From Arab Oil Exporters Group Oapec After Opec Exit


(MENAFN- Khaleej Times)

Oapec, founded in 1968, does not set a production policy for its members but promotes cooperation among Arab oil-exporting countries
    By: Ajanta Paul

    The UAE has withdrawn from the Organisation of Arab Petroleum Exporting Countries (Oapec), according to a statement released by the alliance on Sunday. This announcement follows the UAE's surprise announcement on April 28 of its withdrawal from the Organisation of the Petroleum Exporting Countries (Opec) and the Opec+ alliance, in order to prioritise increasing its production.

    Oapec, founded in 1968, does not set a production policy for its members but promotes cooperation among Arab oil-exporting countries.

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    The General Secretariat of the Organisation of Arab Petroleum Exporting Countries (Oapec) said it had received a letter from UAE Minister of Energy and Infrastructure Suhail Mohammed Al Mazrouei, addressed to Libya's Oil and Gas Minister Dr Khalifa Rajab Abdul Sadiq, informing the body of the UAE's decision to withdraw from membership effective May 1, 2026.

    The group noted the UAE's contributions during its membership and its role in supporting Arab energy-sector cooperation. It added that Oapec will continue working to strengthen collaboration and integration among member states through its strategic programmes and initiatives.

    UAE's exit from Opec

    The UAE's exit from Opec, one of the group's biggest producers, could also free the country to increase output once exports via the Gulf resume, as it would no longer be governed by Opec quotas.

    Senior UAE officials and regional commentators have described the country's decision to exit Opec and Opec+ alliance as a sovereign, policy-driven shift aimed at enhancing production flexibility while maintaining its commitment to global market stability.

    UAE Energy Minister Suhail Mohamed al-Mazrouei said that the decision was taken after examining the country's energy strategies and that the issue was not discussed with any other country.

    "This is a policy decision, it has been done after a careful look at current and future policies related to level of production," Mazrouei said.

    According to the minister, the UAE left Opec and Opec+ on good terms and will continue working with members of the groups. "OPEC has been relatively calm about the decision," he said at the "Make It In The Emirates" conference on Monday.

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Khaleej Times

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