Dubai: The United Arab Emirates’ decision to exit OPEC marks a significant shift in global energy politics, with geopolitical tensions involving Saudi Arabia and Pakistan playing a notable role, according to a report by NDTV. The move comes at a time of heightened instability in the Middle East, particularly amid the ongoing conflict involving Iran.
As reported by NDTV, the UAE had grown increasingly dissatisfied with OPEC’s production framework, largely influenced by Saudi Arabia, which has traditionally led the group’s oil output strategy. The quota system limited Abu Dhabi’s ability to increase production and maximise revenue, prompting it to seek greater independence in managing its oil exports.
Another key factor behind the decision was the UAE’s frustration with regional dynamics, including Pakistan’s stance during the Iran conflict. Islamabad’s role as a mediator between the United States and Iran reportedly did not align with Abu Dhabi’s expectations, as the UAE preferred a stronger response against Tehran. This perceived neutrality added to tensions between the UAE and Pakistan.
The report further highlighted that the UAE had already signalled its displeasure by recalling financial deposits worth billions of dollars from Pakistan, indicating strained relations. Saudi Arabia later stepped in to support Pakistan financially, underscoring the evolving alliances within the region.
Additionally, the UAE’s push for a coordinated military response against Iran did not receive consensus within the Gulf Cooperation Council (GCC), particularly from Saudi Arabia and Qatar. This lack of unified action contributed to Abu Dhabi’s decision to prioritise its own strategic and economic interests.
By exiting OPEC, the UAE aims to boost oil production and strengthen its position in global energy markets. While the move may weaken OPEC’s cohesion, it also signals a shift toward independent policymaking in an increasingly complex geopolitical landscape.
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