UAE says Opec exit 'not directed against anyone'

AFP: The United Arab Emirates’ shocking decision to leave Saudi-dominated Opec was not targeted at anyone, the UAE minister who heads the state oil giant said on Monday.

The move aimed at focusing on national priorities and the UAE economy, said Sultan Al Jaber, who is CEO of state-owned Abu Dhabi National Oil Company (Adnoc) and the country’s industry and advanced technology minister.

The decision, which took effect on Friday, followed months of tensions with neighbouring Saudi Arabia, the world’s top oil exporter and de facto leader of Opec, over foreign policy, oil output and the Middle East war, which has strained Gulf economies.

A close partnership between the Gulf nations has turned into an open rivalry since a public falling out in December over Yemen, but the minister said the decision to withdraw from the oil cartel was not aimed at any nation.

“The UAE’s sovereign decision to reposition itself within the global energy landscape, and to exit Opec and Opec+, is not a decision directed against anyone,” he told a conference in Abu Dhabi.

The exit of the UAE, which was Opec’s fourth-largest producer, dealt a blow to the cartel’s ability to control oil prices.

It also further strained UAE-Saudi ties, which plunged after their row over Yemen in December, according to analysts. The two sides have long been at odds over Opec production quotas.

Leaving Opec “serves our national interests and long-term strategic objectives, aligns with our industrial, economic, and developmental ambitions, and gives us greater ability to accelerate investment, expand, and create value”, Jaber said.

“This move was not done in isolation,” he said at the ‘Make It In The Emirates’ conference on the UAE industry.

“It is part of a broader effort to reshape our economy and industrial base through a vision that connects energy, technology, and industry, aligning our resources with national priorities to build a stronger, more resilient economy.”

While the UAE is not the first country to leave Opec, it is by far the biggest producer to do so.

The UAE has long been frustrated with Opec’s quotas, which sought to cap Emirati production at 3.4 million barrels a day.

Abu Dhabi seeks to expand the UAE’s production capacity to five million barrels a day by 2027.

On Sunday, Adnoc pledged to spend $55 billion on new projects over the next two years.

The added revenue from oil sales would allow the UAE to step up its investments in artificial intelligence and other high-tech sectors, some analysts have said.

“There is a great difference between those who focus only on surviving crises … and those who seize them as opportunities … and turn them into new beginnings,” Jaber said.