Analysis: UAE Withdraws from OPEC, Iran War Catalyzes New Geopolitics in the Middle East

The United Arab Emirates (UAE) has withdrawn from OPEC, catalyzing a new geopolitical order in the Middle East. This move is driven by the Iran war, the UAE's prioritization of national interests, deteriorating relations with Saudi Arabia, and strengthened security cooperation with Israel.
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  • 📰 Published: April 30, 2026 at 12:55
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US-Iran War Key News

Central News Agency

(Central News Agency, Dubai, 29th, comprehensive foreign reports) The United Arab Emirates' decision to withdraw from the Organization of the Petroleum Exporting Countries (OPEC) heralds a new geopolitical order in the Middle East, catalyzed by the Iran war. While the UAE strengthened security cooperation with Israel after the war broke out, the rift with Saudi Arabia deepened.

UAE officials familiar with the decision said the timing was arranged to create a shock effect, highlighting the UAE's national interests as a priority; however, another UAE official said there were no further plans to withdraw from other organizations, including the Arab League and the Organization of Islamic Cooperation (OIC).

The Wall Street Journal pointed out that new alliances are also redrawing the political interaction landscape between the Arab world and Israel. Insiders revealed that Israel recently sent its "Iron Dome" missile defense system and operating forces to the UAE, which is unimaginable elsewhere in the Arab world.

The US and Israel launched a war against Iran on February 28, giving the UAE, a small but extremely wealthy federation of monarchical emirates, an opportunity to step out of the shadow of its larger neighbor, Saudi Arabia.

The UAE stated that its withdrawal from OPEC is based on national interests and its commitment to meeting market oil demand.

The UAE's withdrawal from OPEC has its own practical considerations. Under the current quota system, about 30% of the UAE's production capacity is restricted, but the UAE currently needs additional revenue to offset the pressure on tourism and commercial revenues brought by the Iran war. After withdrawing from OPEC, the UAE will be able to significantly increase production on its own terms and invest funds in critical areas such as protecting export routes, for example, increasing investment in oil pipelines that bypass the Strait of Hormuz.

When oil was first discovered in the 1950s, the UAE was just a group of small emirates scattered along the eastern coast of the Arabian Peninsula. Since its establishment in 1971, the UAE has successfully transformed itself with oil wealth, becoming a global financial, tourism, and technology hub centered on Dubai and Abu Dhabi.

In recent years, UAE leader Sheikh Mohammed Bin Zayed (MBZ) has also sought to position the country as a military power, not afraid to use force and even employ mercenaries to expand its influence, attempting to reshape the regional landscape according to its own interests.

Although the UAE has only about 63,000 active military personnel, ranking only 10th in military strength in the Middle East, it projects influence far beyond its size through the procurement of advanced weapons, arms exports, and the deployment of mercenaries in conflicts such as Yemen.

The UAE Armed Forces are also considered one of the best-trained armies among the Gulf countries; former US Secretary of Defense Jim Mattis once called the UAE "Little Sparta."

For a long time, the UAE has been unwilling to be subservient to its larger neighbor, Saudi Arabia, one of the dominant players in the global oil market, and relations between the two countries have been poor from the outset: due to territorial disputes, the Saudi king refused to recognize the UAE for many years after its establishment in 1971.

For many years, Saudi Arabia and the UAE have been allies on the surface, but they have supported different factions in the conflicts in Sudan and Yemen, competing for influence in the Red Sea region, and have increasingly become economic rivals.

About 10 years ago, Mohammed and Saudi Crown Prince Mohammed bin Salman (MBS) established a deep relationship during an overnight desert camping trip, and Mohammed even mentored the younger Crown Prince Salman as they gradually rose to power. But then private conflicts between the two gradually intensified and became public in 2023, when they did not communicate for more than half a year.

Crown Prince Salman is trying to reduce Saudi Arabia's reliance on oil and hopes to challenge Dubai's status as a regional hub. He is promoting companies to move their regional headquarters to the Saudi capital Riyadh and is competing in tourism and artificial intelligence (AI) data center projects. This development path is almost contrary to the UAE.

Another major source of tension between the two countries is Saudi Arabia's dominant position in OPEC and its interest in maintaining high oil prices by limiting production. However, the UAE has a production capacity of nearly 5 million barrels per day, but according to OPEC policy, it is only allowed to produce 3.4 million barrels per day.

The Gulf countries once pledged to establish a common defense system, but with limited results. This Iran war has not united them, but rather alienated them further. Since US President Trump announced a ceasefire with Iran in early April, UAE officials have repeatedly expressed dissatisfaction with their neighbors, believing they did not strongly support pressure on Iran.

In 2023, under China's mediation, Saudi Arabia and Iran, long-time rivals in the Islamic world, reached a historic agreement in Beijing to restore diplomatic relations and ease tensions in the Middle East. On the eve of the US-Israel war against Iran, Iran told Saudi and Omani officials that if the US attacked, Iran's retaliatory strikes would focus on the UAE.

As the Iran war continues, the divergence between the UAE and countries like Saudi Arabia and Oman, which support diplomatic solutions, has further widened. The UAE has closed Iranian institutions within its borders, canceled some Iranian residents' visas, threatened to freeze Iranian assets, and urged all parties to take stronger military action against Iran.

Saudi Arabia, which suffered fewer attacks and lighter losses from Iran, publicly condemned the Iranian attacks but did not cut economic ties or support the UAE's resolution proposed to the UN Security Council authorizing military action to reopen the Strait of Hormuz.

The Wall Street Journal believes that the UAE chose to announce its withdrawal from OPEC, an important platform for the Arab world to demonstrate collective influence, at a time when Gulf leaders were holding a summit in Saudi Arabia to try to show unity. This clear action demonstrates its new strategic priorities and even its ambition to become a regional power. The UAE's momentous withdrawal from OPEC also signals the arrival of a new order in the Middle East. (Compiler: Chen Yiwei) 1150430

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