UAE Exits OPEC as Government Repositions Energy Strategy and Boosts Local Industry
UAE exits OPEC to reposition in global energy, Minister Sultan Al Jaber says; UAE raises industrial procurement to AED180bn and aims to localise 5,000 products.
The UAE has announced a sovereign decision to exit OPEC and OPEC+ as part of a strategic repositioning in the global energy landscape, Minister of Industry and Advanced Technology Sultan Al Jaber said at the opening of the “Make in UAE” expo. The announcement underscores a policy shift designed to strengthen national economic diversification while safeguarding trade and maritime security. Officials framed the move as forward-looking, aimed at building resilience and expanding the country’s industrial base.
Minister frames crises as opportunities for growth
Minister Sultan Al Jaber described the UAE’s approach to crises as proactive, stressing that the country seeks to convert challenges into opportunities for renewed growth. He contrasted mere endurance with active repositioning, saying the UAE chooses to emerge from disruptions stronger and more competitive. The remarks were delivered to a national audience of industry leaders and investors at a prominent manufacturing and investment platform.
Al Jaber linked the nation’s strategic shifts to long-term industrial and economic goals, emphasising that the exit from OPEC is not adversarial but part of a planned transition. He said the decision supports a broader ambition to deepen domestic capabilities and accelerate sectors of the future.
Government underscores freedom of navigation and Strait of Hormuz position
Addressing maritime security and global trade, the minister issued a firm statement on the legal status of international waterways, warning against attempts to hold the Strait of Hormuz hostage. He maintained that freedom of navigation is non-negotiable and that any effort to alter the legal regime of such choke points would pose a serious threat to global economic stability. The comments reflect the UAE’s longstanding position on secure sea lanes that underpin international commerce.
Officials noted that stability in maritime corridors is essential for energy flows and global supply chains, and that the UAE will continue to advocate for rules-based approaches to navigation. The minister’s remarks sought to reassure partners about the country’s commitment to predictable and lawful trade routes.
Sovereign energy decision framed as strategic, not targeted
Government spokespeople clarified that the decision to leave OPEC and OPEC+ is a sovereign policy choice aimed at strengthening the UAE’s own strategic options rather than targeting any country or organisation. The move is presented as part of a deliberate roadmap to diversify national economic drivers and invest in new energy-related technologies and industries. Authorities described the repositioning as consistent with long-term national priorities, including decarbonisation and industrial modernisation.
The UAE’s messaging emphasised continuity in international engagement while underlining the autonomy of its energy policy choices. Leaders signalled that existing trade and diplomatic ties remain a priority amid the structural shift.
Factory orders and procurement target lifted to AED180bn
As part of the industrial push, the government announced an increase in planned industrial procurement from AED168 billion to AED180 billion over the next decade. The higher procurement ceiling is intended to channel public and private demand toward locally manufactured goods and services. Officials said the adjustment will create guaranteed demand that supports new factories, suppliers and value-chain investments across the Emirates.
The procurement boost is coupled with incentives and partnership opportunities aimed at accelerating private-sector involvement in manufacturing projects. Authorities signalled that public procurement policies will be used as a lever to scale up national production capacity in strategic areas.
Localisation drive to include 5,000 strategic products
A central pillar of the strategy is a localisation target to domestically produce more than 5,000 products across strategic sectors linked to economic, food and health security. The plan focuses on industries where local production can reduce dependence on imports and increase supply chain resilience. Officials said the localisation effort will be supported by targeted investment, industrial cluster development and technology transfer programs.
Industry stakeholders at the expo were told procurement guarantees and regulatory support will be aligned to facilitate the transfer of manufacturing knowledge and the growth of supplier networks. The ministry highlighted opportunities for SMEs and international firms to partner in building resilient local value chains.
Economic diversification and implications for markets
Analysts say the UAE’s exit from OPEC and the industrial commitments signal a pragmatic rebalancing of national priorities toward long-term diversification. By leveraging procurement, localisation and a clarified energy posture, the government aims to broaden revenue sources and stimulate high-value manufacturing. The measures could also influence regional energy market dynamics by underscoring the UAE’s independent policy trajectory.
Officials emphasised that the strategy is centered on sustainability, innovation and competitiveness, with an eye to emerging energy technologies and non-oil sectors. Stakeholders will be monitoring how these shifts translate into investment flows and industrial partnerships in the coming years.
The government presented the package as a coordinated set of policies to strengthen national resilience, protect critical supply routes and accelerate industrial development.