UAE’s energy strategy: OPEC exit to help boost industrial growth

The UAE’s decision to exit OPEC and reposition itself within the global energy landscape, is not a decision directed against anyone but a carefully considered strategic choice that reflects its confidence in the country’s capabilities and its ambition for a more diversified economy, two of the country’s top ministers said on Monday.

“The United Arab Emirates sovereign decision to reposition itself within the global energy landscape, and to exit OPEC and OPEC+, is not a decision directed against anyone,” H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO, said in his keynote address at the Make it in the Emirates forum in Abu Dhabi. “It is a carefully considered strategic decision that reflects our confidence in our capabilities, and our ambition for a more diversified economy and a better future”, he said.

“The United Arab Emirates’ sovereign decision to reposition itself within the global energy landscape, and to exit OPEC and OPEC+, is not a decision directed against anyone. It is a carefully considered strategic decision that reflects our confidence in our capabilities, and our ambition for a more diversified economy and a better future.”
- H.E. Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and ADNOC Managing Director and Group CEO

Supporting stable global markets

Speaking at the same forum, H.E. Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure, said the UAE’s exit from OPEC and OPEC+ was a strategic imperative in line with its future ambitions and the country would continue to be a provider of reliable, responsible, and lower-carbon energy supply while supporting stable global markets.

“We are a responsible producer … We're dealing with many of the world class industrial countries that are dependent on us, and we owe it to those partners who elected to invest the UAE to produce what the world requires, without restrictions, with collaboration, of course, with all other producers”, he said. “We are not new to this market. We understand that we will always be acting responsibly. Hopefully, we will contribute as well to world stability between supply and demand”, he added.

“We are not new to this market. We are a responsible producer … We're dealing with many of the world class industrial countries that are dependent on us, and we owe it to those partners who elected to invest the UAE to produce what the world requires, without restrictions, with collaboration, of course, with all other producers.”
- H.E. Suhail Al Mazrouei, UAE Minister of Energy and Infrastructure

'Reopen Hormuz without any restrictions'

Both the ministers were categorical in their view that the Strait of Hormuz must remain open without any restrictions for the benefit of the global economy. “The Strait of Hormuz must never be used as a tool of coercion. Freedom of navigation is non-negotiable”, H.E. Dr Al Jaber said. Highlighting that the continued closure of the Strait was a security issue rather than a supply issue, the ministers observed that opening the waterway was the only way to stabilise global markets.

A bulk of the global energy supplies and maritime traffic that uses the strategic chokepoint has come to a standstill following the Middle East conflict that started on 28 February, revealing a key vulnerability for global trade.

Highlighting how the industrial sector plays a key role in accelerating the UAE economy, with its contribution leapfrogging by 70% to reach Dh200 billion ($55 billion), H.E. Dr Al Jaber identified energy, technology and industry as the key pillars of the economy. “Those who manufacture, own their decisions. Those who build, own their future. And those who combine both, secure their sovereignty and resilience”, he said.

ADNOC announces $55b investment

The comments came a day after ADNOC announced plans to award AED200 billion ($55 billion) in projects between 2026 and 2028, marking the next phase of its five year AED550 billion ($150 billion) capital expenditure plan and reinforcing its focus on domestic supply chains.

ADNOC said the planned awards – announced at the Make it with ADNOC forum – will reinforce delivery of the capital expenditure plan its board approved last year, which it described as an execution phase across large-scale developments.

Addressing the forum, H.E. Dr Al Jaber said ADNOC was entering a defining phase focused on pace, scale, and delivery. “As we deliver on this phase of growth, we are bringing together leading EPC contractors with 70 top UAE manufacturers to enhance accountability, maximise in country value and ensure Made in the Emirates products are first choice across our projects, and are at the core of how we procure, build, and execute”, he said.

Scaling industrial participation

Central to the announcement is ADNOC’s Local+ initiative — part of its ICV programme — which prioritises Made in the Emirates products that meet the company’s technical standards across project procurement.

The forum connected EPC contractors with 70 UAE based manufacturers that meet the required technical and qualification standards. According to ADNOC, the approach is intended to strengthen domestic supply chains and embed qualified local manufacturers more systematically into its project execution model.

By outlining awards through 2028, ADNOC has given suppliers a clearer view of upcoming opportunities. The awards are expected to span the company’s value chain, including upstream, downstream, and supporting infrastructure.