The world's seventh-largest oil producer will exit the bloc on May 1, allowing it to gain greater 'flexibility to respond to market dynamics'
The UAE has announced it will withdraw from Opec after more than five decades.
The decision will take effect on May 1.
The statement was delivered as Opec prepared to meet in Vienna on Wednesday. It will also leave the broader Opec+.
"This decision follows a comprehensive review of the UAE’s production policy and its current and future capacity and is based on our national interest and our commitment to contributing effectively to meeting the market’s pressing needs," UAE state news agency Wam said.
"While near-term volatility, including disruptions in the Arabian Gulf and the Strait of Hormuz, continues to affect supply dynamics, underlying trends point to sustained growth in global energy demand over the medium to long term."
Wam said the decision "reflects a policy-driven evolution in the UAE’s approach, enhancing flexibility to respond to market dynamics while continuing to contribute to stability in a measured and responsible manner".
The move comes amid a major diversification drive by the UAE, where the non-oil economy now accounts for roughly 75 per cent of GDP.
However, the country has stated its desire to increase production from 3.4 million barrels per day to five million by 2027.
