The United Arab Emirates announced on Tuesday it will withdraw from the Organization of the Petroleum Exporting Countries (OPEC) effective May 1, dealing a significant blow to the oil-producing bloc and its de facto leader, Saudi Arabia.

OPEC, which coordinates production policies among major oil producers to influence global supply and prices, accounts for roughly 36% of global oil output and nearly 80% of proven reserves.

Saudi Arabia is widely viewed as the group’s leader, but the UAE has been a key contributor, producing the third-largest output within OPEC behind Saudi Arabia and Iraq. The organization was founded in 1960 by Saudi Arabia, Iran, Iraq, Venezuela and Kuwait. Abu Dhabi joined in 1967, with the UAE maintaining membership after its formation in 1971.

In a statement, the UAE’s state-run news agency said the decision reflects the country’s “long-term strategic and economic vision and evolving energy profile” and serves its “national interest.”

The statement also pointed to regional instability amid the Iran war, including tensions in the Strait of Hormuz, as a factor shaping global energy dynamics.

Following its exit, the UAE said it will continue to act “responsibly,” gradually increasing production in line with market conditions.

“This decision does not alter the UAE’s commitment to global market stability or its approach based on cooperation with producers and consumers,” the statement said. “Rather, it enhances the UAE’s ability to respond to evolving market needs.”