The United Arab Emirates (UAE) has announced its withdrawal from the Organization of Petroleum Exporting Countries (OPEC) effective May 1, 2026, a move that will significantly impact the cartel by removing one of its largest producers, accounting for 12% of its total oil output. This decision highlights the growing rift between the UAE and Saudi Arabia, OPEC's leading member, as both countries have diverged in their oil production strategies over recent years. The UAE has expressed dissatisfaction with OPEC's production quotas, which it believes hinder its ability to capitalize on its oil reserves. With plans to increase its production capacity from 3.4 million barrels per day to 5 million barrels per day by 2027, the UAE aims to monetize its resources more effectively in light of potential future declines in global oil demand. The ongoing tensions, particularly over issues in Yemen, have further strained relations, leading to the UAE's decision to prioritize its national interests and strengthen ties with the U.S. and Israel, rather than remain part of a Saudi-dominated organization. This withdrawal may also prompt the UAE to reconsider its memberships in other regional groups, reflecting a significant shift in Gulf alliances.