How Did Saudi Arabia And Pakistan Force UAE To Exit From OPEC? Fuels Major Rift Among Muslim Countries

Dubai: The United Arab Emirates has decided to withdraw from the Organization of Petroleum Exporting Countries (OPEC). The UAE has been a member of this organization for the past 60 years; therefore, its decision to leave now marks a significant development. The organization has historically consisted predominantly of Muslim nations. Consequently, the United Arab Emirates' decision to separate from this Muslim-majority bloc holds considerable significance.

Why did the UAE exit OPEC?

Experts suggest that the primary reason behind the UAE's exit is its differences with Saudi Arabia. Additionally, Pakistan is also believed to be a contributing factor. Differences between Saudi Arabia and the UAE have existed for years, though they had remained somewhat subdued due to the conflict with Iran; these tensions now appear to be resurfacing.

While talkng to the media, Firas Maksad, the Middle East Director at the Eurasia Group, stated that the United Arab Emirates no longer wishes to operate under any form of external pressure. Situations frequently arise where the UAE seeks to increase its oil production, while Saudi Arabia aims to reduce it. Under such circumstances, remaining a member of OPEC places the UAE under pressure to curtail its oil output. By withdrawing from the organization entirely, the country has now liberated itself from this pressure. Furthermore, the UAE is displeased with Pakistan, particularly regarding the latter's defense agreements with Saudi Arabia.

The underlying reason for this discontent is that Pakistan has repeatedly claimed to be mediating between Iran and the United States. While it did facilitate two meetings, Pakistan never once condemned Iran for attacks directed against the UAE. The UAE feels aggrieved by this stance and has accused Pakistan of opportunism. A UAE representative remarked that if Pakistan aspires to act as a mediator, it must conduct itself with genuine neutrality. As for the ultimate benefits of the UAE's withdrawal from the OPEC bloc, the reality is that it will effectively break free from Saudi control.

Why was the UAE frustrated with Saudi Arabia's quota system?

Within OPEC, the United Arab Emirates ranks as the third-largest oil-producing nation. It joined the organization in 1967. Nevertheless, production quotas for OPEC nations have historically been determined by Saudi Arabia. The UAE has frequently been allocated a quota lower than it desired. Now that it has distanced itself from the organization, it will be able to produce oil in accordance with its own preferences. Furthermore, in the event that global supply is disrupted, it will be able to capitalize on the situation by increasing its output. There will no longer be any need to restrict production due to OPEC's regulations.