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'Freedom to produce': UAE explains impact of Opec exit on energy strategy
UAE is ramps up energy, defence and trade strategy as senior leaders outline a post-crisis roadmap aimed at strengthening resilience, safeguarding supply chains
- PUBLISHED: Mon 4 May 2026, 5:24 PM
Editor's Note: Follow the Khaleej Times live blog for the latest regional developments with the US-Israel-Iran ceasefire now in effect.]
Senior UAE ministers and industry leaders outlined a sweeping strategy to safeguard supply chains, boost industrial capacity, and deepen global partnerships as the country navigates the fallout from recent regional tensions. Speaking during a high-level panel moderated by Hadley Gamble, officials stressed that resilience, flexibility and long-term planning are enabling the UAE to maintain growth and stability despite disruption.
‘Freedom’ after OPEC exit
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Suhail Mohamed Al Mazrouei, the minister of energy, said the UAE’s recent exit from Opec will give the country greater flexibility to align energy production with national priorities.
“This decision gives us the freedom to produce what we require and plan according to our industrial needs,” he said, adding that the UAE will continue to act as a responsible producer while supporting global market stability.
Mazrouei emphasised that energy security remains a key concern, particularly the need to keep critical shipping routes such as the Strait of Hormuz open.
“No one should be allowed to control this passage,” he said, warning that disruptions could trigger global supply shocks and disproportionately impact developing economies.
He added that the world will require increased production not only to meet rising demand but also to rebuild depleted strategic reserves. “The world will need more energy, period,” he said.
Defence capabilities ‘100x’
On the industrial front, Faisal Al Bannai highlighted rapid advancements in the UAE’s defence sector, noting that locally developed technologies played a decisive role in countering recent threats.
“We demonstrated that national capabilities can deliver when it matters most,” he said.
According to Al Bannai, around 85 per cent of drone attacks were neutralised using UAE-developed jamming systems. In some cases, technologies that would typically take years to develop were deployed within weeks.
“What used to take two years can now be done in two weeks,” he said, adding that the pace of innovation is expected to accelerate significantly. “Whatever we were doing before will now be multiplied many times over.”
He also pointed to a sharp rise in international demand for UAE-made defence products, with export orders growing from just 2 per cent six years ago to around 70 per cent last year.
Trade resilience and US ties
Meanwhile, Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, said the UAE’s trade sector continues to outperform, with total trade exceeding $1 trillion and strong growth sustained into 2026.
Despite periods of disruption, the country maintained supply chain stability by rerouting cargo, scaling up air freight, and leveraging its global logistics network, which connects it to more than 250 ports.
“This resilience is the result of decades of investment in infrastructure, connectivity, and policy,” he said.
Al Zeyoudi also revealed that the UAE is in discussions with the United States on a potential currency swap arrangement, describing it as part of an “elite group” framework rather than a financial bailout.
“Such agreements are typically reserved for major economies with strong trade and investment ties,” he said, highlighting the depth of UAE-US economic relations.
Looking ahead, he confirmed that the UAE will continue to channel investments into strategic domestic sectors while maintaining its global investment footprint. Major infrastructure and development projects are expected to be announced to sustain growth and reduce dependency on external markets.
Arwa Almazrouei is an Arabic editor passionate about storytelling and journalism, and creating impactful content that highlights culture, society, and the inspirational.