The Abu Dhabi National Oil Company (ADNOC) on Sunday announced plans to spend 200 billion dirhams, or about $55 billion, on new energy projects over the next two years. This came just days after the United Arab Emirates (UAE) officially left the OPEC oil cartel.
ADNOC said the spending plan will cover projects between 2026 and 2028 across both upstream and downstream operations. The company said the investments will help the UAE increase oil and gas production capacity and respond faster to global energy demand.
The announcement came only days after the UAE formally exited OPEC on May 1. The country said it wanted more freedom to increase production without being limited by collective decisions made by the oil-producing group.
“ADNOC today confirmed it is accelerating growth and delivery of its strategy with AED 200 billion ($55 billion) in new project awards for 2026-2028,” the company said in a statement, reported AFP.
The UAE’s departure marks one of the biggest changes inside OPEC in years. The country had been a member through Abu Dhabi since 1967, years before the UAE became an independent nation in 1971.
The move also exposed long-running tensions between the UAE and Saudi Arabia, which leads OPEC. Abu Dhabi had repeatedly pushed for higher production quotas while Saudi Arabia favored tighter limits to support oil prices.
Before leaving OPEC, the UAE ranked as the fourth-largest producer in the OPEC+ alliance and accounted for nearly 13% of total OPEC production, reported Bloomberg.
Why did UAE leave OPEC?
The UAE said recent regional conflicts and disruptions in global oil flows made it harder to operate under OPEC’s system of production controls.
The war involving Iran, Israel and the United States created pressure on energy markets across the Gulf region. Attacks linked to the conflict damaged infrastructure and disrupted shipping routes near the Strait of Hormuz, one of the world’s most important oil transit routes.
The UAE stated that fast-moving market conditions now require quicker decisions and more flexibility.
Officials also pointed to years of frustration over production caps set by OPEC. Saudi-led quotas limited UAE production to about 3.4 million barrels per day even as the country invested heavily in expanding its oil capacity.
Abu Dhabi now aims to raise production capacity to five million barrels per day by 2027, reported Free Malaysia Today .
“ADNOC is entering a defining execution phase in its strategy, driven by scale, pace and a laser-focus on delivery,” UAE Minister of Industry and Advanced Technology and ADNOC Chief Executive Officer Sultan Al Jaber said in the company statement.
Energy analysts believe the UAE wants to use its modern infrastructure and large reserves to gain market share while demand remains strong in Asia and other growing economies.
The UAE has spent billions of dollars over the last decade modernizing oil fields, refineries and export facilities. ADNOC has also expanded investments in petrochemicals, natural gas and cleaner energy technologies.
What does ADNOC’s new spending plan include?
ADNOC said the project awards will support both upstream and downstream operations. Upstream activities include oil and gas exploration and production, while downstream operations include refining, petrochemicals and industrial manufacturing.
The company said the new investments will strengthen industrial resilience and boost manufacturing inside the UAE.
“The planned project awards span ADNOC’s upstream and downstream operations and usher in a new phase of project delivery that will supercharge UAE’s manufacturing capacity,” the company said, reported Bloomberg.
The announcement came at the same time as seven remaining OPEC+ countries agreed to increase oil-production quotas during their first meeting since the UAE’s departure.