Abu Dhabi National Oil Company (ADNOC) announced on May 3 that it plans to award contracts worth AED 200 billion (approximately $54.5 billion USD) between 2026 and 2028 to drive the country’s economic transformation.
According to CCTV News, the funds will support the company’s previously approved five-year capital expenditure plan, driving the entire industry chain into a new phase of large-scale project execution, while meeting the growing global energy demand and enhancing the UAE’s manufacturing capabilities and industrial resilience.
Public data shows that ADNOC was established in 1971 and is a state-owned energy giant wholly owned by the Emirate of Abu Dhabi, covering the entire oil and gas industry chain. It ranked 128th in the 2024 Global Brand Value 500 and 6th in the 2025 Global Oil and Gas Brand Value 50.
The latest project will be implemented in three core directions, covering strategic transformation. The funds will be used for economic diversification, supporting high-tech fields such as artificial intelligence, and aligning with the UAE’s transformation plan after exiting OPEC.
On April 28, the UAE, which has long been dissatisfied with OPEC’s quota management mechanism and decision-making model, announced its withdrawal from the organization, transforming from a traditional oil-producing country to a global clean energy governance participant, and announced its withdrawal from OPEC and the “OPEC+” mechanism starting from May 1.
Additionally, the UAE is deepening its cooperation with the International Energy Agency (IEA), including strategic coordination in achieving the 2050 net-zero emission target.
The UAE’s withdrawal from OPEC and “OPEC+” has reduced the organization’s oil production to about 45% of the world’s total oil production, which analysts believe will weaken OPEC’s market influence and increase the difficulty of controlling the market through production adjustments.
According to sources, “OPEC+” has agreed in principle to increase its crude oil production quota in June, with a daily increase of 188,000 barrels, and the formal decision is expected to be announced after the “OPEC+” countries’ meeting on the 3rd. This will be the first decision made by “OPEC+” after the UAE’s formal withdrawal.
According to IEA data, “OPEC+” controlled about 50% of the world’s total oil production in 2025.
OPEC issued a statement on May 3, stating that Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman will adjust their production and reaffirm their commitment to stabilizing the market. The seven countries decided to increase their production by 188,000 barrels/day from June, based on the additional voluntary production cuts announced in April 2023.
The countries will continue to closely monitor and assess the market situation, and reaffirm the need to take a cautious attitude in maintaining market stability, while maintaining flexibility to gradually increase, suspend, or cancel voluntary production cuts.
The seven “OPEC+” member countries also pointed out that this measure will provide an opportunity for participating countries to accelerate their compensation process, and the seven countries will fully compensate for any excess production since January 2024. The seven “OPEC+” member countries will hold a meeting every month to review the market situation, compliance, and compensation mechanisms, with the next meeting scheduled for June 7.
Unlike its Gulf neighbors with rich energy resources, the UAE has successfully developed a non-oil economy centered on finance, tourism, logistics, and real estate. According to the latest available data, the UAE ranks 7th in the global competitiveness ranking, with its per capita GDP second only to Qatar and Israel in the Middle East.
Among the emirate members, Dubai has become a global business and wealth hub connecting Asia, Africa, and Europe due to its strategic location, tax-free policies, free flow of funds, and stable political environment. Abu Dhabi, on the other hand, has heavily invested in renewable energy and technology industries, becoming a pioneer in economic diversification in the Middle East.
However, the UAE’s economy is highly dependent on external factors, particularly in terms of capital, population, energy markets, and geopolitical security. A typical example is that the UAE’s resident population is 10.24 million, with foreigners accounting for about 88%. A large portion of the country’s wealth is controlled by local families and the government.
However, the sudden outbreak of war has shattered the UAE’s image as a “safe haven,” dealing a multi-faceted blow to its security, energy, finance, and international image, while also accelerating its transformation from a resource-dependent economy to a knowledge- and service-driven economy.
The United Nations predicts that if the Iran war continues, the UAE’s GDP may shrink by about 5%, the most severe impact since the COVID-19 pandemic.
During the US-Iran war, Iran has launched substantial attacks on multiple US-related targets within the UAE, including military bases, energy facilities, and financial centers. The UAE’s Habshan natural gas facility and Bab oil field were affected, directly impacting the country’s core economic lifeline, with daily losses of billions of dollars in oil exports.
In the first quarter of this year, Dubai’s hotel occupancy rate dropped by about 40%, with tourism revenue losses exceeding $5 billion; foreign direct investment decreased by one-third. Additionally, due to the tightness of US dollar reserves, the UAE has used non-US dollar currencies in oil transactions, with the yield spread of US dollar-denominated Islamic bonds widening to a five-year high.
After the Middle East conflict escalated, high-net-worth individuals and family offices from the Middle East and Asia have flocked to other safe-haven destinations such as Hong Kong.
Meanwhile, the UAE is also preparing for the normalization of conflict. On April 28, Emirates Airlines, headquartered in Dubai, announced flight adjustments, stating that as the regional situation gradually stabilizes, the company’s flights to several important destinations in the Middle East will resume operations. Flights to Oman, Kuwait, and other regional destinations will be open for booking and resume operations starting from May 1.
