Gulf States in May 2026: the most important developments in economy
In May 2026 the economic news from the Gulf States was dominated by the United Arab Emirates' departure from OPEC and from the Organization of Arab Petroleum Exporting Countries (OAPEC), announced on 4 May. The state oil company ADNOC accelerated a $55 billion investment plan, citing a new "freedom to produce", and the UAE said the exit was strategic and not directed against any country. Kazakhstan said it would stay in OPEC. OPEC+ agreed a modest quota increase, its third since the Strait of Hormuz closed, while OPEC output fell to a 36-year low and Saudi Arabia reported its lowest production since 1990.
The Strait of Hormuz remained the main factor for energy markets all month. Oil prices swung between roughly $100 and $111 a barrel on news of US-Iran talks, exchanges of fire and conflicting reports of a possible ceasefire deal. Gulf producers looked for detours: the UAE was reported to be moving oil on hidden tankers, and it sped up a bypass pipeline, now half complete with a 2027 start, and expanded export capacity at Fujairah. Qatar sent its first LNG shipment through the strait since the war began on 10 May. Iran demanded service fees from passing vessels; on 28 May the US sanctioned Iran's new Persian Gulf Strait Authority, and Qatar said the toll was negotiable. A drone strike hit the Fujairah oil hub on 4 May, and in mid-May the IAEA voiced grave concern over a drone strike near the UAE's nuclear power plant.
Company results and investment announcements continued. Saudi Aramco reported a 25% rise in quarterly profit and Emirates Airlines record profits, while Qatar Airways said it would skip staff bonuses. The UAE announced nearly $47 billion in industrial deals, Abu Dhabi's L'imad targeted a $30 billion infrastructure push with Temasek and GIP, and on 20 May the UK agreed a £3.7 billion trade deal with six Gulf states. At month end the UAE announced higher petrol and diesel prices for June and, on 31 May, shut down Iran's Red Crescent hospital in Dubai and froze its assets.
by WorldBrief & Maksim Micheliov | AI-generated summary
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