What is the common examiner trap about Intl. Relations in UPSC exams?

They may ask about the 'percentage of global oil production' affected, confusing OPEC's share (almost half) with the UAE's specific share (4-5% of OPEC+). Another trap is asking which country left OPEC 'to focus on gas' (Qatar in 2019), not the UAE.

What should UPSC aspirants remember about Intl. Relations for Prelims?

1. Target this Data: 9 million Indian migrants in GCC region; over $50 billion annual remittances. 2. Target this Nodal Body: Gulf Cooperation Council (GCC); International Energy Agency (IEA). 3. Target this Legal Point: India's associate membership in IEA (does not grant decision-making power).

International RelationsEconomy

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News 13 of 27

UAE Exits OPEC After 60 Years; India Faces Remittance Risk for 9 Million Migrants and $50 Billion Inflows

Q: The Gulf Cooperation Council (GCC) is a regional bloc. Which of the following countries is NOT a member of the GCC?

Iran, The GCC members are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. Iran is not a member and is often a geopolitical rival to several GCC states.

Q: Consider the following statements regarding the UAE's exit from OPEC: 1. The UAE had been a member of OPEC for almost 60 years before its exit. 2. The primary reason for its exit was its desire to increase oil production, which was constrained by OPEC quotas. 3. This exit will immediately lead to a significant drop in global oil prices due to increased supply. Which of the statements given above is/are correct?

Both 1 and 2, Statement 1 is correct as per the article (almost 60 years of membership). Statement 2 is correct; the article states the UAE wanted to expand production beyond quotas. Statement 3 is incorrect; the article says the move will have 'little immediate impact' due to the Strait of Hormuz blockade, and price effects are expected in the medium to long term.

Q: According to the article, approximately how many Indian migrants are working in the Gulf Cooperation Council (GCC) region?

9 million, The article explicitly states that there are nine million Indian migrants in the GCC region, most of them low-wage workers. This is a critical data point for understanding the human and economic scale of India's diaspora in the area.

Q: What is a significant implication of the UAE's exit from OPEC for India's economy, as highlighted in the article?

Potential volatility in remittance inflows exceeding $50 billion annually., The article identifies rising instability in the Gulf as a key risk, which could make remittance inflows (over $50 billion annually) 'less stable'. The other options are incorrect: oil price relief is potential and not immediate; sovereign fund investments are at risk of suspension; and India's IEA status remains associate membership without a decision-making seat.

Intl. Relations EconomyHIGH

Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link

29 Apr 2026

~2 min

Source: Indian Express

Key Data:9 million Indian migrantsOver $50 billion remittances60 years UAE membership4-5% of OPEC+ production

Bodies:OPECGCCIEA

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~2 min · Quick mode

What This Article Covers

1.UAE announced its exit from OPEC after almost 60 years, driven by disagreements with Saudi Arabia and a desire to increase oil production beyond OPEC quotas.

2.The move could weaken OPEC's pricing power, as UAE's production (4-5% of OPEC+) will no longer follow quotas, and raises questions about the future of Gulf Cooperation Council (GCC) unity.

3.For India, key risks include instability for 9 million migrant workers in the Gulf, volatility in over $50 billion in annual remittances, and potential disruption of sovereign wealth fund investments, though increased UAE production may lower oil prices.

The Big Picture

Prelims · HighMains · High

The UAE's departure from OPEC after nearly six decades signals a major geopolitical and economic realignment in the Gulf. For India, this move threatens the stability of $50+ billion in annual remittances and the safety of 9 million migrant workers, while potentially offering long-term relief from high oil prices. Aspirants must analyze the implications for India's energy diplomacy and diaspora security.

Exam Lens

Quick Exam Facts From News

UAE OPEC MembershipAlmost 60 years

Indian Migrants in GCC9 million

Annual Remittances from GCCOver $50 billion

OPEC+ Global Production Share (Pre-exit)Almost half

UAE Production Share of OPEC+4-5%

1-Minute Revision

›UAE OPEC Membership: Almost 60 years
›Indian Migrants in GCC: 9 million
›Target this Data: 9 million Indian migrants in GCC region; over $50 billion annual remittances.
›Target this Nodal Body: Gulf Cooperation Council (GCC); International Energy Agency (IEA).
›Target this Legal Point: India's associate membership in IEA (does not grant decision-making power).

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News Snapshot

🛢️

OPEC Fracture

The UAE exited OPEC after 60 years, challenging the cartel's quota system and potentially weakening its global oil pricing power.

🇮🇳

Diaspora at Risk

India's 9 million low-wage migrant workers in the Gulf and over $50 billion in annual remittances face instability due to rising UAE-Saudi tensions.

⚖️

Energy Security Dilemma

India must balance its diplomatic ties with Gulf states, its associate membership in the International Energy Agency (IEA), and the pursuit of stable, affordable energy imports.

Detailed Analysis & Strategic Depth

Context / Background

OPEC, founded in 1960, has used production quotas to influence global oil prices. The UAE joined nearly 60 years ago. Recent disagreements with Saudi Arabia over regional conflicts in Sudan and Yemen, coupled with the UAE's desire to maximize its low-cost production, led to this exit. This follows Qatar's 2019 exit to focus on gas and Indonesia's previous suspensions.

Core Analysis & Implications

The exit exposes a fundamental rift in Gulf geopolitics and economic strategy. Saudi Arabia traditionally favored supply constraints for high prices, while the UAE, with lower production costs, prioritizes volume. This could erode OPEC's cohesion and pricing power. For India, beyond oil price volatility, the core concern is the welfare of its massive diaspora and the stability of crucial remittance inflows, which are a key component of India's current account. Gulf sovereign wealth fund investments in India may also face delays or redirection.

Future Outlook / Way Forward

India needs a multi-pronged strategy: intensify diplomatic engagement with both UAE and Saudi Arabia to ensure migrant safety, diversify energy sources and import partners, and strategically leverage its IEA associate status. The event underscores the need for India to critically evaluate its participation in international energy clubs and use its diplomatic capital to build resilient, long-term energy security frameworks beyond traditional supplier relationships.

Key Facts at a Glance

UAE OPEC MembershipAlmost 60 years

Indian Migrants in GCC9 million

Annual Remittances from GCCOver $50 billion

OPEC+ Global Production Share (Pre-exit)Almost half

UAE Production Share of OPEC+4-5%

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Practice exam-style questions based on this article.

Q1Static LinkageEasyUPSC, SSC, Banking

The Gulf Cooperation Council (GCC) is a regional bloc. Which of the following countries is NOT a member of the GCC?

Q2Statement-basedHardUPSC, SSC

Consider the following statements regarding the UAE's exit from OPEC:

1. The UAE had been a member of OPEC for almost 60 years before its exit.

2. The primary reason for its exit was its desire to increase oil production, which was constrained by OPEC quotas.

3. This exit will immediately lead to a significant drop in global oil prices due to increased supply.

Which of the statements given above is/are correct?

Q3Data-centricMediumUPSC, SSC, Banking

According to the article, approximately how many Indian migrants are working in the Gulf Cooperation Council (GCC) region?

Q4Application/ImpactMediumUPSC, Banking

What is a significant implication of the UAE's exit from OPEC for India's economy, as highlighted in the article?

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UAE Exits OPEC After 60 Years; India Faces Remittance Risk for 9 Million Migrants and $50 Billion Inflows

Exam Lens

Quick Exam Facts From News

1-Minute Revision

News Snapshot

OPEC Fracture

Diaspora at Risk

Energy Security Dilemma

Detailed Analysis & Strategic Depth

Context / Background

Core Analysis & Implications

Future Outlook / Way Forward

Prelims Flashpoints

Key Facts at a Glance