UAE and Saudi Arabia Officially Join the BRICS Group

  • Publish date: Tuesday، 02 January 2024
UAE and Saudi Arabia Officially Join the BRICS Group

On January 1, 2024, Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia officially became members of the BRICS group, expanding its original lineup of Brazil, Russia, India, China, and South Africa.

Originally invited at the 15th BRICS summit in August 2023 in Johannesburg, Argentina had withdrawn its invitation in December. The group, initially formed in 2006, aimed to foster cooperation among emerging markets and developing countries, gaining significance on the global stage. With the new additions, the BRICS now has ten members, including economic powerhouses UAE and Saudi Arabia from the Middle East.

The expansion signals a potential shift in the economic world order, challenging the dominance of the US-led system. The BRICS, seen as an alternative to traditional Western influence, seeks mutual dependence and increased global influence.

The combined population of the expanded BRICS is approximately 3.5 billion, with a total economy valued at over $28.5 trillion, constituting around 28% of the global economy.

While the growth signifies geopolitical changes, some analysts express uncertainty about whether the expansion will enhance or hinder BRICS' overall power.

Concerns include potential differences within the group weakening decision-making. However, the BRICS countries aim for greater representation of emerging economies and reduced dependence on the US dollar. In the pursuit of economic collaboration, Brazil's president proposed a common currency for trade and investment among BRICS nations in August of the previous year.

When was the BRICS founded?

Established in June 2006 during the St. Petersburg Economic Forum as BRIC (before South Africa's inclusion), the organization is a group of associated states involving ministers of economy from Brazil, Russia, India, and China. As of August 2023, approximately 40 nations have shown interest in joining BRICS, with around 20 submitting official membership applications.

This article was previously published on UAE Moments.To see the original article, click here