UAE, Iran, and Saudi Arabia are three of the 6 nations asked to join the BRICS group.
In an exciting development, the BRICS group, which includes Brazil, Russia, India, China, and South Africa, is set to welcome new members after over a decade.
Saudi Arabia and the United Arab Emirates, known for their significant oil prowess, have received invitations to join this influential alliance of developing nations. Alongside them, Iran, Egypt, Ethiopia, and Argentina have also been extended invitations, as announced by South African President Cyril Ramaphosa, marking a milestone at the annual BRICS summit in Johannesburg.
All of these invited countries had previously expressed keen interest in becoming part of the BRICS family. The current members, often referred to as the BRICS nations, are enthusiastic about broadening their coalition to include these newcomers. This expansion is scheduled to take effect from the first day of January in the year 2024, ushering in a new chapter of collaboration and cooperation among these diverse economies.
In a show of camaraderie, Russian President Vladimir Putin conveyed his congratulations to the fresh entrants through a video message. He emphasized that the BRICS bloc’s global influence will only continue to grow, underscoring the significance of this expansion.
Chinese President Xi Jinping hailed this expansion as a historic event, a testament to the group’s determination to foster unity and collaboration among developing countries. He highlighted that this move would inject renewed energy into the BRICS cooperation mechanism, thereby bolstering global peace and development.
The inclusion of Saudi Arabia, a pivotal player in the oil industry, in the BRICS group is particularly noteworthy. It places the world’s largest crude oil exporter alongside the world’s foremost oil importer, China. Additionally, the entrance of both Russia and Saudi Arabia, both members of the OPEC+ alliance that includes major oil producers, into this new economic coalition raises interesting prospects. While these two countries have often coordinated their oil production, their convergence within BRICS opens avenues for further collaboration, even as they navigate complex relationships, including those with the United States.
An intriguing aspect of this expansion is its potential impact on the international monetary landscape. The concept of de-dollarization, wherein member nations gradually shift away from using the US dollar in trade, has been a topic of discussion. There have also been talks about the feasibility of a common currency among BRICS countries. Although the idea has been met with skepticism and labeled “unlikely” by analysts in the near term, leaders like Putin have acknowledged these challenges and expressed the intent to address them.
While the BRICS group’s expansion is exciting, it also raises questions about its future dynamics. Notably, some of the new members, including Russia and China, are currently navigating heightened tensions with Western nations. The inclusion of countries like Iran, which have strained relations with the West, could potentially tilt the group’s balance toward becoming more of an anti-Western alliance, according to experts.
BRICS has its roots in the term coined by economist Jim O’Neill to describe key emerging markets. Despite the differences in political and economic systems among its members, the group has continued to evolve and maintain its presence on the global stage. The decision to enlarge its membership comes at a time when the global economy, geopolitics, and international relations are undergoing shifts and transformations.
In response to their invitations, the leaders of the new member countries have expressed their eagerness to contribute to BRICS. Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan highlighted the importance of the shared principles of sovereignty, independence, and non-interference in internal affairs. He emphasized his nation’s commitment to being a secure and reliable energy provider, reinforcing the strong economic ties between Saudi Arabia and the existing BRICS nations.
All in all, this expansion marks a significant milestone in the journey of the BRICS group. As these diverse economies come together, they hold the potential to shape international relations, influence economic growth, and play a substantial role in the ever-evolving global landscape.
By: M Z Hossain, Editor Sky Buzz Feed
