Following the summit held on August 22-24 in South Africa, BRICS is going to admit six new member countries. Along with the United Arab Emirates, the bloc will include Argentina, Iran, Saudi Arabia, Egypt and Ethiopia. According to Maksim Zagornov, Business Ambassador of Business Russia to the UAE, the expansion of BRICS will enable the member countries to foster trade within the bloc, as well as to set the global economic agenda.
BRICS (acronym for Brazil, Russia, India, China, and South Africa) is an interstate association of five states: Brazil, Russia, India, China and South Africa. It was founded in June 2006 in the frames of St. Petersburg International Economic Forum and is considered as an alternative to the G7 developed countries by some experts.
In the course of the three-day summit held on August 22-24 in Johannesburg, the UAE, Saudi Arabia, Egypt, Argentina, Iran and Ethiopia were officially invited by Cyril Ramaphosa, president of South Africa, to become members of the BRICS block. The countries were selected according to the geographical principle. The official procedure of the new members entrance is expected to take place on January 1, 2024.
Totally, 23 countries have applied to join the BRICS. There are 6 more Arab states in line to join the bloc: Algeria, Bahrain, Kuwait, Morocco, Tunisia and Syria.
The expansion of the BRICS bloc has already been called a historic event. According to analysts, it may result in a "different world order" to reflect a shift of the global economic and financial footprint towards the East.
The expanded BRICS countries will account for about 43% of the world's population, about 14 -16% of international trade transactions and 1/4 - 1/3 of global GDP.
According to Maksim Zagornov, Business Ambassador of Business Russia to the UAE, the expansion of BRICS will enable the member countries to foster trade within the bloc, as well as to set the global economic agenda.
"The entry of the key oil exporters, such as the UAE and Saudi Arabia, into BRICS will increase the economic influence of the bloc and expand its strategic capabilities. Besides, it will help to boost trade within the union. It should be noted that the UAE and Saudi Arabia have long been the largest BRICS trade partners in the Middle East, and joining the bloc will further expand commerce between the BRICS member countries. Of course, the main intrigue today remains the question of whether BRICS members will take steps to intensify two-way payments to facilitate trade. As you know, last week, India and the UAE initiated settlements under bilateral transactions using local currencies in the frames of the agreement signed this year. It is possible that this precedent will encourage further financial integration within the bloc to result in reducing the impact of a dollar, global trade currency," commented Maksim Zagornov, Business Ambassador of Business Russia to the UAE.