Saudi, UAE, Egypt to Join BRICS in 2024

The number of members of the BRICS group, which includes countries from emerging markets, is expected to double, with the Kingdom of Saudi Arabia, the UAE, Ethiopia, Iran, and Egypt joining the bloc on 1 January, 2024.^[1]  

The BRICS group consists of Brazil, Russia, India, China, and South Africa. The five countries collaborate on economic, political, and strategic issues to promote mutual growth and development.

With the addition of the UAE, Saudi Arabia, Ethiopia, Iran, and Egypt, the group will have a combined population of 3.5 billion people, amounting to 45% of the world's population, with a combined economy of over $28.5 trillion. Together, the countries will produce around 44% of the world's crude oil. 

The BRICS group was formally established in 2006, and since then, the five countries have engaged in regular summits and consultations to strengthen economic ties and coordinate on various global issues. The group, which was originally established as BRICs, held its first leaders' summit in 2009. It invited South Africa to join a year later, making it BRICS.^[2]  

The term BRICS was first coined by economist Jim O'Neill in 2001, predicting that by 2050, these economies would dominate world growth. It was intended as an optimistic scenario for investors amid market pessimism following the terrorist attacks in the United States on 11 September 2001.

How joining BRICS can potentially benefit a country's economy?

1. Enhanced Trade Opportunities:

Joining BRICS opens up new avenues for trade among member countries. The economic strength of BRICS nations provides a significant market for goods and services, allowing new members to expand their exports and strengthen their economies.

2. Investment and Infrastructure Development:

BRICS nations often collaborate on large-scale infrastructure projects. New member countries can benefit from shared knowledge, technology, and financial resources for developing critical infrastructure like transportation, energy, and telecommunications. This can lead to improved connectivity and efficiency within the region.

3. Diversification of Economic Partnerships:

Membership in BRICS allows countries to diversify their economic partnerships beyond their traditional allies. This can reduce dependence on a single market and enhance resilience against global economic uncertainties.

4. Political and Diplomatic Cooperation:

Joining BRICS provides countries with a platform for diplomatic and political cooperation. This can be beneficial in addressing global challenges and advocating for shared interests on the international stage.

5. Access to Development Banks:

BRICS has established institutions such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). New member countries can leverage these institutions to access funds for development projects and to build financial resilience.

6. Technology and Innovation Exchange:

Collaboration within BRICS facilitates the exchange of technology, knowledge, and innovation. New members can benefit from advancements made by other countries, fostering growth and competitiveness in various sectors.