Economic analysts have emphasized that Saudi Arabia’s expected move to join the BRICS group as an observer will grant the Kingdom the ability to participate in some of its economic activities.
The group is expected to meet in August.
This move is also expected to strengthen Saudi Arabia’s trade and economic relationships while reaffirming its commitment to global economic openness and the prudent management of economic ties.
Dr. Mohammed Makni, a finance and investment professor at Imam Mohammad Ibn Saud Islamic University in Saudi Arabia, told Asharq Al-Awsat that since its inception, the BRICS group has sought to shift economic power from a single to multiple directions.
The bloc is significant for comprising around 41% of the world's population and 29% of the world’s land area. Additionally, its members are part of the G20, representing the world’s largest 20 growing economies.
Makni further added that Saudi Arabia’s inclusion will open new paths and significant opportunities for the Kingdom’s economy and the Gulf markets, leading to expansion and increased global economic stability.
Saudi Arabia will also play a crucial role among the group’s nations, particularly in the trade of oil and gas, which constitutes 30% of the Kingdom's exports to global markets.
Makni also added that Saudi Arabia is open to all, and its policies are not limited to a Western-oriented approach.
He pointed out that the country had joined the Shanghai Cooperation Organization for Economic and Security Cooperation in March 2022.
This move, Makni emphasized, will not affect the strong relations between Riyadh and Washington, as well as other Western countries.
It serves to affirm the strength and resilience of the Saudi economy and the Kingdom’s capability and wisdom in managing its relationships with various nations while maintaining a balance of interests to achieve the strategic goals of Vision 2030.
Moreover, Makni emphasized that this membership will infuse a new vitality into the economies of the member states amid the ongoing global economic crises and reshaping of economic powers.
It will also create opportunities for the BRICS nations to enter the markets of the Gulf region, especially given the urgent need for the two largest economies in the group, China and India, to access Gulf energy markets in order to sustain growth and move towards global economic leadership.
The BRICS group is a global economic bloc comprising the countries of Brazil, Russia, India, China, and South Africa. BRICS is an acronym derived from the initial letters of these nations’ names.
Currently, South Africa is chairing the group, and it will host the 15th summit of the bloc from August 22 to 24.
