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BRICS+: Experts explain what the strategic entry of six new nations means for bloc


BRICS – the bloc of emerging economies comprising Brazil, Russia, India, China and South Africa – announced the admission of six new members to the group at the conclusion of the bloc’s 15th annual summit in Johannesburg last Thursday.

More than two dozen countries had applied, both formally and informally, to join the bloc, but the group’s leaders extended membership only to Saudi Arabia, UAE, Iran, Egypt, Ethiopia and Argentina for now.

If they accept the invitation, these six new countries will become active BRICS+ members from January 2024.

According to experts, the expansion of BRICS is a calculated move by the bloc’s leaders, and there is a strong strategic reasoning behind inviting each of the six countries to the group, which will now be known as BRICS+.

President of Brazil Luiz Inacio Lula da Silva, President of China Xi Jinping, South African President Cyril Ramaphosa, Prime Minister of India Narendra Modi and Russia's Foreign Minister Sergei Lavrov (R) attend the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (AFP)

President of Brazil Luiz Inacio Lula da Silva, President of China Xi Jinping, South African President Cyril Ramaphosa, Prime Minister of India Narendra Modi and Russia's Foreign Minister Sergei Lavrov (R) attend the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (AFP)

“The BRICS seemed to have moved in a way that is poised to maximize their economic heft,” former White House economist Jo Sullivan told Al Arabiya English.

“Most of these countries are either key commodity producers, like Saudi Arabia and the UAE, or in the case of Ethiopia and Egypt, they are on the Red Sea that connects to the Suez Canal, which is a huge point of transit for a large range of commodities,” he added.

Why these six countries?

One of the prominent goals of BRICS is to enhance cross-border trade among member nations to boost the group economically and reduce the bloc’s reliance on the US dollar.

According to experts, BRICS invited Saudi Arabia and the UAE in view of their enormous wealth and abundant fossil fuels. Saudi Arabia is also one of the leading holders of US treasury debt – the national debt of the United States issued in bonds.

On the other hand, Egypt and Ethiopia share an advantageous location on the Red Sea near the Suez, a major route for global trade. The two nations are also regional powers in Africa.

Iran – one of the most “interesting” choices according to many scholars – can assist BRICS with its vast knowledge and experience in conducting international trade while sidestepping Western sanctions.

“There are practically no economies that have been sanctioned as heavily as the Iranian economy by the US,” Sullivan said.

According to Sullivan, the inclusion of Iran will be a pointer towards the bloc’s seriousness in either dodging the impact of any future US sanctions or its ability to mitigate that blow, if and when it implements de-dollarization – a move away from the US dollar.

Iranian President Ebrahim Raisi (C) attends a meeting during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (AFP)

Iranian President Ebrahim Raisi (C) attends a meeting during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 24, 2023. (AFP)

Iran’s President Ebrahim Raisi also expressed his support for BRICS’s efforts to de-dollarize at last week’s summit.

“The Islamic Republic of Iran very resolutely supports the successful endeavors of BRICS, in line with de-dollarization from the trade and economic interactions between the members and also making use of local currencies,” he said.

Russia is already dealing with sanctions due to the ongoing Ukraine war, while India and China have had their own flirtations with US-imposed restrictions in the past. From that perspective, Iran may be the “harbinger” to overcome the threat of Western sanctions, according to Sullivan.

The inclusion of Argentina, which is not a massive economy in South America, may also have a lot to do with the country’s openly-expressed desire to move its economy away from the US dollar by trading in local currency, a key issue among BRICS nations.

“Part of this (Argentina’s inclusion) has to do with Argentina’s keenness on de-dollarization,” Sullivan said. “The Argentinian economy may be one where they are willing to try de-dollarization and willing to experiment in terms of their currency system and achieving bilateral trade in ways that are likely to appear as appealing to BRICS.”

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BRICS convened as populous regional powers, but the bloc is now looking to gather trade partners across the globe to further its economic might and achieve financial initiatives, along with holding some sway in the energy markets, according to BRICS expert, Mihaela Papa.

Russian President Vladimir Putin shake hands with Chinese President Xi Jinping during their meeting on the sidelines of the BRICS Summit in Xiamen, on Sept. 3, 2017.( File photo: AFP)

Russian President Vladimir Putin shake hands with Chinese President Xi Jinping during their meeting on the sidelines of the BRICS Summit in Xiamen, on Sept. 3, 2017.( File photo: AFP)

“The inclusion of these six nations is aimed at increasing trade opportunities and all of these states are interested in BRICS’ financial initiatives such as engaging with its financial institutions and transitioning to trade in local currencies,” Papa, a Senior Fellow at the Fletcher School, told Al Arabiya English

The road ahead

Following the expansion, BRICS now accounts for 36 percent of the global gross domestic product (GDP) and 47 percent of the world population, with 3.7 billion people residing in BRICS+.

According to experts, with 11 countries in the bloc, the group holds significant sway in bargaining with organizations such as the G7 and the global West in general.

Some scholars believe the inclusion of countries like Iran may push an anti-West agenda in the bloc, as countries like India and Brazil, who share cordial ties with the US, lean more heavily into the group that already has Russia and China and now Iran, who openly criticize the West’s dominance in the world order.

“BRICS has explicitly rejected anti-American positioning and emphasized new development ideas. However, accepting Iran is likely to enhance the group’s anti-American narratives and agendas, which have been gaining traction since Russia’s invasion of Ukraine,” Papa added.

A teller flicks through a bundle of US dollar bills at an exchange office in Ankara on July 20, 2023. (File photo: AFP)

A teller flicks through a bundle of US dollar bills at an exchange office in Ankara on July 20, 2023. (File photo: AFP)

While no statements were made by BRICS leaders on a common currency – except by Brazilian President Luiz Inacio Lula da Silva, who said the group has established a “working group to study a reference currency” – the bloc’s expansion is a strong sign that BRICS may move towards conducting more trade in local currencies, according to Sullivan.

“Lula talking about it (reference currency) at the beginning and end of the summit means there was real progress in sort of keying up the development of the BRICS currency, though there has been no big announcement yet on that,” he said.

The individual might of these countries is expected to make a significant impact in bolstering the economic development of the bloc, by forging strong bilateral ties and creating a more balanced economic world order.

Read more:

BRICS summit, economic shift: Exploring a new currency and possible de-dollarization

Iran supports BRICS efforts to de-dollarize: Raisi

BRICS launches ‘working group’ to study reference currency for trade: Brazil's Lula

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Crown Prince of Abu Dhabi meets with CEOs of leading Norwegian companies

H.H. Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has met with a group of CEOs from leading Norwegian companies, as part of their participation in the UAE-Norway Investment Forum, held alongside his official visit to the Kingdom of Norway.

During the meeting, H.H. Sheikh Khaled bin Mohamed bin Zayed underscored the UAE leadership’s commitment to strengthening economic cooperation with its international partners.

He highlighted that investment in innovation and knowledge is a cornerstone for achieving sustainable development, noting that enhancing collaboration with Norwegian companies across key sectors will open new avenues for mutual economic growth between the two countries.

The UAE-Norway Investment Forum, taking place in Oslo, aimed to highlight available investment opportunities and strengthen trade relations between the UAE and Norway, fostering shared interests and supporting innovation and knowledge-based economic visions.

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At the Indonesia International Book Fair 2024, TRENDS inaugurates 10th global office, releases four books

As part of its Asian research tour, partnership with Aletihad News Center, and
primary sponsorship of the Indonesia International Book Fair 2024, TRENDS
Research & Advisory inaugurated its office in Jakarta, marking its 10th location
worldwide. It also released four books in Indonesian.
The inauguration event was attended by ambassadors of the UAE, Bahrain, and
Jordan to Indonesia, chairpersons of the UAE and Indonesian Publishers’
Associations, the Director of TRENDS’ Jakarta office, and a group of researchers
and academics.
Speaking at the event, Dr. Mohammed Abdullah Al-Ali, CEO of TRENDS
Research & Advisory, stated that TRENDS’ international offices—set to reach 15
by the end of 2024—aim to enhance the Center’s research efforts and deepen its
role in disseminating knowledge, thus serving as a global knowledge bridge.
He emphasized, “At TRENDS, we believe in the importance of cooperation
between think tanks and prioritize this endeavor. We believe the TRENDS office in
Jakarta will enhance the exchange of knowledge and ideas between think tanks in
Asia and the Middle East, opening new horizons for collaboration in various
fields.”

Four books in Indonesian
As part of the Jakarta office’s inaugural activities, four books were released in
Indonesian, including the 11th and 12th books of the Muslim Brotherhood
Encyclopedia and Global Trends in AI and Automation and the Future of
Competition between Man and Machine: An Analytical Forward-looking Vision.

Hostility to Arab states
The 11th book of the Muslim Brotherhood Encyclopedia, The Concept of the State
According to the Muslim Brotherhood, highlights its hostile stance toward Arab
states since its inception. The group views them as an obstacle to its ascent to
power. It opposed the modern principles upon which these states were built,
considering them incompatible with the group’s unique interpretation of Islam,
which it claimed to embody exclusively.

Exclusion of nonconformists
The 12th book, The Muslim Brotherhood: Rejection of Tolerance and Exclusion of
Nonconformists, examines the Muslim Brotherhood’s stance towards
nonconformists, individuals, and entities. The book reveals the group’s binary view
of the world, categorizing others as allies or adversaries. It ties these relationships
to the Brotherhood’s internal power struggles and self-serving interests.

Global Trends in AI
The third book, Global Trends in AI, explores significant developments in AI and
its impact on various aspects of life, including the economy, society, and
governance. It also offers a comprehensive analysis of technological advancements
in AI, its applications across sectors, the ethical and social challenges it presents,
and its future trajectory.

Automation

The fourth book, Automation and the Future of Competition between Man and
Machine: An Analytical Forward-looking Vision, addresses the growing challenges
faced by the human workforce in the face of widespread automation and AI
applications. The book concludes that while automation presents a significant
challenge to the labor market, it simultaneously creates new opportunities. It
emphasizes the importance of preparing for this shift through skills development,
continuous education, and adopting economic and social policies that support the
workforce.

Prominent pavilion and active presence
The TRENDS’ pavilion at the Indonesia International Book Fair has attracted
numerous visitors, including academic researchers and officials, such as the
ambassadors of the UAE, Bahrain, Qatar, Jordan, and Turkey. Additionally,
chairpersons of Arab and Indonesian publishers’ associations, authors, publishers,
and students visited the pavilion. All were impressed with and praised TRENDS’ diverse, valuable publications. They also commended TRENDS’ active
international presence and ability to address global developments with rigorous
analytical research.
Dr. Mohammed Abdullah Al-Ali honored the esteemed guests, including
ambassadors of the UAE and Bahrain to Indonesia, Wedha Startesti Yudha,
Chairperson of the Indonesia International Book Fair Committee, Arys Hilman
Nugraha, Chairman of the Indonesian Publishers Association, and others,
presenting them with TRENDS’ publications and commemorative shields.
Additionally, he awarded TRENDS’ Research Medal to Ni Made Ayu Martini
Indonesian Deputy Minister of Marketing, Tourism and Creative Economy
It is worth noting that during its current Asian research tour, TRENDS announced
the launch of the TRENDS Research Medal, awarded to individuals who make
significant contributions to the development of scientific research and promote collaboration with TRENDS in strengthening a culture of research across various fields.

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US determined to prevent full-scale war in Middle East, Joe Biden tells UNGA79

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He also touched on “the rise of violence against innocent Palestinians on the West Bank”, and the need to “set the conditions for a better future”, which he said featured “a two-state solution, where the world — where Israel enjoys security and peace and full recognition and normalised relations with all its neighbours, where Palestinians live in security, dignity, and self-determination in a state of their own”.

President Biden underscored the ceasefire and hostage deal put forth by Qatar and Egypt, which the UN Security Council endorsed. He said, “Now is the time for the parties to finalise its terms, bring the hostages home,” adding that this would help ease the suffering in Gaza, and end the war.

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