UAE joins BRICS: Implications and Opportunities
In a significant development, the United Arab Emirates (UAE) has officially become a member of the BRICS group, following a successful application ratified by the five founding nations - Brazil, Russia, India, China, and South Africa. The announcement was made during the 15th BRICS summit in Johannesburg earlier this month, where leaders from these nations convened.
The UAE's affiliation with the BRICS group is not a newfound connection; rather, it solidifies a long-term partnership. This partnership was notably highlighted during the 'Friends of BRICS' forum held in Cape Town, South Africa, in June 2023. This forum was a part of the BRICS Foreign Ministers Meeting, underscoring the UAE's active involvement in BRICS-related activities. Additionally, the UAE became a member of the BRICS New Development Bank in October 2021. This institution was established to facilitate resource mobilization for infrastructure and sustainable development projects within emerging markets, developing nations, and BRICS members.
The UAE's prominence as a global trade and economic hub, coupled with its foreign policy dedicated to fostering long-term economic prosperity, positions the nation as a key player in international relations. Driven by innovative strategies, the UAE is resolute in cultivating a knowledge-based and diverse economy, reinforced by scientific and technological advancements.
Omar Al Busaidy, Founder of Global Possibilities Consulting Works, asserted, "Being part of BRICS would give the UAE a greater voice on the global stage and could increase its influence in international organizations and negotiations. This could be particularly beneficial for the UAE as it seeks to play a more active role in global affairs."
The UAE's strategic commitment to enhancing its "soft power" translates into increased influence on global matters and active participation in fostering beneficial cooperation among nations.
As the UAE forges ahead as a BRICS member, several sectors are poised to reap the benefits of this association, as highlighted by Al Busaidy:
Energy: As a significant exporter of oil and gas, the UAE's integration into BRICS offers the potential for expanded energy exports to the member nations, who are among the world's largest energy consumers.
Renewable Energy: The UAE's substantial investments in renewable energy align with the renewable energy needs of BRICS countries. This synergy opens doors for UAE-based renewable energy companies to tap into opportunities within BRICS nations.
Infrastructure: The UAE's expertise in infrastructure development positions it as a valuable contributor to meeting the substantial infrastructure requirements of BRICS nations. Potential avenues for involvement include investment through entities such as the Abu Dhabi Development Fund and Emirates Development Bank to support the BRICS New Development Bank.
Tourism: Given the UAE's status as a global tourist hotspot and the burgeoning middle classes in BRICS countries, the UAE could witness increased tourism from BRICS nations. Initiatives like visa-on-arrival entry for BRICS citizens further facilitate this potential growth.
Financial Services: As a prominent financial centre, the UAE stands to address the substantial financial services' demands of BRICS countries, opening doors for its financial firms to engage in these dynamic markets. Notably, the recent agreement between UAE and India to trade oil using Rupee-Dirham is a testament to the evolving financial collaborations.
Real Estate: With a mature real estate market, the UAE could experience heightened investment from BRICS nations in its real estate sector following its BRICS membership.
Logistics: Leveraging its status as a global logistics hub, the UAE is poised to address the logistical needs of BRICS countries. This entails increased opportunities for UAE-based logistics companies, including entities like AD Ports and DP World, to participate in building and operating ports within BRICS member nations.
Al Busaidy aptly encapsulated the UAE's integration into BRICS by stating, "The UAE's inclusion into BRICS is not a mere numeric increase but a strategic enhancement of the group's capabilities and reach." The present interconnectedness of economies and intricate geopolitical landscapes underscores the importance of such alliances in shaping a collaborative, inclusive, and forward-looking global future.
BRICS leaders have indicated a willingness to accommodate future enlargement, given the growing interest of numerous countries in joining this platform. The collaborative vision driving BRICS aims to level the global playing field and foster shared prosperity.
