Including UAE and Saudi Arabia in BRICS will permanently change the

Dubai: The position taken by the US on the dollar is forcing the allies and partners of the US to look at alternate systems. At the same time, the effects of the Russia-Ukraine conflict create an environment to accelerate efforts to create a parallel and alternate financial system to the existing global financial system. In this scenario, it will be a game-changing decision for countries in the Middle East, like the United Arab Emirates (UAE) and Saudi Arabia, to join the BRICS, an organisation of Russia, Brazil, India, China, and South Africa. Analysts in the middle east claimed this would permanently change the global power balance.

Moreover, international investors and analysts consistently indicate major upheavals in the global economic system. International financial institutions are warning that a recession bigger than 2007 is looming over the global economy. In the meantime, the policy adopted by the Biden administration regarding the US Dollar is adding to the concerns of the US allies and partners. On realising the ongoing situation, the BRICS member countries have reduced transactions in US Dollars and taken rapid steps to incorporate alternative currencies.

This stand of the BRICS members is getting increasing support from the US allies and partner countries. Saudi Arabia, UAE and Turkey have already presented proposals for BRICS membership. The decision regarding this will be taken in the next year. Analysts in the middle east claimed that in this scenario, the importance of BRICS will further increase at the international level, given the contribution of the BRICS and middle eastern countries in the global economy.

BRICS countries contribute 23% to the global economy. Whereas the BRICS members have an 18% share in global trade. 31% of the global oil reserves are with Saudi and UAE. UAE is a major global centre for trade and financial transactions. These analysts claim that including Saudi and UAE in the organisation will strengthen BRICS further and change the global power balance.

मराठी हिंदी