Dina Mahmoud (London)
On the path of diligent practical application of the “Fifty Principles”, which represent the reference for the United Arab Emirates and its institutions during the next fifty years, the official accession of the state, as of the first day of the new year, which fell yesterday, Monday, to the “BRICS” group, which includes a group of… The most promising and major economies in the world.
The UAE has gained membership in that bloc, which currently represents 42% of the world’s population and contributes to the global GDP by between 25% and 29%.
It also accounts for more than 16% of the volume of global trade, and constitutes an actual translation of what the second of the “Fifty Principles” calls for, which is to focus on “building the best and most active economy in the world, and working to build the best global economic environment.”
The accession step, which was officially ratified during the recent BRICS summit in Johannesburg, highlights the success of UAE diplomacy based on building, strengthening and diversifying partnerships with major powers, in a way that embodies international confidence in the UAE, highlights its growing status, and consolidates its economic and commercial position as a reliable partner that represents… A link linking the north of the world to the south and the east to the west.
Long term partner
The UAE's accession to the BRICS group culminates the growing relationship between the two sides over the years, in the context of the country's keenness to engage in development partnerships with countries that have distinguished economic expertise and experiences.
The UAE was among the first contributors, outside BRICS, to the New Development Bank of that bloc, which was launched in the middle of the last decade with a capital of $100 billion, with the aim of mobilizing resources to establish infrastructure and sustainable development projects in developing and emerging countries, and the countries of the group. itself as well.
A few months ago, the UAE participated in the “Friends of BRICS” forum, which was held in mid-2023 in Cape Town, as part of a meeting of foreign ministers of the group’s countries.
In addition, the country has various investments in the BRICS countries in several fields, including infrastructure, food security, clean energy, transportation and industry, in addition to concluding in February 2022 a comprehensive economic partnership agreement with India, a prominent member of the alliance, along with Along with consolidating economic cooperation with other members.
In light of these close ties, the UAE was described, before joining BRICS, as a “long-term partner” of that promising grouping, which has become one of the largest economic blocs in the world, if not the largest, as it surpassed the Group of Seven major industrial countries, in terms of the size of the economies. Under its umbrella, and in terms of population as well, it includes 3.2 billion people, compared to 800 million for the “Seven”.
The superiority of BRICS also extends, according to some estimates, to its control of 32% of the global economy, compared to 30.7% dominated by the Group of Seven, as a result of its increasingly growing role over the past few years, to the extent that the economic bloc of its countries contributes to generating 30% of total global growth during the last two decades.
This great success of BRICS, despite its relative newness compared to other blocs such as the European Union and the Association of Southeast Asian Nations (ASEAN), prompted more than 20 countries to submit applications to join it, to benefit from its global economic weight and the extension of its countries’ territories, over the years. Approximately 40% of the Earth's area.
But the founders of the five-member group were very keen for its second expansion to include the UAE, the Kingdom of Saudi Arabia, and other countries, after that alliance had expanded for the first time in 2010, with South Africa including it, alongside the founding countries, Russia, China, India, and Brazil.
Emirati gains
Analysts and experts agree that huge benefits will accrue to the UAE from its joining this transcontinental group, the idea of establishing which began in 2006, and whose mechanisms have been strengthened in recent years, by launching a business council affiliated with it to manage investments, its own credit rating agency, and a reserve fund for times of emergency.
These gains are not limited to the economic aspect, but are also of a political nature, which would open promising horizons for further cooperation, whether between the UAE and the rest of the members of the group, or between the BRICS countries and various other countries of the world.
For the UAE, which has transformed its economy since the beginning of the current century into a knowledge-based economy by encouraging innovation, obtaining BRICS membership helps attract more foreign investments to its lands, given that the group’s countries constitute an important source of direct foreign investment, especially since among its members are China has one of the largest economies in the world, along with India, which occupies third place on the same list, as well as Russia.
Among the areas in which the BRICS countries represent a vital source of foreign direct investment are mining, transportation, financial services, information technology, clean energy, and the automobile industry, which creates more job opportunities and enhances mutual trade and investments between member states.
Also, this group, whose members seek to establish a balanced global economic system, is rich in very important resources, such as oil and wheat, in addition to minerals described as widely used, such as “iron,” as well as rare metals, which are used in technological industries, which enhances the available options. In front of Emirati companies, and increases the strength of the Emirati economy, the most competitive in the Middle East and the twelfth internationally.
In addition, joining the bloc opens the door for Emirati companies and capital to enter new global markets, supporting the economic flexibility policies adopted by the country, making it the first in the Arab world in terms of attracting investments.
The potential gains resulting from joining BRICS enhance the UAE’s role as a regional and global economic and financial power. It also enables it to extend bridges of cooperation with more countries in the world, especially since it is among the fastest growing countries, in addition to supporting the UAE’s efforts to increase the volume of trade exchange with regard to non-oil goods, which has brought it to record levels in the past few years.
Countless benefits of “BRICS”
On the other hand, the great welcome by the BRICS countries to the UAE’s accession to the group reflects the awareness of its founders of the country’s position as one of the leading economic powers in the region and the world, and a practical acknowledgment of the success of its steps aimed at enhancing the capabilities and sustainability of its economy, through international partnerships aimed at supporting economic prosperity. In the long term, establishing balanced relations with various global actors.
Last June, Russian Foreign Minister Sergei Lavrov stressed that the accession of the UAE and other Arab countries to that economic bloc enriches it, enhances its strength, and contributes to rebalancing the global economy.
No one disagrees that the UAE, which is one of the largest Gulf markets and has diversified investments around the world, will constitute an unparalleled added value to the group, making it more capable of achieving its goals, and consolidating its influence on the international arena, in addition to expanding the scope of its influence, in line with the changes. The current global political and economic scene and its transformations.
UAE
accession also increases the attractive elements of BRICS, specifically in terms of financing, and also allows the rest of the group’s members to benefit from the diverse economic resources that the country is blessed with, and the pioneering approach it adopts in the fields of sustainable development and smart investments, as well as the funds it possesses. A major reserve, in addition to being a major center for global trade.
Moreover, observers confirm that expanding the circle of BRICS membership will launch a new phase in its history, providing the necessary conditions for establishing more development projects among its countries, and enabling its companies to access new markets, in addition to strengthening the security capabilities of the countries of that alliance, in Confront any threats.
Given that the share of the five founding countries of BRICS in global oil production is close to 43%, the joining of the UAE and Saudi Arabia in particular would strengthen the position of that group as a major player in international energy markets.
At the same time, expanding the membership of that economic bloc will enable it to diversify its monetary reserves and strengthen the national currencies of its countries, in addition to increasing the gold reserves in its territories by 13%, and increasing its population by more than 15.5%. BRICS' gains from the UAE's membership are not limited to the economic aspect alone.
This step will enhance the group's capabilities in the fields of scientific research, technology and innovation, thanks to the country's solid scientific and technical base, especially in the fields of space, artificial intelligence and information technology.
Enormous resources
In terms of numbers as well, the BRICS economies will be supplemented by about $3.24 trillion, due to the new countries’ enormous resources in various fields, which will enhance the ability of that economic bloc to stand on an equal footing with other global alliances, in addition to strengthening strategic, economic and logistical opportunities. For his countries.
These mutual gains demonstrate the depth of the UAE’s visionary vision, which is based on the fact that only partnerships are capable of overcoming the interrelated challenges that humanity faces in the current era, most notably climate change and food and energy security, in a way that achieves the common interests of various countries of the world, within the framework of Cooperation between regional and international blocs and groupings, not stoking competition and rivalry among them.
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