SAUDI ARABIA: One of the world’s richest and most powerful dynasties has just become the new kid on the BRICS block.
South Africa’s President Cyril Ramaphosa and BRICS chair formally announced that six countries have been accepted into the BRICS block.
Ramaphosa said Brics would approach expansion in two phases. The first begins with adding Argentina, Egypt, Iran, Saudi Arabia, and the UAE.
He said more countries’ applications are being considered.
On Wednesday night, Saudi’s foreign minister Prince Faisal bin Farhan, touched down in South Africa.
He is leading a delegation on behalf of Crown Prince Mohammed bin Salman.
Saudi’s acceptance into BRICS is a historic moment for the block. More than 20 nations had formally applied to join BRICS.
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Oil-backed heavyweight
As a fellow emerging nation, Saudi brings oil-backed economic power to the consortium. The world’s largest crude oil exporter is also expected to bolster the New Development or BRICS Bank. Led by 38-year-old Crown Prince Mohammed bin Salman, this marks a big win for emerging economies.
Bringing in more money for international development and improving economic trade in historically maligned countries.
“The total bilateral trade between BRICS countries rose from 81 billion dollars to 128 billion in early 2023,” said political analyst Dr Mohamed Elharbi.
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The New Development Bank provides developing economies with a loan alternative to the International Monetary Fund and the World Bank. Over the last eight years, it’s spent billions on infrastructure and development for BRICS countries.
And Saudi Arabia’s trillion dollars is sure to come in handy.
Opening up trade routes between BRICS countries will allow for easier, faster and cheaper manufacturing, lessening reliance on Western countries.BRICS nations are also forming closer social ties by mediating some of the world conflicts.
Earlier this month, Jeddah hosted peace talks about Russia’s conflict with Ukraine.
In June, leaders from South Africa, Zambia, the Comoros, Congo Brazzaville, Egypt, Senegal and Uganda, travelled to Ukraine for an African peacekeeping mission between warring Presidents Vladimir Putin and Volodymyr Zelenskyy.
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