The five-nations BRICS summit of emerging economies, held in Johannesburg recently, has announced its intentions to expand its membership with invitations to Argentina, Egypt, Ethiopia, Iran, the UAE and Saudi Arabia. This would increase trade, industry and infrastructure in these economies and could hold major significance and consequences for First World economies.
Leaders from Brazil, Russia, India, China and South Africa agreed to enlarge their BRICS group in January 2024. South African President Cyril Ramaphosa, said it will be the first expansion since 2010.
These five countries, which form 25% of the global economy, seek to counteract Western-led forums’ dominance. BRICS wants to bring diversity to the world’s power structure.
The recent Ukrainian war and the USA’s power Struggle with China have left smaller countries caught in the crossfire and seeking new alliances to get the best deals.
The inclusion of Saudi Arabia, Iran and UAE to China and Russia’s oil-producing capabilities, could potentially affect the international oil industry permanently and put pressure on the USA, the current largest oil producer globally.
This invitation is indeed a confidence boost for emerging markets and the future of the global economy, which could offer potential investment opportunities.