A key aspect of last month’s BRICS expansion, the United Arab Emirates (UAE) is clearly navigating its new alliance and its US relations. Indeed, the invitation from the economic bloc presented the country with a host of economic opportunities. Yet, they are still maneuvering around the geopolitical ramifications abounding in their movement forward.
The UAE joined Saudi Arabia, Egypt, Ethiopia, Iran, and Argentina as fellow BRICS invitees. Moreover, its allegiance to this new collective has the potential to interfere with its ongoing investment partnership with the United States. However, the country has clearly opted to embrace the potential that comes from a growing BRICS group.
UAE Navigating Geopolitical Impact of BRICS Alliance Amid US Relations
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The BRICS economic alliance has certainly garnered the attention of the world in the last several months. Its highly anticipated annual summit culminated in the addition of six new countries. Moreover, it has firmly implemented de-dollarization in an effort to diminish global reliance on the West.
Now, the bloc is exploring its first expansionary effort in more than a decade, and it has grown to represent over 40% of the global population. Subsequently, the potential that BRICS maintains has shown the UAE navigating its new alliance amid its US relations.
The decision was certainly a difficult one for the country, as geopolitical consequences could be present. Yet, the opportunity may be too enticing to pass up. Through its membership, the country now has greater economic ties with both China and India, two of the region’s strongest trading partners.
Economic Opportunity Over Western Allegiance
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Bloomberg reports that the UAE is seeking to double its GDP by the end of the year, reaching $800 billion. Moreover, to reach that goal, economic opportunities must be placed at the forefront, and no situation is more achievable than through BRICS membership.
However, its relationship with the US should be noted. Specifically, this year saw the UAE and India opt to settle oil transactions in Indian rupees as opposed to US dollars. The decision aids the bloc’s de-dollarization hopes but hurts the Western juggernaut. Moreover, the bloc includes two countries affected by Western sanctions: Russia and Iran.
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The UAE is expected to infuse capital into the bloc’s New Development Bank (NDB). Indeed, BRICS countries contribute 31.2% to global GDP, but that is not an even split. The UAE and Saudi Arabia will be able to make up for the economic shortcomings of Brazil and Russia. Joining India and China.
The country has often ensured a multi-alignment strategy and recognizes the importance of consistent cooperative relations. Currently, the US has stated that it does not see BRICS as a geopolitical rival. However, the UAE has put its hopes on the contrary, because to rival the West is to grow abundantly.