During the UN Climate Summit, a newly invited BRICS nation, the United Arab Emirates (UAE) announced its intention to invest $5 billion into the economic alliance. Indeed, the funds will be a key part of a larger $30 billion investment that was announced during the summit, according to the Financial Times.
Reports state that the climate-based investment fund is set to be made alongside entities like BlackRock, TPG, and Brookfield. Moreover, it has been confirmed that Lunate Captial, a $50 billion asset manager based in Abu Dhabi, will oversee the $5 billion set to go to global south countries.
Also Read: BRICS: UAE Ditches U.S. Dollar for Oil Trade
UAE To Invest $5 Billion Into Global South Nations
For much of 2023, BRICS have dominated the headlines, and become a key part of geopolitical discourse. The economic alliance, founded in 2001, has perhaps never had as important of a year. Not only had the bloc adopted impactful de-dollarisation efforts, but it announced a vital six-country expansion. Subseuqnlety, one of those invited nations is already poised to inject funds into the alliance.
Specifically, newly invited BRICS member the UAE is set to invest $5 billion into the economic alliance. The country announced an overarching $30 billion investment into climate-related projects, at a UN Summit. Moreover, the previously stated $5 billion is to be set aside for global south nations.
Also Read: BRICS Finally Closed the Gap on the G7?
The global south has long been used to refer to the nations that comprise the BRICS alliance. Specifically, Brazil, India, and China have been staple countries of the term. Therefore, the investment announcement is set to also greatly impact the financial relations that the UAE has with nations located in that area.
There is also reason to believe that the investment should also aid the bloc’s de-dollarization efforts. the UAE was one of the first countries to abandon the Dollar in bilateral trade relations with BRICS countries. Moreover, it has already fully embraced similar practices. Altogether, the investment could be a massive positive for the bloc and its varying initiatives.