BRICS is an acronym for five of the leading economies in the world: Brazil, Russia, India, China, and South Africa. Together, the nations are looking to establish their own currency, BRICS, in order to decrease the influence of the US in the global trade market by means of de-dollarization. New countries are already in line to join the organization, including the UAE
Could The UAE Join BRICS?
The United Arab Emirates joined the BRICS New Development Bank (NDB) in September 2021.
China and India are important to the UAE’s economy as destination markets for Emirati investment and vice-versa, hence the decision to join BRICS The UAE’s top export partner is India, with China being third. Its top import partners are also China and India.
The UAE also has deep connections with Russia. In early December 2021, Mubadala Investment Company (MDC) acquired a 1.9% stake in Sibur, the largest integrated petrochemical company in Russia. MDC has reportedly invested over $3 billion in Russia since 2010 across multiple sectors such as real estate, commodities, banking, logistics, and technology.
These deep connections with multiple founding BRICS countries are some of the leading examples behind the UAE joining the BRICS NDB in 2021. Additionally, the UAE leadership is looking to fund projects and create investments with these countries.
Although the country doesn’t share any immediate borders with any of the BRICS nations, the UAE already has memberships in the World Bank, the Asian Development Bank, and the European Bank of Reconstruction and Development (EBRD). The country also shares the desire to flush out the use of the Western USD, which is a motivator in the BRICS Alliance developing its own currency.
Hence, if and when a BRICS currency is developed, the United Arab Emirates will likely be one of the first supporters for it to replace the USD in the Eastern Hemisphere outside Brazil, Russia, India, China, and South Africa.