Saudi Arabia remains one of the few nations invited to join BRICS in 2023 that has yet to make a final decision. The Kingdom has spent over a year deliberating the move, carefully weighing the geopolitical and economic implications. During the World Economic Forum in Davos, Minister of Economy and Planning Faisal Al-Ibrahim emphasized that Saudi Arabia is prioritizing a strategic and measured approach rather than rushing into the alliance.
Al-Ibrahim highlighted that the decision extends beyond economic benefits, touching on broader strategic concerns. “The risks to economic cohesion, fiscal robustness, lingering inequalities, and energy access are not unconnected and affect us all,” he noted, reinforcing the need for bold and collaborative global solutions. Additionally, he reaffirmed the Kingdom’s commitment to fostering international dialogue and ensuring any decision aligns with its long-term vision.
Potential Impact of Saudi Arabia Joining BRICS
If Saudi Arabia accepts the invitation, BRICS would gain significant economic and energy leverage. The Kingdom’s vast financial resources could strengthen the New Development Bank (NDB), enhancing the bloc’s ability to fund infrastructure and economic projects. Furthermore, with Saudi Arabia controlling a substantial portion of the global oil market, BRICS nations could collectively dominate nearly 42% of the world’s natural oil supply, potentially reshaping global energy dynamics.
However, Saudi Arabia’s hesitation underscores its desire to maintain strong ties with Western nations. Joining BRICS could strain its historically close relationship with the U.S. and European allies, potentially impacting diplomatic and economic partnerships. The Kingdom’s strategic objective is to balance its relations between the West and emerging economies, ensuring that its Vision 2030 economic diversification plan remains on track.
Also Read: BRICS De-Dollarization: India & Indonesia Ditch the US Dollar for Local Currency Trade
China, Saudi Arabia’s largest trading partner, plays a crucial role in these deliberations. As Riyadh seeks to expand its global influence, maintaining economic and political flexibility remains key. Ultimately, whether Saudi Arabia joins BRICS or not, its decision will carry significant geopolitical consequences, affecting the Kingdom, the alliance, and global power dynamics.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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