What does Saudi Arabia’s accession to the “BRICS” group mean?

The Saudi expert in international trade, Dr. Fawaz Al-Alami, said that Saudi Arabia’s accession to the BRICS group will be in its capacity as an observer or partner for dialogue, because BRICS is not a formal organization in large part, but only a group.

Al-Alami said in an interview with Al-Arabiya channel that the current members will benefit from Saudi Arabia joining the BRICS group and other countries.

Contrary to the misconception, “BRICS” is not an economic organization, but rather a purely political group that brings together an association of countries that are not satisfied with the unipolar system, and the Kingdom of Saudi Arabia does not enter into these areas, and it stands at the same distance from everyone, and it does not aim to be A major partner in a group that does not have an economic system, traditions and commercial exchange,” according to Alami.

On the issue of expanding the group, Al-Alami said that the current member states are the beneficiaries, and Saudi Arabia has a large share in global markets and investments, and direct purchase from member states is large, as it is the largest partner China, India and Japan, and they are among the best trading partners for the Kingdom, and they will benefit from this accession because it will open the market Saudi Arabia in front of these countries, and also will open these markets to Saudi exports.

With regard to competition with the dollar, Al-Alami said, “Saudi Arabia relies on the US dollar, and BRICS cannot compete with the dollar, through which 80% of trade exchanges take place, and 59% of foreign reserves dominate, and it also controls 90% of the system of financial transfers that take place within a network.” Swift, while the Chinese yuan’s share of foreign reserves is estimated at 2.7%.

Al-Alami reaffirmed that BRICS is not an organization, and that it deals in terms of politics, and tries to accelerate economic diversification and development, and established the New Development Bank, but the funds were not put into it.

Alami warned that geopolitical competition will further divide the global economy, and this may reflect negatively on the economy of BRICS members.

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