Brazil and Argentina Commemorate BRICS Welcomed Arab Additions

26 Aug, 2023

News of the BRICS group's expansion to include six new members, including three Arab nations and Argentina, has been met with enthusiasm by the people of Brazil and Argentina. Particularly, those engaged in institutions fostering trade with Arab nations are pleased with this development.

Both Brazil and Argentina maintain strong economic connections with Arab countries, having collaborated on various joint projects in recent years. The inclusion of the Arab nations in BRICS is expected to strengthen these relationships further.

During the 15th summit of BRICS held in Johannesburg, South African President Cyril Ramaphosa declared the invitation to join BRICS had been extended to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. Full membership for these nations is slated to commence in 2024.

This expansion marks the first in 13 years for the group, which was initially formed in 2009 by Brazil, Russia, India, and China. South Africa joined the alliance a year later. Over the past decade, the group has launched initiatives such as the New Development Bank and the BRICS Contingent Reserve Agreement, bolstering its geopolitical influence.

The inclusion of Saudi Arabia and the UAE within BRICS underscores their commitment to enhancing global relations. This move is anticipated to bring the Mercosur trade bloc closer to Gulf nations, strengthening economic ties.

The trade volume between Brazil and Saudi Arabia has been historically substantial, encompassing imports and exports of oil-related products, halal poultry, beef, and other commodities. Likewise, Brazilian exports to the UAE have been on the rise, reaching a record high in 2022.

While Egypt grapples with economic challenges, its inclusion in BRICS holds symbolic value due to its historical role in the Non-Aligned Movement. Brazil's exports to Egypt amounted to $2.8 billion in 2022, marking the significance of this market.

Ali Saifi, CEO of Cdial Halal, emphasized the importance of BRICS' invitation to Arab nations. He noted that Brazil's prominent halal exports and its strong relations with the Arab League position it well within this bloc, particularly with visionary leaders in Saudi Arabia and the UAE engaging in South American projects.

For Argentina, grappling with economic struggles, BRICS membership is not just geopolitically significant but also economically relevant. It allows Argentina to connect with new countries and solidify its identity within the Global South. The inclusion of Saudi Arabia, the UAE, and Egypt presents new commercial opportunities and trade possibilities, which Alfredo Abboud of the Argentinian Chamber of Commerce and Services for the UAE finds promising.

In conclusion, BRICS' expansion has created a new landscape for economic growth and trade, connecting nations with vast territories, substantial populations, and significant gross domestic products. This move holds promise for fostering stronger global relationships and trade avenues among member countries.

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