Saudi Arabia in negotiations to join the BRICS New Development Bank, strengthening ties with emerging economies

In a noticeable shift, the BRICS group, which includes Russia, China, Brazil, India, and South Africa, is transforming into a global attraction, posing a challenge to Western power dominated by the United States and its allies.

A series of developments has forced itself onto the global stage, most notably, negotiations for the potential inclusion of Saudi Arabia, the world's largest oil producer, as a new member in the New Development Bank (NDB) — commonly known as the BRICS Bank.

The BRICS nations founded the NDB in 2015 to finance development projects in emerging economies, essentially functioning similarly to the International Monetary Fund and the World Bank, where Washington holds the largest financial and executive stakes. The NDB is headquartered in Shanghai.

Recently, the NDB expanded its membership to include the United Arab Emirates, Egypt, and Bangladesh. So, what impact could Saudi Arabia's inclusion have?

The Kingdom could help the Bank secure funds amidst financial difficulties it faces due to sanctions imposed on Russia. Consequently, this move aims to enhance the NDB's capacity to withstand the influence of international banks and institutions dominated by Washington and its allies.

The New Development Bank told the Financial Times, "In the Middle East, we attach great importance to Saudi Arabia and are currently engaged in a qualifying dialogue with them."

For Saudi Arabia, this step bolsters its ties with the BRICS countries, especially China. The Kingdom may benefit from China's markets, industrial advances, and innovation, thereby boosting growth opportunities within its Vision 2030. Notably, Riyadh joined the Shanghai Cooperation Organisation a few months ago.

BRICS nations are expected to outperform G7 countries, including the US, Japan, and several European nations, in economic growth. China is projected to be the most significant contributor to global growth in the next five years, according to Bloomberg's interpretation of International Monetary Fund data.

Several countries, including Algeria, Argentina, Iran, Tunisia, Indonesia, and Turkey, are seeking to join this growing bloc, as per the Chinese Ministry of Foreign Affairs.