Analysts say that adding Saudi Arabia and the UAE to the Brics bloc will raise the group’s global impact and open up new investment opportunities for the two biggest economies in the Arab world.

Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia all joined Brics on January 1, making it a group of ten countries instead of five. Brazil, Russia, India, China, and South Africa were the original members.

As the world economy continues to face geopolitical and economic problems, Ullas Rao, an assistant professor of finance at the Edinburgh Business School of Heriot-Watt University in Dubai, said, “The addition of Saudi Arabia and the UAE to the Brics multilateral bloc is a very good sign.”

“Being among the richest countries per person and having the largest sovereign wealth funds, both Saudi Arabia and the United Arab Emirates create huge growth opportunities through trade, commerce, and investments.”

India and UAE

While other countries are dealing with high interest rates, inflation, and political unrest, Saudi Arabia and the UAE have continued to grow their economies. This is because they are working to make their economies more diverse.

Its economy grew by 8.7% in 2022, which was the fastest rate of growth among the 20 biggest economies in the world. The International Monetary Fund predicts that it will grow by 0.8% in 2023.

As part of Vision 2030, the country is also putting a lot of effort into growing its non-oil economy.

A new report from the World Bank says that the UAE’s economy will grow 3.4% in 2023, with oil GDP growth of 0.7% and non-oil GDP growth of 4.5%. This is due to strong performance in tourism, real estate, construction, transportation, manufacturing, and a rise in capital expenditure.