As the BRICS alliance unfurls its welcoming banner to new members, the world watches with bated breath, particularly for Saudi Arabia’s pivotal decision on joining this economic powerhouse bloc. The 15th summit of BRICS, held in August of last year, marked a significant expansion with invitations extended to six nations, including the heavyweight oil titan, Saudi Arabia. Yet, amidst the flurry of acceptances, Saudi Arabia still hasn’t given a definite answer to the question on our minds; When is Saudi gonna finally join the BRICS?
The suspense is killing me!
A Calculated Pause in the Desert
Saudi Arabia’s hesitation to jump into the BRICS pool is a high-stakes game of chess on the global economic board. With the UAE, Iran, Egypt, and Ethiopia already diving in headfirst in January 2024, the desert kingdom is taking a moment to survey the landscape.
The kingdom finds itself dancing on a tightrope, seeking to court both the BRICS nations and its traditional Western partners. Saudi Arabia’s economic playbook has long relied on oil as its star player, but with an eye on diversifying its portfolio, the kingdom is also flirting with tourism as its next big bet. The UAE’s transformation into a global investment magnet post-tourism boom serves as a shining beacon for Saudi ambitions.
Yet, this balancing act comes with its set of challenges. The allure of BRICS, with its promising economic camaraderie among emerging markets, is tempting. However, Saudi Arabia recognizes the indispensable value of its longstanding relationships with Western powerhouses, crucial for keeping its economic engine purring. As it tiptoes towards potentially replicating the UAE’s success story, the kingdom’s strategic delay in embracing BRICS membership speaks volumes about its cautious diplomacy.
Between the Lines of Economic Strategy
Saudi Arabia’s economic maneuvers extend beyond mere alliance affiliations. The kingdom’s bolstering of its US Treasury holdings to a staggering $132 billion by the end of the previous year is a testament to its savvy investment strategy. Amidst global economic tremors, Saudi Arabia’s increased stake in the world’s safest asset underscores a broader narrative of seeking stability and attractive yields amidst uncertainty.
This chess move is paralleled by a broader BRICS narrative of wealth expansion, with the bloc set to witness an 85% surge in its millionaire population over the next decade. This forecasted wealth growth positions BRICS as a formidable challenger to the G7’s economic dominance, with Saudi Arabia potentially poised to play a critical role in this shifting global wealth paradigm.
Yet, the kingdom’s dalliance with BRICS membership is more than a mere economic decision; it’s a strategic positioning that balances its ambitious growth plans against the backdrop of global power dynamics. With an eye on diversifying its economy and expanding its wealth base, Saudi Arabia’s eventual nod to BRICS could significantly alter the economic and geopolitical landscape.
