BRICS still expect Riyadh: Why Saudi Arabia requires its time?

20:00
5
min at reading ▪
Luc Jose A.

For several decades, global economic alliances have changed under the effect of geopolitical and economic transformations. The BRICS block embodies this dynamics by extending to new members to strengthen its influence on the international scene. In 2023, Saudi Arabia, the world’s leading oil exporter, received an official invitation to join this strategic alliance. Unlike other countries, such as Iran or the United Arab Emirates, which quickly accepted, Riyadh receives cautious posture. Faisal Al-Ibrahim, the Saudi Minister of Economy and Planning, stressed that the kingdom would continue to carefully assess the consequences of membership. This strategic choice raises questions about the real intentions of Saudi Arabia and its future role in this new economic balance.

A luxury conference room with warm and gold tones, usually decorated with Saudi decorative elements (such as palm and crossed saber engraved on walls or columns). The scene can be seen in partial diving, aimed at a man sitting at a circular table with an elegant design. A man from Saudi Arabia dressed in white Thawbu and red and white keffieh, slightly leaned forward. His expression is concentrated, eyebrows slightly frowning and seems to be immersed in his thoughts. In front of him, the Earth Globe is partially illuminated by the orange, where the Bric Member States are highlighted.

Prolonged evaluation process

Saudi Arabia continues to evaluate the BRICS BLOCK Membership, more than a year after receiving an official invitation in 2023. Faisal Al-Ibrahim, the Minister of Economics and Planning, told Davos World Economic Forum that the kingdom prefers a thoughtful approach. He said that the country remains on the aim of the “global dialogue” and carefully examines “many aspects” associated with possible membership. According to him, this decision exceeds the economic framework and means complicated strategic considerations.

Unlike other nations that called on the same year as Iran, Egypt or the United Arab Emirates, which quickly joined the Alliance, Saudi Arabia receives a more detailed posture. This caution contrasts with the general enthusiasm around the expansion of the BRICS, a group that seeks to strengthen its influence on the world chessboard. Adding Riyadh to the block, as the world’s leading oil exporter, would offer a unique opportunity to combine the main energy manufacturer with the main consumers of developing economies. Such convergence should deeply transform global economic and energy balance.

Strategic hesitation or geopolitical calculation?

In addition to a simple technical evaluation, the hesitation of Saudi Arabia to BRICS seems to be influenced by deeper geopolitical considerations. Faisal Al-Ibrahim stressed that the BRICS invitation was just one of the “many other multilateral platforms” that asked for the kingdom. This note provides information on a clear strategy for diversification of international partnerships aimed at preventing any exclusive match with a specific group or alliance.

Such careful location can also be explained by the narrow ties of the kingdom with traditional allies, especially the United States, and the desire to avoid training in possible internal BRIC tension. A block, composed of members who sometimes have different priorities, could represent challenges in terms of political and economic coordination. Possible membership in Saudi Arabia, however, would have a significant impact on the world economic order. Thanks to its integration into this group, Riyadh would strengthen the convergence between oil producers and the main developing economies that consume energy, which would thus consolidate the influence of the BRIC on world markets. Such dynamics could redefine international economic relations, but also accelerate tilting to a multipolar order in which developing economies play a central role.

Saudi Arabia’s decision goes far for immediate economic considerations and reflects a strategic vision of face to face changes in the multipolar world. They select or non -integration BRICS could redefine global geopolitical and energy balance. Membership would offer an alliance increased influence on global markets, due to the central role of Riyadh in the oil industry. Otherwise, Saudi Arabia would confirm its cautious approach, which aims to maintain strategic autonomy to explore other versatile opportunities. Whatever his choice is, the kingdom is claimed as a key actor whose decision is formed by the outlines of the global economy in full transformation.

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Luc Jose A.

Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.