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π₯ BRICS is expanding: who benefits from it and where to look for profit?
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Following Saudi Arabia, the UAE has become a member of BRICS: along with new opportunities, the market is expecting increased Arab influence. On January 1, Egypt, Iran and Ethiopia also joined
BRICS, but it is with the leaders of the Arab world that fresh prospects for an intercontinental union are associated.
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Both the Saudis and the UAE maintain high per capita incomes through their largest sovereign wealth funds and create enormous opportunities for growth through investment, trade and commerce. Participation in
BRICS activities will provide easy access to new markets on favourable terms for business and capital.
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The two key economies of the Arab world are almost synchronously targeting the Asian market, and the desire to strengthen their geopolitical influence is contributing to this rapprochement.
β’ The expansion of the union will lead to increased bilateral trade in local currencies as big business continues to look for an alternative to the dollar.
β’ The UAE and India signed an agreement to use the dirham and rupee in cross-border transactions and expand cooperation on interconnecting their payment systems.
β’ On December 28, the Gulf Cooperation Council and South Korea signed a Free Trade Agreement in Seoul.
β’ China and India are actively developing energy ties with the Gulf countries.
β’ Gulf countries signed a Free Trade Agreement with Pakistan.
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The reduction in Saudi Aramco oil prices for Asian consumers fits perfectly into this theme: the Arab Light premium to the Oman/Dubai benchmark will be reduced by $1.5β2.0 per barrel. In general, a special pricing system has been developed for India, the details of which have not yet been disclosed.
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So, joining the alliance between Saudi Arabia and the UAE right now, in anticipation of a global crisis, is a completely logical, economically justified, but at the same time political step.
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And what do you think?
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Profits to yβall!