BRICS group to double in 2024 after Saudi, Iran, UAE, Egypt, Ethiopia join ranks

BRICS, the group of emerging-market nations comprising Brazil, Russia, India, China, and South Africa, is poised to undergo a significant expansion on January 1. South Africa’s envoy to the bloc revealed that Saudi Arabia, Iran, the United Arab Emirates, Ethiopia, and Egypt have accepted invitations to join, effectively doubling the organization’s membership.

Background

In August, the existing BRICS members extended invitations to six nations, including the aforementioned, aiming to combine leading energy producers with major consumers among developing countries.
Argentina, the sole decline, reversed its membership bid under the new presidency of Javier Milei.

Participation and Acceptance

Representatives from the new invitees participated in a recent BRICS sherpa meeting in Durban, South Africa, indicating their acceptance of the invitation.
The five countries are set to send officials to the next sherpa meeting in Moscow on January 30.

BRICS Evolution

The term “BRIC” was coined in 2001 to highlight robust economic growth in Brazil, Russia, India, and China.
South Africa joined in 2010, expanding the group to include another continent and adding the letter “S.”

Global Interest

Approximately 30 countries express interest in establishing ties with BRICS, with Russia’s Foreign Affairs Minister Sergey Lavrov acknowledging the bloc’s growing international significance.

Future Prospects

Nigeria, Africa’s most populous nation, aims to become a BRICS member within the next two years, according to the country’s Minister of Foreign Affairs, Yusuf Tuggar.

Performance Challenges

Despite its initial optimism, except for India, BRICS has underperformed compared to other emerging-market peers over the past five years. US-led sanctions have limited Russia’s appeal to foreign investors, while certain sectors in China, particularly technology companies, face sanctions and potential investment bans.