meed-logo

line1 line2 line3
SIGN IN / REGISTER

Brics tilts balance of regional interests

27 September 2023

 

With the extension of invitations to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE to join the Brics group of major emerging economies – and the acceptance by the UAE – Middle East interests are represented within the bloc for the first time and could end up comprising a third of its total membership.

This potential shift in the geopolitical reorientation of Brics reflects two interests for the group. The first of these is the strategic nature of the Middle East, both in terms of energy and logistics. The second is the key role that Saudi Arabia and the UAE could play in challenging the dollar.

None of this is necessarily a hard sell. As it stands, Egypt, Saudi Arabia and the UAE have reserved, business-like and occasionally testy relations with the US and the EU, while Iran is alienated by sanctions. All four Middle East countries meanwhile have strong and expanding trade relations with China and India.

From the perspective of China, India and Russia, the Middle Eastern invitees to Brics are ripe targets for being drawn further away from the sphere of Western influence. Brics, as a collective of Brazil, Russia, India, China and South Africa, is already a counter of sorts to the G7 and aims to level the global playing field. 

The addition of six new members stands to not only increase the bloc’s leverage, but, in Saudi Arabia and the UAE, aims to add two countries that are also ambitious about raising their stature on the global stage.

Strategic partnership

In terms of economics, the proposed expansion of the Brics membership would increase the size of the bloc by about a tenth, adding markets responsible for $2.6tn in GDP and populated by 409 million people, as of 2021, according to the World Bank. This builds on an existing GDP of $27.3tn – $17.7tn of it from China alone – and a population of 3.6 billion people.

Of the invited countries, Saudi Arabia represents the largest single potential net gain for the group, with its economy valued at about twice that of existing member South Africa.

Trade ties are already extensive within the group. China and India are top trade partners for Iran, Saudi Arabia and the UAE, so the prospective new Brics membership is building upon a framework of already highly interconnected and integrated economic relationships.

China is the single-most important trading partner of Saudi Arabia, accounting for 17 per cent of the kingdom’s foreign trade, while India accounts for about 9 per cent. The UAE and Egypt are also top trading partners for the kingdom. 

Overall, this means that the new prospective line-up of the Brics bloc could potentially represent a sizeable proportion of Saudi Arabia’s total trade moving forward.

China, India and Saudi Arabia are similarly two of the UAE’s top trade partners, while China, India and the UAE are all among Iran’s top trade partners. China and Saudi Arabia are likewise major trade partners for Egypt.

Though the expansion may represent a fractional upscaling in terms of market volume and value, the broadening of the bloc to strategic players in the Middle East could have an outsized potential to strengthen its member states’ global influence and collective bargaining.

Not least is the addition of three key members of oil producers’ group Opec – Iran, Saudi Arabia and the UAE – and observer state Egypt, up from the single Opec+ party Russia. 

This stands to bring key energy producers into yet closer economic partnership with China and India, both major energy consumers. It could also be key to progressing the Brics ambition of loosening the hold of the dollar by transitioning major bilateral energy transactions conducted in dollars into other currencies.

Next steps

The UAE’s quick acceptance of the Brics invitation shows its enthusiasm for strategic advancement and the potential leverage that a more empowered bloc could represent. The country will nevertheless, like India, need to carefully balance its role in the group with its existing US partnership – perhaps more so than any of the other invitees.

The UAE’s agreements with China and India to trade in local currencies is already a major win for the bloc in its efforts to reduce reliance on the US dollar. The more ambitious proposal for a common Brics currency to counter dollar fluctuations remains complex and uncertain.

The likes of Saudi Arabia and the UAE do, however, have the financial clout and expertise to potentially place the Brics-established New Development Bank on firmer economic footing, improve its project management and help establish it as a more credible counterpart to the likes of the Washington-based IMF and the World Bank.

Much will hinge on which of the remaining invitees ultimately choose to join the bloc. 

Iran and Egypt are expected to swiftly follow the UAE in accepting. Saudi Arabia is still carefully weighing the invitation, cautious of the chilling effect that throwing in its lot too clearly with China could have on its US relationship. 

For both Saudi Arabia and the UAE to join Brics would be a major coup for the bloc and a momentous shift in global politics.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11160270/main.gif
John Bambridge

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Public Investment Fund backs Neom

    16 April 2026

    Commentary
    Colin Foreman
    Editor

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Public Investment Fund (PIF) has backed Neom by including it as one of six strategic ecosystems in its newly approved 2026-30 strategy.

    The future of the $500bn gigaproject had been thrown into doubt following the postponement of the 2029 Asian Winter Games at the Trojena mountain resort, the cancellation of construction contracts – such as the $5bn deal with Italian contractor Webuild for dam works at Trojena – and the slowdown of development at The Line, where tunnelling contracts were cancelled and staff left the project.

    The backing comes as Neom’s operational focus appears to be evolving in response to shifting regional dynamics and global economic conditions. For example, on 15 April Neom posted on its official X account about a new Europe-Egypt-Neom-GCC corridor, describing it as a faster route for time-sensitive goods. It said the corridor combines trucking and ferry services to move goods quickly into the Gulf, adding that importers from several European markets are already using it to reach the UAE, Kuwait, Iraq, Oman and beyond.

    Powered by Pan Marine, DFDS and regional RoPax services, the initiative is positioned as a way to add flexibility and resilience to regional supply chains. This emphasis on logistics and immediate trade utility suggests a shift away from the more speculative architectural announcements that characterised Neom’s early years, towards activity more directly tied to current market realities.

    PIF’s broader 2026-30 strategy places heavy emphasis on “delivering competitive domestic ecosystems to connect sectors, unlock the full potential of strategic assets, maximise long-term returns and continue to drive the economic transformation of Saudi Arabia”.

    The inclusion of Neom as a standalone ecosystem within the Vision Portfolio suggests that while the project remains part of the kingdom’s Vision 2030 goals, it will be subject to the fund's focus on working with the private sector.

    That means the long-term success of Neom will increasingly depend on its ability to attract external investment and function as a viable economic hub rather than just a state-funded construction site.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16417262/main.jpeg
    Colin Foreman
  • Kuwait gas project worth $3.3bn put on hold

    16 April 2026

     

    State-owned Kuwait Gulf Oil Company’s (KGOC’s) planned tender for the development of an onshore gas plant next to the Al-Zour refinery has been put on hold due to uncertainty created by the US and Israel’s war with Iran, according to industry sources.

    The project budget is estimated to be $3.3bn, and the last meeting with contractors to discuss the project took place in Kuwait on 10 February.

    Previously, it was expected to be tendered in late March, but the tendering process was delayed due to the regional conflict and disruption to shipping through the Strait of Hormuz.

    One source said: “This tender is now effectively on hold while KGOC waits for increased stability in the region before it invites companies to bid for the contract.”

    Under current plans, the plant will have the capacity to process up to 632 million cubic feet a day of gas and 88.9 million barrels a day of condensates from the Dorra offshore field, located in Gulf waters in the Saudi-Kuwait Neutral Zone.

    Ownership of the field is disputed by Iran, which refers to the field as Arash.

    Iran claims the field partially extends into Iranian territory and asserts that Tehran should be a stakeholder in its development.

    It is believed that the Dorra field’s close proximity to Iran will make development difficult due to the current security environment.

    The offshore elements of the project are expected to be especially difficult to protect from attacks from Iran.

    In July last year, MEED reported that KGOC had initiated the project by launching an early engagement process with contractors for the main engineering, procurement and construction tender.

    France-based Technip Energies completed the contract for the front-end engineering and design.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413221/main.png
    Wil Crisp
  • Iraq pushes to revive oil pipeline through Saudi Arabia

    16 April 2026

    Iraq is pushing to revive an oil pipeline that passes through Saudi Arabia, allowing it to diversify export routes.

    Saheb Bazoun, a spokesman for Iraq’s Oil Ministry, said the pipeline would help to insulate Iraq from any future blockades of the Strait of Hormuz, which has been largely closed since 28 February.

    The original pipeline through Saudi Arabia has not been used for more than 30 years and would need work to be done in order to bring it online.

    It is 1,568km long, extending from the city of Zubair in Iraq to the Saudi port of Yanbu on the Red Sea.

    The pipeline was built in two phases during the 1980s. The first phase stretches between Zubair and Khurais, while the second extends to Yanbu. The pipeline’s operating capacity reached over 1.6 million barrels a day (b/d).

    Following the Gulf War, the pipeline was shut down in August 1990. It has remained out of operation for decades, despite Iraq’s several attempts to restart it.

    The original pipeline project cost over $2.6bn, including storage tanks and loading terminals.

    In the wake of the US and Israel attacking Iran on 28 February, global markets have lost 11 million barrels a day (b/d) of oil supply due to the effective closure of the Strait of Hormuz.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16413290/main.jpg
    Wil Crisp
  • Algeria opens bidding for water treatment plant

    15 April 2026

     

    State-owned Cosider Pipelines, part of Algeria’s public infrastructure group Cosider, has issued a tender for the construction of a demineralisation plant in In Salah in Algeria.

    The contract covers the design, supply, installation, testing and commissioning of a plant with a treatment capacity of 62,000 cubic metres a day (cm/d).

    The tender is open to local and international companies specialising in the design and construction of demineralisation and reverse osmosis desalination plants.

    The bid submission deadline is 26 April.

    The project will be located at In Salah, a key industrial area in southern Algeria, where treated water supply is important for both municipal and industrial use.

    Cosider said that individual bidders must demonstrate that they have completed at least one reverse osmosis demineralisation or desalination plant with a capacity of 20,000 cubic metres a day or more.

    They must also show an average annual turnover of at least AD1bn ($7.7m) for their five best years over the past decade.

    For consortium bids, all partners must share full responsibility for the contract, while the lead company must meet the technical and financial requirements.

    Recent projects

    In 2023, MEED reported that Riyadh-based water utility developer Wetico had won two contracts to develop water desalination plants in Algeria.

    Societe Algerienne de Realisation de Projects Industriels (Sarpi) awarded the contract for the El-Tarf desalination plant, while Entreprise Nationale de Canalisations (Enac) is the client for the Bejaja facility.

    Both plants were commissioned in 2025, each with a production capacity of 300,000 cm/d.

    Separately, Wetico was the main contractor on a third plant commissioned last year. The Cap Dijinet 2 seawater desalination plant in Boumerdes province covers 18 hectares and also has a capacity of 300,000 cm/d.

    Like many countries, Algeria is facing pressure on resources due to longer and more frequent droughts. Seawater desalination is seen as a key driver of the government’s strategy to guarantee drinking water supply.

    According to previous reports, the government is planning to build up to six additional plants by 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16404325/main.jpg
    Mark Dowdall
  • WEBINAR: UAE Projects Market 2026

    15 April 2026

    Webinar: UAE Projects Market 2026
    Tuesday, 28 April 2026 | 11:00 GST  |  Register now

    Agenda:

    • Overview of the UAE projects market landscape
    • 2025 projects market performance
    • Value of work awarded 2026 YTD
    • Impact of the Iran conflict on the projects market and real estate, assessing supply chain disruptions, material cost inflation and war risk premiums
    • Key drivers, challenges and opportunities
    • Size of future pipeline by sector and status
    • Ranking of the top contractors and clients
    • Summary of key current and future projects
    • Short and long-term market outlook
    • Audience Q&A

    Hosted by: Colin Foreman, editor of MEED 

    Colin Foreman is editor and a specialist construction journalist for news and analysis on MEED.com and the MEED Business Review magazine. He has been reporting on the region since 2003, specialising in the construction sector and its impact on the broader economy. He has reported exclusively on a wide range of projects across the region including Dubai Metro, the Burj Khalifa, Jeddah Airport, Doha Metro, Hamad International airport and Yas Island. Before joining MEED, Colin reported on the construction sector in Hong Kong.

    Click here to register

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16401868/main.gif
    Colin Foreman