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BRICS Bloc Extends Membership Invitation and Receives Saudi Energy Comments

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BRICS Invites New Members and Receives Saudi Energy Comments

BRICS, the group of emerging market powers consisting of Brazil, Russia, India, China, and South Africa, has extended membership invitations to several countries, including Saudi Arabia and Iran. The expansion aims to enhance the bloc's global influence and counter the dominance of the Group of Seven (G7). With the inclusion of Saudi Arabia, Argentina, Egypt, Ethiopia, Iran, and the United Arab Emirates, BRICS will see its gross domestic product rise to 36% of global GDP and represent 46% of the world's population. The addition of new members reflects BRICS' commitment to cooperation and addressing common challenges. Saudi Arabia, in particular, emphasized its role in stabilizing the energy market and expressed its interest in developing economic and financial relations with the bloc. During the BRICS summit, United Nations Secretary-General Antonio Guterres urged leaders to restore faith in multilateralism, emphasizing the importance of cooperation in a fractured world. Guterres also highlighted the need for developed countries to fulfill their promises to developing nations, with a particular focus on Africa. Indonesia, initially expected to join the expanded bloc, requested a deferral of its membership to consult with counterparts in the Association of Southeast Asian Nations (ASEAN). China's President Xi Jinping praised the expansion of BRICS as a historic moment and a new starting point for cooperation among developing nations. India's Prime Minister Narendra Modi welcomed the new members and expressed India's commitment to working with other aspirants to join BRICS. The use of local currencies and payment instruments will be discussed at the next summit, reflecting the bloc's focus on enhancing financial cooperation. Please note that this article contains forward-looking statements and carries certain risks and uncertainties.

Implications of BRICS Expansion for New Businesses

BRICS' decision to invite new members, including Saudi Arabia and Iran, could have a significant impact on new businesses, particularly those operating in emerging markets. The expansion of BRICS - a bloc that already represents a substantial portion of global GDP and population - could shift the balance of economic power and influence away from traditional powerhouses like the G7. For new businesses, this could mean a shift in focus towards these emerging markets. The inclusion of Saudi Arabia, a major player in the energy market, and the bloc's emphasis on financial cooperation and use of local currencies, suggest a move towards greater economic self-sufficiency among these nations. This could create new opportunities, but also challenges, for businesses seeking to operate in or trade with these countries. Furthermore, the call by the United Nations Secretary-General for BRICS to restore faith in multilateralism highlights the potential for increased cooperation and shared growth among these nations. For new businesses, this could mean a more stable and cooperative business environment in these markets. However, it's important to note that such geopolitical shifts can also bring uncertainty and risk. As such, businesses must stay informed and adaptable to navigate this changing landscape successfully.
Story First Published at: https://financialpost.com/pmn/business-pmn/brics-latest-bloc-invites-new-members-saudi-energy-comments
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