Saudi Arabia still pondering on BRICS membership invitation


Saudi Arabia is still weighing the invitation to join the BRICS bloc, following an offer from the group last year, according to two reliable sources in a conversation with Reuters on Thursday.

Last August, BRICS invited Saudi Arabia, the United Arab Emirates (UAE), Egypt, Iran, Argentina and Ethiopia to join the group, effective January 1. Sources with inside knowledge clarified that January 1 was not a strict deadline for the invited countries to decide. They also hinted at welcoming more members in the future.

The UAE accepted the invitation, boosting the bloc's economic clout. Egypt, Iran, and Ethiopia have confirmed their membership as well. Argentina, meanwhile, declined the invitation. Newly-elected President Javier Milei cited ideological differences, announcing his refusal to "partner with communist nations" during his term.

With four new members joining in January, the BRICS bloc's economic muscle has swelled, now representing 36 percent of global GDP (PPP), surpassing the G7.

According to economists, Saudi Arabia's membership has the potential to boost the BRICS economic stance. The kingdom, the Arab world's largest economy, boasts a $1 trillion+ GDP and holds a grip on 15 percent of global oil reserves.

Despite earlier confusion fueled by a retracted state media report, Saudi Commerce Minister Majid Al-Kasabi confirmed at the Davos forum on Tuesday that the kingdom hasn't formally joined the BRICS group. This statement clarifies the situation after speculation swirled following the initial report that the kingdom had joined the bloc.

To clear the confusion, Saudi Economy Minister Faisal Alibrahim reiterated on Thursday that the country is still weighing its options regarding BRICS membership.

"The kingdom is a part of many multilateral platforms and multilateral institutions and whenever the kingdom is invited into one of them it goes through a process that is a multi-step process and at the end of it a decision is made," he told Reuters in an interview.

"Right now we are in a similar process and I will comment at the end of it."

Weighing options

Riyadh's BRICS decision hinges on economic opportunities and a complex geopolitical landscape.

Joining BRICS will bring significant benefits for Saudi Arabia, especially considering its current close economic ties with key members like China and India. Forging deeper bonds within the bloc would not only bolster Saudi Arabia's trade relations but also align with BRICS' long-term goal of advocating for developing nations globally.

With robust oil and natural gas resources, Saudi Arabia could play a pivotal role in the bloc's energy trade. BRICS nations already hold a substantial 30 percent share in global oil consumption and 22 percent in gas consumption.

Analysts also believe Saudi Arabia's BRICS membership can potentially unlock fresh economic avenues and elevate its influence among fellow Middle Eastern member states in the bloc.

However, rising tensions between the U.S., China and Russia and the kingdom's warming ties with Beijing have caused concerns in Washington. Riyadh believes there is a potential shift in U.S. commitment to Gulf security, so it has to pursue its own course.

BRICS itself has undergone massive changes in the past few years, expanding from its original five members to a bloc of nine. Its August 2023 summit, where over 60 countries participated, highlighted the group's shift from a purely economic focus to a broader platform representing the Global South's interests.

In addition, the UAE's recent inclusion in BRICS introduces an additional dimension to this complex narrative. Minister of Economy Abdulla bin Touq al Marri clarified on Thursday that the UAE's decision was motivated by economic factors rather than political ones. Nevertheless, this move underscores a growing trend among Gulf nations to broaden their global alliances, moving beyond conventional Western-centric partnerships.