The United Arab Emirates (UAE) plans to increase its capital investment in the New Development Bank (NDB) as part of its commitment to the BRICS community, according to UAE Economy Minister Abdulla bin Touq Al Marri. The UAE became a member of the NDB in 2019 and is among the six new members approved to join the BRICS group from January 2024.
The NDB, established in 2014 by Brazil, Russia, India, China, and South Africa, aims to provide funding for infrastructure and sustainable development projects. It officially began operations in 2015 and has since expanded its membership to include Bangladesh, Egypt, the United Arab Emirates, and Uruguay, with Saudi Arabia also in talks to become a member.
The UAE, as one of the few countries with over $1 trillion in sovereign wealth capital, has the potential to contribute significantly to the NDB. The country’s participation in the BRICS community could provide the bank with greater financial resources to compete with international institutions such as the International Monetary Fund and the World Bank.
Minister Al Marri emphasized that the UAE would continue to develop trade with Western countries while also strengthening commerce with lesser-developed countries in the Global South. He highlighted the significance of BRICS membership for the UAE, stating that it would enhance the country’s multilateral support to the world. The UAE has long been recognized as a global hub and is keen on expanding its global trade connections.
According to analysis from news outlets RBK and TASS, the combined GDP of the expanded BRICS countries, considering purchasing power parity, is projected to reach around $65 trillion. This would increase the bloc’s share of global GDP from its current 31.5% to 37%, surpassing the share of advanced economies in the G7 group, which currently stands at approximately 29.9%.
By increasing its capital investment in the NDB, the UAE aims to contribute to the development of infrastructure and sustainable projects in emerging economies. This move aligns with the UAE’s vision to diversify its economy and strengthen its position as a global financial hub. The country’s participation in BRICS reflects its commitment to global trade and cooperation, offering opportunities for mutual growth and development.
In conclusion, the UAE’s decision to inject more capital into the NDB underscores its commitment to the BRICS community and its dedication to supporting infrastructure and sustainable development projects. As a country with significant financial resources, the UAE has the potential to contribute substantially to the NDB’s efforts. By strengthening its ties with both Western countries and lesser-developed nations, the UAE aims to enhance its position as a global hub and promote global trade. The expansion of BRICS is expected to further increase the bloc’s economic influence, making it a prominent player in the global economy.
Source link
