Egypt’s Membership Of BRICS: Opportunities and Prospects

After the creation of the BRIC term in the early 2000s (the economies of Brazil, Russia, India and China), the first meeting of the RIC group (Russia, India and China) was held in 2005 in St. Petersburg.

Brazil and later South Africa joined this group in February 2011, completing the initial BRICS group. Although BRICS is not an official alliance and there are wide differences between the members, by having held dozens of successful meetings and summits, there are still attractiveness and common interests in strengthening the BRICS’ broad economic mechanisms. Intra-BRICS trade reached US$162 billion in 2022, attracting the attention of multiple other countries expressing interest in joining and overtaking the collective GDP of the G7 group of nations.

BRICS Motivations and Opportunities for Egypt

BRICS countries possess about 26% of the global land area, and about 42% of the world’s population, meaning they have an increasing role in influencing the world economy. Due to the restructuring occurring within this, coupled with the strengthening of economic and financial cooperation within BRICS, the alliance has been welcomed by Egypt’s political and economic leaders.

At the 14th BRICS summit (in June 2022), new possibilities for economic cooperation were discussed. BRICS efforts in forming alternative payment systems and reserve currency for global trade, partnership for win-win cooperation, a gradual development of a non-dollar financial system, moving away from reliance on the US dollar, development of a common BRICS payment system (BRICS Pay), and an increase in trade with domestic currencies and the creation of a common digital currency have attracted more attention from Egypt.

The formation of reserves to solve liquidity problems and better cope with global crises through the economy of the member countries, forming a new multipolar economic strategy is a help to the Egyptian economy. BRICS attention to the development of alternative commercial and financial routes, promoting economic recovery, diversifying the economy, minimizing costs, developing e-commerce, market integration and cooperation with other countries has made BRICS more attractive to the Egyptian elite.

Since 2015, the New Development Bank has approved more than 90 projects worth US32 billion to support mainly infrastructure, with the bank’s focus on implementing projects related to the national development priorities of member countries.

Strengthening the role of the BRICS New Development Bank (NDB) is a move away from the hegemony of the United States, the International Monetary Fund, and the World Bank. Cairo became a member of the NDB after going through the necessary procedures and recently became a shareholder of the New Development Bank (NDB).