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Saudi Arabia in Talks About Joining BRICS Bank

Saudi Arabia in Talks About Joining BRICS Bank

According to reports, the New Development Bank (NDB), also known as the "BRICS bank," is currently discussing its potential membership with Saudi Arabia.

The Financial Times reported that the NDB stated, “In the Middle East, we value the Kingdom of Saudi Arabia greatly and are currently engaged in meaningful discussions with them.” This move is seen as a way for the NDB to diversify its funding options amidst the ongoing Russia-Ukraine conflict.

Established in 2015, the NDB’s primary objective is to gather resources for infrastructure and sustainable development projects in the BRICS countries as well as other emerging economies. These countries include Brazil, Russia, India, China, and South Africa. Additional members such as the UAE, Uruguay, Bangladesh, and Egypt were admitted as the first wave of new members.

Since its establishment, the NDB has approved over 90 projects and provided loans totaling $32 billion as of October 2022, as reported by yicai.com. Experts believe that Saudi Arabia’s potential membership in the NDB would bolster the BRICS nations’ ability to mitigate risks in the face of the global trend of de-dollarization.

The inclusion of Saudi Arabia in the NDB would reinforce the financial strength of the BRICS fund pool and enhance crisis management capabilities, as stated by Pan Helin, joint director of the Research Center for Digital Economics and Financial Innovation at Zhejiang University’s International Business School. Pan also emphasized that Saudi Arabia possesses stable financial conditions with relatively low-risk potential.

Modern Diplomacy reported that the latest yield on NDB bonds was 5.1 percent, which is 100 basis points higher than institutions like the World Bank. The potential inclusion of Saudi Arabia in the NDB is expected to expedite economic diversification and development within the nation, reducing its dependence on Western blocs.


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The ongoing dollar crisis has led some developing economies to lose confidence in the US dollar, resulting in a consensus among these countries for de-dollarization. Seeking an alternative, Dong Dengxin, director of the Finance and Securities Institute of Wuhan University of Science and Technology, highlighted the importance of de-dollarization among developing nations.

Media reports suggest that the NDB is eager to expand its membership and that favorable conditions exist in various aspects. Reports suggest that Saudi Arabia has expressed interest in joining the BRICS, with discussions on this matter planned during the upcoming summit in August. Professor Zhu Jie from Fudan University proposed that Saudi Arabia begin by applying for NDB membership before considering BRICS membership.

During the 14th BRICS Summit held on June 23, 2022, leaders reached a significant consensus on expanding BRICS and expressed support for discussing the expansion’s standards and procedures. China’s Foreign Ministry Spokesperson, Wang Wenbin, emphasized the country’s commitment to working with other BRICS members to advance the expansion process and welcome more partners to join the BRICS family.

Author
Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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