The UAE’s accession to BRICS in 2024 marks a pivotal step in its global economic strategy, reinforcing its commitment to international collaboration and sustainable development. BRICS, comprising Brazil, Russia, India, China, and South Africa, represents 45% of the world’s population (around 3.3 billion people) and accounts for approximately 37.3% of global GDP. Projections indicate that BRICS could surpass the G7 in global trade by 2026, positioning it as a key player in the global economy.
UAE’s Strategic Industrial Engagement within BRICS
As part of its expanding role, the UAE recently participated in the 8th BRICS Industry Ministers Meeting, alongside Brazil, Russia, China, Egypt, Ethiopia, India, Iran, and South Africa. The discussions centered on strengthening multilateralism for equitable global development and security. A major outcome of the meeting was the launch of a Centre for Industrial Competences, in collaboration with the United Nations Industrial Development Organisation (UNIDO). This initiative aims to enhance industrial capabilities, support the development of industrial skills, and promote partnerships within the framework of the New Industrial Revolution (NIR).
The UAE’s participation highlights its commitment to driving innovation and industrial growth within BRICS, focusing on key sectors such as the chemical industry, metals, SMEs, smart manufacturing, clean technology, and medical equipment. The declaration also emphasized the importance of industrial policy coordination in alignment with the United Nations Sustainable Development Goals (SDGs), particularly SDG 9 on industry, innovation, and infrastructure.
Key Economic Contributions and Initiatives
- Trade and Logistics Enhancement: The UAE has developed multimodal trade routes, significantly reducing transit times. For instance, cargo from Karachi can now reach Uzbekistan in just 10 days, improving supply chain efficiency across BRICS nations.
- Clean Energy Investments: The UAE contributes $400 million to the Energy Transition Accelerator Financing (ETAF) platform, supporting renewable energy projects in emerging markets.
- Infrastructure Development: BRICS members are addressing a $4 trillion global infrastructure gap through significant investments in ports, railways, and airports to strengthen trade corridors and economic integration
Financial Collaboration and Technological Advancements
- Digital Tax and Cross-Border Transactions: The UAE is engaging in tax digitalization and technical cooperation with BRICS countries to facilitate seamless financial transactions and regulatory frameworks.
- Industrial Innovation and Startups: The BRICS Startup Forum plays a crucial role in fostering innovation-driven entrepreneurship, with dedicated efforts to support industrial transformation and the adoption of new technologies within the BRICS framework.
- New Industrial Revolution (NIR) Initiatives: The UAE, along with BRICS members, is leveraging smart manufacturing, AI-driven production, and clean technology to advance industrial development and sustainability goals.
Strengthening Global Economic Influence
The UAE is prioritizing projects that align with BRICS’ sustainable development agenda, such as clean energy initiatives and infrastructure investments. Through knowledge sharing and capacity-building programs, the UAE contributes its expertise in renewable energy, logistics, and agriculture to support development within BRICS nations.
The UAE’s active engagement with BRICS fosters inclusive economic growth, strengthens international trade networks, and positions the UAE as a vital contributor to sustainable global development. As BRICS expands its influence, the UAE’s strategic contributions help shape a balanced, cooperative, and prosperous global economic future.
