The BRICS alliance is considering inducting the United Arab Emirates (UAE) in the next summit in August. A senior official said to Business Standard on the condition of anonymity that BRICS aims to allow five countries into the bloc next month.
One among the five countries that are likely to be allowed entry into the group is UAE, said the official. The alliance would become BRICS+ as they expand from the five-nation bloc during the formation of a new currency.
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If UAE joins BRICS, it could have an impact on the U.S. dollar and realign the geopolitical dynamics of the financial world. The paradigm shift would be lasting and could affect the U.S. and other developed Western nations. In this article, we will highlight what could happen to the U.S. dollar if UAE joins the BRICS alliance.
BRICS: What Happens To The U.S. Dollar If UAE Joins the Alliance?
With robust financial backing from the UAE, BRICS could get all the confidence to take on the U.S. dollar. The UAE’s inclusion in BRICS expands the alliance’s economic potential giving power to challenge the U.S. dollar.
The UAE is a significant economic player in the Gulf region and boasts of a robust and diversified economy. The economy is built by sectors like oil and gas, finance, trade, tourism, and logistics.
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The Emirate’s participation brings additional investment opportunities and financial resources to the BRICS countries. It would also increase the group’s potential of signing new trade deals with other developing countries. These deals could involve joint ventures, technology transfers, and cooperation in areas such as oil production and renewable energy.
UAE’s induction into BRICS could capture a larger share of the international markets. The development puts the U.S. dollar at risk as BRICS could force other countries to settle trade in the new currency.
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In conclusion, UAE joining BRICS could dim the U.S. dollar’s prospects and make way for a new world order. The decline of the U.S. dollar begins when oil-rich Middle Eastern nations ask Western allies to pay in BRICS currency.
