RIYADH: Saudi Arabia has held off formally becoming a member of the BRICS bloc of countries regardless of attending a meeting in Brazil last week, two sources mentioned, finessing a problem that might upset Washington as Riyadh seeks to seal offers with its US ally.
The difficulty of BRICS membership has been diplomatically delicate for Saudi Arabia because it was first invited to affix in 2023, and stays so with President Donald Trump on account of go to subsequent week and Riyadh negotiating nuclear and know-how offers.
BRICS, based as a grouping of Brazil, Russia, India, China and South Africa to counter Western dominance of the world order, has grown in recent times to incorporate rising economies such because the United Arab Emirates, Egypt and Indonesia.
However whereas the BRICS web site exhibits Saudi Arabia – the world’s largest oil exporter – as a member, it has but to affix, in response to the 2 sources, each with direct data of Saudi coverage.
Saudi Arabia’s authorities communications workplace didn’t instantly reply to a request for remark.
Brazil’s overseas ministry referred Reuters to the Saudi authorities when requested concerning the kingdom’s listed standing as a member on the web site. Brazil is presently presiding over BRICS.
Riyadh doesn’t need to threat US anger as negotiations are underway with Washington, one of many sources and a diplomat mentioned.
Saudi Arabia despatched its deputy overseas minister to the Apr 29 assembly in Rio de Janeiro, the place ministers from the fast-expanding bloc did not agree a joint communique.
The dominion’s ambivalence about BRICS membership lays naked its high-stakes balancing act between China, its largest oil export buyer, and Washington, its indispensable safety and know-how accomplice – a tightrope stroll made ever extra precarious by the deepening US-Chinese language divide.
“The Saudis nonetheless see tons of worth in participating with BRICS and its member states. They are going to hold double-dipping – or multi-dipping – with international partnerships so long as they will,” mentioned Robert Mogielnicki, senior resident scholar on the Arab Gulf States Institute in Washington.
“I feel the Saudi calculation is that what they can get out of the US outweighs what they might get from BRICS membership, at the very least over the quick time period.”
In January, Trump demanded that BRICS decide to not creating a brand new foreign money or supporting one other foreign money that will exchange the US greenback, or face 100 per cent tariffs in opposition to BRICS nations.
SEEKING ALLIES
Whereas the dominion nonetheless favors its historic ally america, additionally it is searching for to nurture commerce ties with China, the biggest importer of Saudi crude.
In February, Saudi Arabia exported items price 15.2 billion riyals (US$4.05 billion) to China, marking a 20.6 per cent improve from a 12 months earlier, when commerce amounted to 12.6 billion riyals, information from the Observatory of Financial Complexity present. Over the previous 5 years, commerce has grown at an annualised price of fifty.3 per cent.
Complete Chinese language funding and building contracts in Saudi Arabia between 2005 and mid-2024 reached practically $71 billion, in response to the China World Funding Tracker, reflecting Beijing’s rising function within the kingdom’s financial transformation.
The Saudi partnership with america stays central to its safety, funding and know-how ambitions, even because it expands relations with rival powers like China and Russia.
The US is poised to supply Saudi Arabia an arms bundle price properly over US$100 billion, sources informed Reuters final month, saying the proposal was being lined up for announcement throughout Trump’s go to.
BRICS has sought to shift away from the greenback into different currencies. However a research by the Atlantic Council’s GeoEconomics Heart final 12 months confirmed the buck stays the world’s major reserve foreign money, and neither the euro nor the BRICS international locations have managed to cut back international reliance on the greenback.
“Whereas BRICS is a helpful discussion board for airing grievances over American behaviour, it isn’t but a physique coherent sufficient to offer public items on key points like foreign money cooperation, safety, or financial integration,” mentioned Steffen Hertog, affiliate professor in comparative politics on the London Faculty of Economics.
“Saudi appears like they’ve the leverage and they’re having fun with the place,” mentioned Saudi analyst Aziz Alghashian.
“They see it that america remains to be the principle actor, however there are others that might additionally present utility,” he added.
