Saudi Arabia's Possibility of Joining BRICS Bank

NDB bank logo outside its headquarters in Shanghai. Photo: Getty Images

The move is expected to strengthen ties between the Shanghai-based lender, which was established by BRICS (Brazil, Russia, India, China and South Africa) in 2014, and the world's second-largest oil producer, the Financial Times (FT) reported on May 28.

“As for the Middle East, we attach great importance to the role of Saudi Arabia and are currently engaged in a dialogue with them,” the NDB said in a statement.

Launched with the aim of financing infrastructure and sustainable development in member countries and other emerging economies , the NDB has expanded its membership to include Bangladesh, the United Arab Emirates, Uruguay and Egypt. The bank has invested loans for more than 96 projects in five founding member countries.

The multinational financial institution is also preparing to assess its funding options, which have been shaken by the sanctions imposed by the West over Russia’s military campaign in Ukraine. The BRICS Bank is scheduled to hold its annual meeting on May 30-31.

For Riyadh, becoming a member of the NDB offers the prospect of strengthening ties with the BRICS member states. The five economies account for more than 40% of the world's population and nearly a quarter of global GDP.

The talks come at a time when Saudi Arabia and China are deepening their cooperation. In March, Beijing brokered a landmark deal between the kingdom and Iran that helped ease regional tensions. Saudi Arabia has also significantly strengthened its energy ties with China.

Saudi Arabia is expected to become a financially credible shareholder in NDB as the international lender assesses its ability to raise capital. Sanctions against Russia have raised concerns about the bank’s dependence on Moscow, which holds a roughly 19% stake.

Source: Tin Tuc Newspaper (According to RT)

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